Codemasters moves to next level with profits boost

Profits and revenues at Southam-based videogame developer Codemasters have both risen for the 12 months to 31 March.

Turnover was up 6.8% to £76m, while profits were up 4.5% to £65.2m.

During the year, Codemasters extended its contract with Formula One Management for exclusive game rights for the FIA Formula One World Championship franchise from 2021 until 2025, with a further option for the 2026 and 2027 seasons. The firm also launched a successful £20m fundraise and bought Slightly Mad Studios.

Frank Sagnier, CEO of Codemasters, said: “Our first full financial year since admission to AIM has been a period of significant progress across the Group. Despite only having two game launches we have delivered further growth in revenues, gross profit and digital sales increasing over the period. We have also continued to strengthen our leadership in the racing genre, achieved against the key strategic objectives that were set out at the time of IPO.

“The acquisition of Slightly Mad Studios in November 2019 brought a number of strategically important benefits to the Group. It has created diversified revenue streams, through two highly rated franchises, and added over 150 product developers, and we expect it to be earnings enhancing in FY21.

“This is an exciting time for the gaming sector and I believe we are well placed to take advantage of the opportunities that will arise during the next 12 months and beyond. Despite the wider macro-environment being hampered by COVID-19, we have seen minimal disruption to our business and I am confident in our growth prospects for the coming year, supported by a strong pipeline of game releases and investment in the sector.”