TIDMTM17
RNS Number : 3860M
Team17 Group PLC
21 January 2021
21 January 2021
Team17 Group plc
("Team17", the "Group" or the "Company")
Trading Update and IP Acquisition
Team17 , a global games entertainment label, creative partner
and developer of independent ("indie") premium video games,
provides the following pre-close trading update for the year ended
31 December 2020 ahead of publication of its full year audited
results.
Trading Update
The Company is pleased to report that Group performance for the
year ended 31 December 2020 will be ahead of the Board's
expectations in what has been an extraordinary and challenging year
for many, delivering year on year revenue and adjusted EBITDA
growth of c34% and c36% respectively. Our growing portfolio has
continued to perform well in H2 2020, in particular over the peak
Christmas trading period. We launched 9 titles in H2, more than any
previous year despite the impact of ever changing working
restrictions as a result of the pandemic. Our portfolio grew
stronger during 2020 with additions to the Worms, Escapists and
Overcooked franchises as part of the 12 titles launched in the year
across a variety of platforms, further strengthening our diverse
gaming portfolio.
As outlined in our H1 results, the Company saw one-off
commercial benefits delivered in Spring last year, however these
quickly normalised in early H2. We were particularly pleased with
the performance in the peak November and December months,
maintaining strong retail pricing in the face of an aggressive
competitive environment, which is a testament to both the quality
of our portfolio and our talented commercial team. We continue to
monitor the potential headwind impacts of the prolonged pandemic,
uncertain macro-economic and consumer environments alongside
manufacturing and supply chain challenges facing next generation
and existing gaming hardware. We expect these to be ongoing and key
considerations in 2021.
The Company looks ahead to 2021 with confidence in our pipeline
and our teams' ability to continue to build the business and whilst
we are assuming any additional one-off benefits linked to the
pandemic that impacted the 2020 results will not be repeated, we
believe the business will continue to deliver underlying growth and
support the long term prospects aligned with our ambitious
strategic plans.
2021 brings a solid and very diverse pipeline of both existing
IP on new platforms and new IP to look forward to including: Worms
Rumble and Overcooked: All You Can Eat on more platforms, Rogue
Heroes, The Unliving, Epic Chef, Super Magbot, Greak: Memories of
Azur, Honey I Joined a Cult, Hokko Life, a number of unannounced
games alongside Hell Let Loose to exit Early Access and the
announcement of additional platforms to support. We look forward to
providing further updates in the coming months.
The Company expects to report its full year results for the year
ended 31 December 2020 during March 2021.
Acquisition of Golf With Your Friends ("GWYF")
We are equally delighted to announce the acquisition of all
rights and assets for GWYF, an existing 3(rd) party label title to
our 1(st) party family for a total consideration of GBP12 million
("the Acquisition").
GWYF is a multiplayer golf video game created by Australian
developer Blacklight Interactive and published by Team17. The game
first launched in Early Access on Steam in 2016, Team17 then
partnered with Blacklight Interactive in 2019 and was involved in
the ongoing development and publishing of the title for its full
release on 24 May 2020 for PC, Nintendo Switch, PlayStation 4, and
Xbox.
The Acquisition will enable Team17 to further expand both its
portfolio and franchise footprint, enabling the Group to increase
1(st) party IP and ultimately create additional opportunities to
extend the lifecycle of the existing game. This will include
further downloadable content as well as exploring potential sequels
and other opportunities for the GWYF IP.
Since partnering together in 2019, Team17 has helped to more
than double the number of GWYF owners to 5.5 million, through
increased production values, new platforms, IP cross-over and
positioning as a higher value proposition.
The Acquisition will be satisfied wholly in cash, with an
initial payment of GBP9m and a further GBP3m paid within 12
months.
Debbie Bestwick, Chief Executive Officer of Team17 Group PLC,
said:
"2020 is definitely a year we will not forget in a hurry and
also provides insights into the challenges we can expect as a
workforce in 2021. Whilst the Board and I are very pleased with the
financial results we are even more pleased with the resilience and
dedication shown by our Teamsters and Label partners to deliver,
launch and sell the complex games we made in 2020. Many of our
games are local co-op and online play and we added cross play to
some of our titles alongside numerous quality of life and gaming
enhancement updates across our back catalogue. We achieved this
under the ever changing global restrictions and we should not
underestimate the support and passion for the games we create.
We are also delighted to start 2021 with the announcement that
we have acquired GWYF and see great potential in this IP. Over the
last two years, GWYF has shown strong consumer demand and mass
market appeal, doubling its owner base and achieving success on
multiple gaming platforms. GWYF is the type of IP we believe is
right for ownership, it is successful and proven but still at the
start of its journey. The team at Blacklight Interactive can be
assured that we will take great care of this amazing IP"
The Board and management look forward to 2021 and continuing to
build on our successful and robust journey since listing in
2018!"
Enquiries:
Team17 Group plc via Vigo Communications
Debbie Bestwick MBE, Chief Executive Officer
Mark Crawford, Chief Financial Officer
GCA Altium (Nominated Adviser) +44 (0)845 505
Adrian Reed / Paul Lines 4343
Berenberg (Broker)
Chris Bowman / Toby Flaux / Marie Moy +44 (0)20 3207
/ Alix Mecklenburg-Solodkoff 7800
Vigo Communications (Financial Public
Relations)
Jeremy Garcia / Charlie Neish +44 (0)20 7390
team17@vigocomms.com 0238
About Team17
Team17 is a global games entertainment label and creative
partner for independent ("indie") developers, focused on the
premium, rather than free to play market, and creating games for
the PC, console, mobile and tablet gaming markets.
Alongside developing the Company's own games in house ("first
party IP"), Team17 also partners with independent developers across
the globe to add value to their games in all areas of development
and production and in bringing them to market across multiple
platforms for fixed percentage royalties ("third party IP").
Since foundation in 1990, the Company has launched over 100
games, including the iconic Worms, Overcooked! and Escapists
franchises, Yooka-Laylee, Yoku's Island Express, My Time at Portia,
Hell Let Loose, Blasphemous, Golf With Your Friends, Neon Abyss and
Moving Out making Team17 one of the most prolific developers and
diverse partners of games for the indie market.
Visit www.team17.com for more info.
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END
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January 21, 2021 02:00 ET (07:00 GMT)
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