Shares in AIM-listed games publisher Codemasters (LON:CDM) climbed by 1.54% to 336.10p (as of 15:25 BST) after reporting a 6.8% rise in revenues for the year ended 31st March. However, gross margins dropped by 190 basis points which contributed to a fall in adjusted EBITDA for the period. Management said that trading for the current year had started well and they had a slate of titles scheduled for launch this year.
CEO Frank Sagnier commented: “Our first full financial year since admission to AIM has been a period of significant progress across the Group. 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.
“The acquisition of Slightly Mad Studios in November 2019 brought a number of strategically important benefits to the Group. It has created diversified revenue streams, through two highly rated franchises, and added over 150 product developers, and we expect it to be earnings enhancing in FY21.
“This is an exciting time for the gaming sector and I believe we are well placed to take advantage of the opportunities that will arise during the next 12 months and beyond. Despite the wider macro-environment being hampered by COVID-19, we have seen minimal disruption to our business and I am confident in our growth prospects for the coming year, supported by a strong pipeline of game releases and investment in the sector“.