Video game firm sees 12% rise in revenues
Team17’s revenues rose to £159m, up from £142m last year, according to unaudited full-year 2023 results published today.
The Wakefield and Nottingham-based video game maker’s adjusted EBITDA declined 39% from £49m to £30m as gross margins contracted from 49% in 2022 to 36% in 2023. The firm booked a pre-tax loss of £1.1m compared to a profit of £29m in 2022.
Revenues from the firm’s back catalogue grew by 10%, and those from its Games Label subsidiary from by 12% as it refocused its strategy on its core indie games roots, which saw the firm’s overall headcount reduced from 392 to 348 people. The label’s Dredge game, released last year, won multiple awards including IGN and Window’s Central’s Best Indie Game of the Year award.
The firm’s subsidiary astragon, which focuses on simulation games, completed acquisition of Independent Arts Software in April in a move to accelerate creation of a first-party IP game.
Team17 said it had a pipeline of 10 new games and apps to launch in 2024, and entered the year on a more appropriate cost base, which stricter cost controls in place.
Chief executive Steve Bell, who joined the firm in September, said, “While 2023 presented some challenges for the Games Label, the speed and tenacity with which the teams have responded has demonstrated the exceptional talent we have at Team17.
“The Games Label is now realigned to its proven low-risk Indie model, tighter cost controls have been enforced and one-off actions taken to clean up the balance sheet.
“We are back on form in 2024, with a solid slate of games and apps, our exceptional back catalogue and a clear plan for growth across the Games Label, astragon and StoryToys. The year has started well.”
