Expanded Team17 meets expectations in its first half

Video games developer, creative partner and label Team17 Group said in an update on Thursday that trading in the six months ended 30 June was in line with its expectations.

The AIM-traded firm said the enlarged group, including recent strategic acquisitions, had delivered “significant growth” against the first half, once again showing record half-year revenue and adjusted EBITDA performance.

Looking ahead, Team17 said it had a “solid and high-quality” portfolio of new releases planned for the second half, which, alongside continued back catalogue performance, was expected to drive a more second-half weighted performance than previous years.

The board said it remained mindful of ongoing macroeconomic uncertainty and inflationary pressures, the impact of which remained in line with its expectations.

Team17 said its recent acquisitions had all settled “well” into the group, and were delivering incremental earnings.

In addition, the senior management teams were exploring group synergies to leverage portfolio breadth, as it strengthened its entertainment portfolio offering.

“I am delighted with Team17's first half performance, trading in line with our expectations,” said chief executive officer Debbie Bestwick.

“Pleasingly, our new acquisitions, led by our talented and committed management teams, have worked incredibly well together across all parts of the group, and we are all looking forward to a busy and productive second half.

“The Group now has more evergreen own intellectual properties than ever before, alongside a phenomenal back catalogue portfolio, and in StoryToys, a growing subscription model.”

Debbie Bestwick said new releases included additions to many established franchises and licensed global brands, alongside “exciting” new original properties that were tracking well.

“We have made a solid start to 2022 and remain confident about the near-term prospects for the group despite the ongoing broader macro-economic climate.”

Team17 said it would announce its results for the six months ended 30 June in September.

At 1147 BST, shares in Team17 Group were flat at 390p.

Reporting by Josh White at Sharecast.com.