Codemasters, the Southam, Warwickshire-based video game developer and publisher specialising in high quality racing games, has reported a modest rise in revenues to the end of September 2019.
The Company generated revenue of £39.8 million for the six-month period versus £39.7 million for the same period last year. Digital sales as a proportion of revenue continue to increase, representing 61.7 per cent of total sales in the period, resulting in an improved gross margin of 89.3 per cent. At September 30, the Group had net cash of £24.6 million (£17 million H1 2019).
The Board says it is confident that the results for the full year will be in line with expectations.
Codemasters has a portfolio of racing games and generates sales through new releases and its existing catalogue of titles. Trading in the first half benefitted from the launch of the annual instalment of the F1 franchise, F1 2019, on 28 June 2019, as well as the Company’s back catalogue of games.
The performance of Codemasters back catalogue has also been strong thanks to the accelerated growth of the digital business reflecting the longer life cycle of high-quality products and it expects digital growth to continue with future releases.
The Company will releasing GRID, its first release of this franchise since 2014 and for the first time on this generation of Sony and Microsoft consoles, on 11 October. The release of GRID has been timed to take advantage of the peak release season, and close to the November launch of Google’s cloud gaming service Stadia, which features GRID as a launch title.
Codemasters, which is listed on the London Stock Exchange’s Alternative Investment Market (AIM) is an award winning British video game developer and publisher.