Acquisitions play to games developer’s strengths
Games developer Team17 will announce a record first-half financial performance as it benefits from the smooth integration of three key acquisitions.
It expects the second half of the year to have a “more weighted performance” than in previous years, based on the releases planned and the continued attractiveness of its back catalogue.
Team17 was one of the stars of the pandemic, as demand for its products soared during lockdowns, and it has continued to do well. Team17’s chief executive Debbie Bestwick said she was “delighted” with the performance in the six months to June.
“The Group now has more evergreen own IP’s than ever before, alongside a phenomenal back catalogue portfolio, and in StoryToys, a growing subscription model.
“New releases include additions to many established franchises and licensed global brands alongside exciting new original IP’s that are tracking well.
“We have made a solid start to 2022 and remain confident about the near-term prospects for the group despite the ongoing broader macro-economic climate.”
Team17 acquired educational entertainment app developer StoryToys in a $49m deal last July and it saw a “significant” increase in both active subscribers and subscription revenues. It has also extended its deal with Lego to produce multiple apps.
In January it paid £83m for astragon Entertainment, and the German developer, publisher and distributor has so far met expectations.
Its £30m acqusition of The Label, which has been rebranded as Team17 USA, is “actively exploring future opportunities” to bring Team17 IP to mobile platforms alongside additional 3rd party titles.
Team17, which is based in Wakefield and Nottingham, will release its financial figures in September.
Despite the strong performance, the group has seen a correction in its share price, which has more than halved in the last year and returned it to its pre-pandemic levels. Last night’s close of 390p valued the group at £570m.
