Team17 Annual Report and Accounts 2018

Team17 achieved a transformative milestone in 2018 by successfully listing on the AIM market, a move that fundamentally restructured the company’s balance sheet and provided a platform for sustained growth. The primary thesis of the 2018 fiscal period centers on the company’s ability to leverage its "Games Label" model—a dual-track strategy of developing internal intellectual property while curating a diverse portfolio of third-party indie titles. By maintaining rigorous greenlight processes and active lifecycle management, the company successfully scaled its operations, resulting in a 46% revenue increase to £43.2 million and an adjusted EBITDA of £15.3 million.

The financial health of the organization was significantly bolstered by the IPO, which raised £45.1 million in new capital. These funds were primarily utilized to eliminate over £38 million in outstanding shareholder and director loan notes, effectively deleveraging the business and strengthening its net asset position to £198.8 million. Profit after tax rose to £7.2 million, supported by strong performance in internal IP, which accounted for £32.1 million of total revenue. The company’s operational focus remains concentrated on the global digital games market, where it manages a portfolio exceeding 100 titles.

Corporate governance and financial reporting standards were formalized during this period to align with the QCA Code and IFRS requirements. Auditors provided an unqualified opinion, confirming the accuracy of the company’s financial statements, including the valuation of capitalized development costs and the transition to an 85% reducing balance amortization approach. With a robust board structure, new executive leadership, and a performance-based Long Term Incentive Plan for directors, the company established a stable foundation for future expansion. The year concluded with the organization operating as a financially sound, publicly traded entity with a clear strategy for long-term value creation.