Revenues rise at Codemasters after “milestone” year

Codemasters LR

Revenues rose almost 12 per cent last year at Codemasters, the award-winning British video game developer and publisher based in Leamington Spa, which specialises in high quality racing games.

The company, which listed on the Stock Exchange last year, has reported a revenue increase of 11.9 per cent to £71.2 million, with gross profit increasing to £62.4 million (a rise of 16 per cent).

Last year the company successfully launched four titles including ONRUSH, F1® 2018 (annual release of the F1® franchise) – released on 24 August 2018 which is the highest rated PS4 racing game of 2018, F1® Mobile Racing – the official mobile game of the 2018 FIA FORMULA ONE WORLD CHAMPIONSHIP™ on iOS in October 2018 and Android in November 2018 and DiRT Rally 2.0 – launched in February 2019, introducing a fully fledged Games as a Service strategy.

The company also signed agreement with NetEase, Inc. to publish three of the Group’s key PC titles in China and announced an Esports partnership with Motorsport Network the world’s largest media company dedicated to motorsports.

Codemasters has announced a strong schedule for games to be released 2020 and expects to continue to increase the proportion of digital sales. The company also expected to increase its focus on “Games-as-a-Service” (“Games as a service” are a method of monetising video games either after their initial sale, or to support a free-to-play model. Games released under the GaaS model typically receive a long or indefinite stream of monetised new content over time to encourage players to continue paying to support the game).

Frank Sagnier, CEO of Codemasters, said:”I am pleased to report on a milestone year in Codemasters’ rich history, including admission to AIM in June 2018 and considerable strategic developments made across the Group. Significant progress was made against each of our key strategic objectives, as well as delivering profitability ahead of the expectations set at the time of the IPO. The Group has also put in place many of the building blocks that will underpin our future performance.

“We have continued to grow and engage our loyal consumer base through four game launches whilst also signing key strategic partnerships with leading publishers, platform holders and brands that will help us to expand our audience. We believe this is testament to our expertise in racing and history of creating AAA games.

“The structural drivers in our industry are here to stay and will propel the future growth of our business. We expect the continuing shift into digital distribution, together with the evolution of the Games as a Service model, the launch of streaming platforms and Next Gen consoles, our partnerships in China on both PC and mobile and the emergence of esports to provide further opportunities for Codemasters going forward. We look forward to continuing to be at the forefront of the evolution of our industry.”