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Team17 shares level up following strong performance in maiden interims

The video game publisher and developer reported that its adjusted underlying earnings (EBITDA) for the period had risen 36% to £4.9mln, while revenues grew 48% to £15.4mln

Team17 logo with game characters
The firm's "significant" back catalogue underpinned 83% of its sales in the period

Team17 Group PLC (LON:TM17) saw its shares move up in early trading Tuesday after a strong showing in its maiden set of half-year results since listing in May.

The AIM-listed video game publisher and developer reported that its adjusted underlying earnings (EBITDA) for the period had risen 36% to £4.9mln, while revenues grew 48% to £15.4mln.

READ: Team17 tipped to grow organically at a faster clip than most larger video game publishers

The company also saw its gross margins for the period contract to 44.4% from 52.4% in the same period last year, although this was attributed to a revenue mix in the first half that was weighted towards third-party IPs, adding that margins would improve in the second half.

In its outlook, Team17 said performance for the full year would be second-half weighted as expected, adding that it was confident of meeting expectations for the full year.

Team17’s chief executive Debbie Bestwick also said that the company had continued its release of new games into the second half with PLANET ALPHA, its 100th game, in early September while “a number of titles” had already been scheduled for launch in 2019.

Bestwick added that the company had seen an increase in the contribution of its “significant” back catalogue to its revenue stream, which during the period derived 85% of its sales compared to 53% in the 2017 financial year.

At its initial public offering (IPO) in May, the company raised £107.5mln through a “significantly” oversubscribed placing.

Shares were up 2.2% at 230p.

Quick facts: Team17 Group PLC

Price: 349 GBX

AIM:TM17
Market: AIM
Market Cap: £458.2 m
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