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Team17 Group PLC on Tuesday said it aims to deliver second-half-weighted results in 2022, after a first-half year rise in revenue was more than offset by surging administrative and sales costs.
Team17 is a Nottingham, England-based video game development company and publisher of educational entertainment apps for children. It has a diverse set of games, such as role-playing Black Death-themed Thymesia and dystopian science-fiction first-person multiplayer shooter Marauders.
Pretax profit in the six months to June 30 fell 20% to £11.2 million from £14.0 million a year prior. Revenue grew 33% £53.2 million to £40.1 million, but this increase was more than offset by surging costs. Cost of sales widened 39% to £27.7 million from £19.9 million. Administrative expenses more than doubled to £13.6 million from £6.2 million.
Further, share-based compensation turned to a cost of £69,000 compared to a gain of £433,000 a year before. Finance costs multiplied to £1.0 million from £20,000.
Looking ahead, Team 17 said: ‘Whilst mindful of the potential impact of ongoing macro-economic uncertainty and inflationary pressures, the board remains confident that the group will continue to trade in line with its expectations.’
The company added that is has a pipeline of new releases planned for the second half, aiming for 2022 to be a second half-weighted year.
‘We have made an encouraging start to the second half of 2022 and we remain confident about the group's prospects going forwards,’ Chief Executive Officer Debbie Bestwick stated.
Team17 shares were 2.7% higher at 380.00 pence each in London on Tuesday morning.
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