Revenues were up almost 12% for the full year 2023 at Wakefield-HQ’d indie games developer Team17, although the firm slipped to a pre-tax loss of £1.1m, which it put down to one-off costs of just over £30m during the year.
During the year, the group incurred one-off non-cash charges of £11.1m relating to games title impairments and a £20.9m goodwill impairment charge relating to the acquisition of The Label Inc. This resulted in the loss, compared to a £28.7m profit in 2022. Adjusted EBITDA was also £29.9m, down from £48.8m, although revenue increased to £159.1m from £142.3m tin 2022.
Back catalogue revenues grew by 10 per cent, and 12 per cent at the Games Label subsidiary, accounting for 71 per cent of group revenues, while its first-party IP represented 35 per cent of the total.
The group launched 11 new games over the period, including the multi award-winning Dredge, which has sold over one million units, Blasphemous 2, Headbangers: Rhythm Royale, Killer Frequency, Moving Out 2 and Trepang 2.
Its astragon subsidary achieved revenue growth of five per cent and successfully acquired Independent Arts Software during the year and launched three new games: Tram Sim, ABRISS and Howl.
A strategic review in the final quarter of the year, following the acquisitions, saw the business re-focus on its core indie games roots and reduce total headcount from 392 to 348.
Steve Bell, chief executive at Team17, said: “While 2023 presented some challenges for the Games Label, the speed and tenacity with which the teams have responded has demonstrated the exceptional talent we have at Team17.
“The Games Label is now realigned to its proven low-risk Indie model, tighter cost controls have been enforced and one-off actions taken to clean up the balance sheet.
“We are back on form in 2024, with a solid slate of games and apps, our exceptional back catalogue and a clear plan for growth across the Games Label, astragon and StoryToys. The year has started well.”
