Strong results signal growing demand for listed games developer
Sheffield headquartered game developer, Sumo Group, has reported strong underlying growth in the videogames market, which is expected to continue in the long-term.
The business has issued its unaudited half year results for the six months ended 30 June 2021, which include revenues of £50.4m (H1 2020: £26.3m) and pre-tax profits of £3.7m (H1 2020: £2.8m).
Adjusted EBITDA increased to £11.4m (H1 2020: £6m).
Group headcount increased by 160 in the period to 1,203, including 13 people through the group’s acquisition of PixelAnt Games, in Poland, in January 2021.
The company announced its second India studio – in Bangalore – this month, and it is due to open in the first half of 2022. Sumo Group now comprises 15 studios in five countries.
Sumo says its pipeline of business development opportunities at the end of August 2021 had a total contract value of over £540m.
It adds its acquisition pipeline remains strong and the Group is continuing to evaluate new acquisition opportunities in line with its strategic priorities and growth strategy.
Carl Cavers, chief executive officer, said: “The extraordinary has become the norm at Sumo Group. The business has been going from strength to strength, expanding as demand increases in this large and fast-growing global market.
“Our great people continue to deliver great games, which, in turn, are generating strong financial results for the Group.
“Shortly after the half year end, we announced the recommended all cash acquisition of Sumo Group by Tencent, valuing the business at over £900m and delivering a very positive outcome for all our stakeholders.
“This process is ongoing and is expected to complete towards the end of Q4 FY 21.
“Since the start of 2021, we have increased the Group’s capacity through the acquisition of PixelAnt and added an exciting new publishing element to the business, through the launch of Secret Mode in March.
“Timbre Games was launched by Pipeworks in Vancouver in July and, earlier this month, we added Auroch Digital to our growing portfolio of studios via acquisition.
“Auroch Digital supports our publishing ambition and brings further talent acquisition opportunities in the South West to provide further capacity in games development. We are also expanding with the opening of our second Sumo Digital studio in India next year.”
