(Alliance News) - Video game developer Codemasters Group Holdings PLC said Tuesday it swung to a half-year profit thanks to a sharp drop in administrative expenses and steady revenue.
For the six months to the end of September, Codemasters said its pretax profit was GBP10.6 million, swinging from GBP7.6 million the year before, due to total administrative expenses falling to GBP18.2 million from GBP31.5 million.
The lower costs were mainly due to a reduction in research expenses and in the amortisation and impairment of computer software assets.
Revenue edged up 0.2% to GBP39.8 million from GBP39.7 million the prior year. This was supported by the release of Formula 1 racing game F1 2019 and the continued strength of Codemasters's back catalogue of games.
For the period, 62% of revenue were digital sales, up from 53%, leading to an improved gross margin of 89.0%.
Looking ahead, Codemasters said trading in the second half of the year to date has been in line with management expectations, and it is confident in meeting expectations for the year, with a revenue contribution from racing game GRID and further updates from DIRT.
"I am delighted to be able to report strong half-year results which are in line with expectations. The ongoing shift to digital delivery is helping both our margin and bottom line performance, a trend that we expect to continue," said Chief Executive Officer Frank Sagnier.
Shares in Codemasters - which is headquartered in Southam, Warwickshire - were up 0.2% at 214.00 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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