Wednesday, July 15, 2020

Substantial growth for Sheffield’s Sumo Digital

New clients and acquisitions have helped drive profitability at Sheffield-based indie video games maker, Sumo Group.

For the year ended 31 December 2018, adjusted revenue was up 35.9% to £38.9 million, while adjusted EBITDA rose 24.6% to £10.4 million.

Last year, the company boosted its IP pipeline with the £2.2 million acquisition of The Chinese Room.

In January 2019, the company acquired Red Kite Games, boosting its headcount and opening up a new talent pool.

This complemented a number of key client wins, including one with Apple. Sumo said it now has two own-concept games under development for Apple Arcade.

It also confirmed a number of new as-yet undisclosed clients secured at the end of 2018.

“With the video games market forecast by Newzoo, a leader in games analytics, to grow around 30% in the next three years, driven by demand for new cloud-based subscription platform content supported by the world’s biggest publishers, we believe that the outlook for Sumo Group is as good as ever,” said CEO Carl Cavers.

“We are successfully attracting major new global publishers, as well as strengthening our relationships with existing and previous clients, and our business development pipeline remains very healthy.

“The challenge for the business is the acquisition of talent to support and deliver on these significant growth opportunities.

“Our quest to attract talented people to the business, both organically and through acquisition, is delivering results and we will maintain a keen focus on this aspect of the business in 2019.

“Having acquired Red Kite Games at the beginning of the new financial year, we are continuing to explore further interesting acquisition opportunities.

“We have had a positive start to the new financial year and have an unusually high degree of earnings visibility with slightly over 88% of Sumo Digital’s forecast 2019 development fees being already contracted or near contracted.

“Current trading is in line with the management’s expectations and I remain confident that the business will continue to deliver in 2019 and beyond.”

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