Revenues climb at listed video games group

Video games developer Sumo Group has achieved substantial growth in revenue and adjusted EBITDA in its final results for the year ended 31 December 2020, published today.

The Sheffield-headquartered business, which also has bases in Nottingham and Leamington Spa, managed revenue growth of more than 40%, from £49m to £68.9m.

Adjusted EBITDA increased 17.1% from £14.1m to £16.5m, while while pre-tax profits dropped to £0.9m from £7.4m.

Over this period, the business launched or announced 12 games, including five of its own-IP games.

Its first major acquisition was completed in October 2020 – Pipeworks Inc, an established US games developer, for an enterprise value of up to $99.5m/£72.4m.

Lab42, a cross-platform work for hire studio in Leamington Spa was acquired in May 2020, and is now performing ahead of expectations.

And total headcount increased to 1,043 at the year end (31 Dec 2019: 766), despite pandemic restrictions, including an aggregate of 163 people who joined through the acquisition of Lab42 and Pipeworks.

Sumo Group says its outlook is positive, highlighting an ongoing focus on increasing its staff numbers even further, both organically and via more acquisitions.

The firm says it has a very strong pipeline of business development opportunities on major new projects with both existing and new clients.

Carl Cavers, chief executive officer, said: “Our people have responded brilliantly to the pandemic restrictions, delivering many fantastic games and winning some incredible awards, including two BAFTAs.

“We also completed a major acquisition in the US and generated financial results ahead of everyone’s expectations.

“The year ahead is packed with even more exciting opportunities for our talent to shine, and we are excited about the launch of Secret Mode, our new publishing business, announced earlier this month.

“Our focus remains on delivering further strong growth organically and by acquisition, and the pipeline of opportunities remains strong.

“We have an enviable level of visibility on development fees in 2021 and, with our markets continuing to perform strongly, are increasingly confident about the future of the business.”