Codemasters results rns today10 Jun 2019 08:07
Outlook
We have a strong pipeline of launches in the financial year ending 31 March 2020 ("FY 2020"), with the release of the F1(R) 2019 game in June 2019, two months earlier than last year's iteration to move the release date closer to the start of the season. In September 2019, we will be bringing back our GRID franchise for the first time since 2014 and for the first time on this generation of Sony and Microsoft consoles. In addition, we will be launching GRID Autosport on Nintendo Switch in partnership with Feral Interactive. We are honoured to have the highly renowned racing driver Fernando Alonso as GRID's Racing Consultant which we believe will not just improve the quality of the in-game racing experience, but also add to the credibility of the game and raise awareness of it with a wider audience. GRID will also be a launch title on Stadia, the new Google streaming platform, which launches in November 2019.
Although not a new release as such, we will constantly update DIRT Rally 2.0 with new content and features and expect the game to deliver a material percentage of our back-catalogue revenue for FY 2020.
Our industry is seeing unprecedented levels of investment, including new digital stores and upcoming streaming platforms, driven by ever-improving network infrastructure and increasing access to broadband. These platforms all desire high quality games to attract consumers and we believe these represent a significant opportunity for building our revenue streams further in the coming years as racing is a key category for gamers. Unlike many of our competitors Codemasters is a business that is not constrained by platform either through technological capability or allegiance. We also expect a next generation of consoles to be released in the future, providing yet another major boost to the industry.
Ensuring our games are of the highest quality for our discerning audiences is key. As such, FY 2020 will see an increase in our development costs as we continue to continually improve the quality of our games, service them for many months post launch and invest in anticipation of the next generation consoles and streaming platforms to ensure that we keep providing innovative racing games to our community.
Alongside the Group's own successes, the structural drivers in our industry are here to stay and will propel the future growth of our business. We expect the continuing move into digital distribution, together with the evolution of the Games as a Service model and the development of streaming platforms, to provide further opportunities for Codemasters going forward, and we look forward to continuing to be at the forefront of the evolution of our industry. It has taken the industry forty years to become a $135 billion industry and we believe it is well placed for continuous growth. The most exciting times are clearly ahead of us.
Frank Sagnier
Chief Executive Officer
9 June 2019
Chief Financial Officer's Review
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