Team17 revenue rose 11% during H1 2024
British firm saw growth across its operations, with continued success from Astragon and StoryToys
Team17 has released its financial results for the first half of 2024, with the firm reporting a 11% increase in revenue to £80.6 million.
The numbers:
For the six months ended June 30, 2024:
- Revenue: £80.6 million, up 11% year-on-year
- Gross profit: £32.9 million, up 9% year-on-year
The highlights:
Team17 experienced growth across its business operations, including a 18% increase in EBITDA from £16.5 million in H1 2023 to £19.4 million. It also saw a 53% rise in profit before tax from £8.1 million to £12.4 million.
The firm released nine new games and three new apps during the period, which included Border Bots, Classified France '44, Undead Inc, and Autopsy Simulator. Hell Let Loose also launched on Game Pass, following Team17's acquisition of the IP in 2022.
Overall, games label revenue grew by 9% to £51.3 million, while its first party IP revenue increased 25% and represented 42% of Team17's total revenue.
However, the company noted that the new releases market "continued to remain challenging" during the first half of 2024, which contributed "to the decision to make a combined £4.6 million impairment across a small number of titles" expected to release in 2024 and 2025.
German-based developer Astragon also saw increased revenue growth of 13% to £18.5 million, following strong performances from Construction Simulator and Police Simulator which drove an increase in first-party sales of 17%.
Educational games studio StoryToys revenue experienced growth of 23% to £10.9 million, while active subscribers grew from over 310,000 in H1 2023 to more than 350,000.
"I am pleased with Team17's performance during the first half as we continue to focus on driving sales through first party IP titles and across our extensive portfolio, with strong demand for our games and apps," said Team17 CEO Steve Bell.
"Looking ahead, there is significant growth potential in our core markets – indie, edutainment, and working simulation games," he continued. "Our focus on creating a portfolio of games and apps with evergreen longevity, and leveraging our excellent lifecycle management capabilities, ideally positions us to capitalise on this and build a lifetime of play within our growing portfolio and player base."
Bell was appointed Team17 CEO earlier this year, following Debbie Bestwick's departure to a non-executive director role in March 2023.
Last October, reportedly 90 jobs were at risk as part of Team17's restructuring efforts. This followed a round of layoffs in early 2023 due to "a re-alignment of elements within its studio operating business model."