(Alliance News) - Codemasters Group Holdings PLC on Monday said its earnings for financial 2020 rose, driven by a jump in digital sales amid the Covid-19 pandemic.
Shares in the video game developer were trading 1.5% lower at 326.20 pence each on Monday morning in London, They are 12% higher than at the start of the year.
For its financial year ended March 31, Codemasters posted revenue of GBP76.0 million, up 6.8% from GBP71.2 million the year prior. Digital sales represented 68% of total sales, up from 59% in financial 2019, with that trend further accelerated by the closure of retail outlets during the height of the pandemic.
Pretax profit was GBP12.3 million, rising sharply from GBP2.9 million reported the year prior. Gross margin decreased to 86% from 88%.
No dividend was declared, unchanged from the previous year.
"Despite only having two game launches, we have delivered further growth in revenues, gross profit and digital sales increasing over the period. We have also continued to strengthen our leadership in the racing genre, achieved against the key strategic objectives that were set out at the time of IPO," said Chief Executive Frank Sagnier.
Looking ahead, the Warwickshire-based company said it remains confident in its growth prospects, which is supported by a "strong" pipeline of game releases and investment in the sector. It added that while the economy has been hurt by Covid-19, its business has suffered only "minimal disruption".
"The gaming market is rapidly growing, and we are well placed to take advantage of the opportunities that will arise during the next 12 months and beyond. We see a significant opportunity in games as a service, mobile gaming and esports, all of which are at a nascent stage for the group but will form a major part of our growth strategy as we expect to see increasing revenue contributions from these parts of the business," Sagnier said
"The launch of next-gen consoles confirmed by Sony and Microsoft for the holiday 2020 will be a boost to the console market and the growth of the market overall. Additionally, the shift to digital has been amplified by the closure of bricks and mortar retail stores, and we anticipate the trend towards digital sales to continue, which will deliver higher margins for the group."
By Ife Taiwo; ifetaiwo@alliancenews.com.
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