Team17 Full Year Results 2020

Key insights

6 takeaways

01
Team17 achieved record financial performance in 2020, with annual revenue growing 34% to £83 million and adjusted EBITDA increasing 36% to £30.1 million.See it on page 5
02
The company’s business model is heavily reliant on digital distribution, which accounted for 93% of total revenue in 2020.See it on page 4
03
Third-party publishing remains the primary revenue driver at 79% of total income, with 78% of that segment derived from publishing-only agreements and 22% from co-development.See it on page 4
04
The company maintained a strong liquidity position with £61.5 million in net cash and an operating cash conversion rate of 109%.See it on page 6
05
Operational capacity expanded significantly in 2020, with headcount increasing by 25% to 250 employees and the establishment of a new studio in Manchester.See it on page 2
06
Growth was supported by 12 new game releases, including Overcooked! All You Can Eat and Worms Rumble, alongside sustained performance from the company's back catalogue.See it on page 2

Summary

Team17 achieved its sixth consecutive year of record financial performance in 2020, characterized by a 34% increase in annual revenue to £83 million. This growth was driven by a robust portfolio of 12 new game releases, including titles such as Overcooked! All You Can Eat and Worms Rumble, alongside the sustained performance of an extensive back catalogue. The company’s strategic focus on digital distribution remains a cornerstone of its business model, with digital sales accounting for 93% of total revenue.

Profitability metrics remained strong throughout the fiscal year, with gross profit rising 33% to £39.1 million and adjusted EBITDA increasing 36% to £30.1 million. The company maintained a disciplined approach to operational expansion, increasing its headcount by 25% to 250 employees and establishing a second studio in Manchester. Financial health was further bolstered by a net cash position of £61.5 million and an impressive 109% operating cash conversion rate, providing the necessary liquidity to support ongoing investment in technology, development tools, and future acquisition opportunities.

The company’s operational scope encompasses both first-party and third-party publishing, with third-party publishing representing 79% of total revenue. The business model relies heavily on a mix of co-development and publishing-only agreements, which accounted for 22% and 78% of third-party revenue, respectively. Looking ahead, the organization is positioned for continued growth through a strategy centered on expanding its owned intellectual property, leveraging its increased physical and human resources, and pursuing further mergers and acquisitions to strengthen its market presence in the independent gaming sector.