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Team17 HY revenues hit record £69m+ although profits slightly down

Wakefield HQ’d games developer Team17 has reported record half-year revenues for the six months to June 30, although profits have slipped slightly, with the company’s CEO citing “one of the most competitive years” for the gaming industry alongside “deep discounting” as a cause.

Revenue was up to £69.7m for the period, up from £53.2m in the same period of 2022. Adjusted EBITDA was £16.5m, compared to £18.2m the previous year, and profit before tax slipped to £8.1m from £11.2m.

Team17 said the growth in revenue had been achieved across the group, driven by a diversified portfolio of games, including five new titles in H1, apps and strong new release profile.

New games in the HY included included Dredge, Trepang2 and Killer Frequency while apps included Barbie Color Creations, LEGO® DUPLO® DISNEY – MICKEY AND FRIENDS and Marvel HQ. Headcount was also up for the period, from 392 at the end of 2022 to 438.

Debbie Bestwick, chief executive at Team17, said: “We are pleased with the group’s first half performance, with strong growth delivering record revenue levels, against a backdrop of one of the most competitive years for high quality launches and deep peer discounting that I can remember. The strength of our results illustrates the success of our diverse portfolio strategy, expertise in lifecycle management and franchise building, disciplined approach to discounting, and the tireless commitment of our people across the Group.

“We are mindful that the gaming environment remains highly competitive, and we continuously review cost efficiencies to ensure we have the right balance between internal and outsourced resources in our service areas. We believe that this will enable us to remain agile and cost effective to deliver the best results for our partners and stakeholders over future years.

“astragon and StoryToys continue to deliver strong revenue growth, high quality content and synergy opportunities. In the current environment, I believe our strong balance sheet and M&A track record puts us in an excellent position to pursue further opportunities which can support our strategy of enhancing the Group’s reach across genres, platforms, and customer demographics. We are being presented with more new content opportunities of quality than ever before and will remain as highly disciplined in our approach as ever to ensure we maintain our track record of delivering exceptional games to our customers.

“I have been impressed with the passion, insight, and leadership that Steve Bell has already brought to the Group in his role as CEO designate and am delighted with Frank Sagnier’s appointment as chair designate. So finally, as I enter my last few months as CEO, I can confidently say I have never been more excited about the group’s leadership and future.”

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