Team17 experienced an 11% increase in revenue during the first half of 2024

Team17 has unveiled its financial performance for the first semester of 2024, showing revenue growth of 11%, reaching £80.6 million.

The numbers:

For the six-month period ending June 30, 2024:

• Revenue: £80.6 million, marking an 11% increase over the previous year
• Gross profit: £32.9 million, a 9% rise from the previous year

The highlights:

Team17 saw company-wide growth, with EBITDA rising 18% from £16.5 million in the first half of 2023 to £19.4 million. Profit before tax experienced a 53% boost, moving from £8.1 million to £12.4 million.

During this time, the company launched nine new games alongside three new apps, such as Border Bots, Classified France '44, Undead Inc, and Autopsy Simulator. Additionally, Hell Let Loose debuted on Game Pass after Team17 acquired the IP in 2022.

The revenue from its games label increased by 9% to £51.3 million. Revenue from first-party IP saw a 25% increase, comprising 42% of the total revenue for Team17.

Despite these successes, the company observed challenges in the new releases market during the first half of the year, leading to a combined £4.6 million impairment across several titles slated for release in 2024 and 2025.

Germany's Astragon reported a 13% increase in revenue to £18.5 million, driven by strong performances from Construction Simulator and Police Simulator, which resulted in a 17% increase in first-party sales.

StoryToys, specializing in educational games, saw an uptick in revenue by 23%, reaching £10.9 million. Active subscribers grew from 310,000 at the start of the year to over 350,000.

Steve Bell, CEO of Team17, expressed satisfaction with the company's progress, highlighting a focus on enhancing sales through first-party IP titles and a broad product lineup with significant demand for games and applications.

Bell, who became CEO earlier in 2023, succeeding Debbie Bestwick, anticipates growth in key areas like indie, edutainment, and simulation games. His strategy focuses on creating enduring games with robust lifecycle management.

Back in October, news emerged that 90 positions might be eliminated as part of a restructuring plan, following earlier layoffs in 2023 to adjust the studio's operational model.