Team17 Group H1 2023 Results

Team17 Group reported strong financial growth for the first half of 2023, achieving total revenues of £69.7 million, a 31% increase compared to the previous year. This performance was driven by a diversified portfolio across three primary divisions: Games Label, astragon, and StoryToys. The company’s own intellectual property (IP) portfolio grew by 32% and now accounts for 39% of total group revenues, while the back catalogue remains a vital revenue engine, contributing 79% of total earnings.

Each division demonstrated significant momentum during the period. The astragon division emerged as a standout performer with 109% revenue growth, bolstered by the acquisition of Independent Arts Software and the continued success of simulation titles. The Games Label division saw a 15% revenue increase, supported by the release of five new titles, including Dredge and Trepang2, alongside extensive downloadable content updates. StoryToys also maintained a strong trajectory with 39% growth, expanding its reach through new partnerships with major global brands like Disney, Mattel, and The LEGO Group.

Despite the topline growth, the group experienced a decline in adjusted EBITDA to £16.5 million, down from £18.2 million in the prior year, attributed to shifts in sales mix, increased royalty payments, and higher administrative and marketing expenses. Management noted that these costs were weighted toward the first half of the year and expects improved margins in the second half. The company maintains a healthy cash position of £45 million and continues to pursue a disciplined, selective mergers and acquisitions strategy to bolster its development capabilities. Looking ahead, Team17 remains focused on its pipeline of new releases and content updates, with leadership expressing confidence in meeting full-year market expectations.