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Codemasters

Codemasters revs up for second half with F1 game in pole position

The video game developer confirmed expectations for the full year

Codemasters - Codemasters revs up for second half with F1 game in pole position
Broker Peel Hunt said the second half will be “very exciting” after the launch of GRID

Codemasters Group Holdings PLC (LON:CDM) said the earlier release of its annual F1 game made a “more significant contribution” to its half-year revenue.

The 2019 edition was launched in June rather than August to be closer to the start of the season, and it is anticipated it will still benefit from the Black Friday and Christmas promotions, which have historically delivered strong sales for prior versions.

READ: Gfinity wins Codemasters marketing contract for new GRID game launch

In a trading update, the video game developer reported £39.8mln revenue for the six months to 30 September, a 0.2% from the same period last year, and confirmed expectations for the full year.

Digital sales represented 61.7% of total sales, while last year they were 53%, and is expected to grow further with future releases.

Net cash at the end of the period was £24.6mln, up 30.8% year-on-year.

The AIM-listed firm will release a new iteration of its GRID racing game on Friday, rather than 13 September as previously announced, to be closer to the November launch of Google's cloud gaming service Stadia, which features it as a launch title.

The game will be marketed in partnership with Esports company Gfinity (LON:GFIN), which will use its RealSport101 news subsidiary to spotlight various editorials and other opinion pieces written on the new game by leading motor sport writers, as well as hosting advertising, video content and weekly online interactive quizzes.

Broker Peel Hunt said the second half will be “very exciting” after the launch of GRID, awaited for five years, and reiterated its “buy” recommendation.

Shares were up 0.12% to 212.75p in the early afternoon.

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Price: 216 GBX

Market: AIM
Market Cap: £302.4 m
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