In a trading update, the AIM 100 video games developer said that strong customer traction from both its new and established games since that start of 2019 meant adjusted underlying earnings (EBITDA) and revenues for the full year would now be “ahead of market expectations”.
The company said its first half had been boosted by strong sales across its back catalogue of games, which include titles such as Worms and Overcooked, a solid performance from an array of new release titles including My Time at Portia and Hell Let Loose and a higher proportion of revenues from its license income and subscription services.
For the rest of the year, the company said an indie kitchen puzzle game, Automachef, developed in partnership with Hermes Interactive was scheduled for release in the summer while two other titles, Yooka-Laylee and the Impossible Lair and Blasphemous, were expected to launch before the end of 2019.
The company's first half results are expected to be delivered in September.
Liberum ups target price
In a note, analysts at Liberum hiked their target price for Team17 to 290p from 255p and maintained their ‘buy’ rating, saying the firm’s upgraded forecasts represented its ability to publish games with reduced investment and low risk.
Meanwhile, Peel Hunt said they had upgraded their full-year revenue and EBITDA forecasts for the group by 10% on the back of the update, maintaining their ‘buy’ rating and 325p target price on the stock.
Team 17 shares were up 13.8% at 281.1p in mid-afternoon trading.
--Adds Liberum target change and updates share price--