Team17 Interim Results Presentation: 6 Months Ending 30 June 2024

The Team17 interim results for the six months ending June 30, 2024, demonstrate a period of robust financial growth and operational discipline. The group reported an 11% increase in organic revenue to £80.6 million, consistently outperforming broader PC and console market growth estimates. Adjusted EBITDA rose by 18% to £19.4 million, reflecting improved margins and successful cost-control measures across the organization. The company remains on track to meet full-year expectations, supported by a diversified portfolio and strong cash generation.

Performance was driven by three primary divisions: Games Label, astragon, and StoryToys. The Games Label segment, which accounts for 64% of group sales, saw a 9% revenue increase, bolstered by a 54% surge in back-catalogue sales and strong performance from first-party intellectual property. The astragon division achieved 13% organic revenue growth, while StoryToys outperformed the edutainment market with a 23% revenue increase and a subscriber base exceeding 350,000. Across the group, first-party IP now represents 42% of total sales, underscoring a strategic shift toward internal franchise development and lifecycle management.

The company’s financial position remains strong, with cash and cash equivalents increasing to £54.3 million. Operational highlights include the launch of six new games, three new apps, and extensive post-launch support through DLCs and updates. Despite a challenging environment for new releases, the group has successfully implemented tighter development cost controls and a more disciplined greenlight process. Moving into the second half of the year, the focus remains on leveraging evergreen franchises, maintaining capital allocation discipline, and pursuing selective M&A opportunities within the independent gaming sector to sustain long-term growth.