Sumo revenues rocket, expects positive COVID-19 impact
Revenues have leapt significantly at Sheffield-headquartered video game firm Sumo Digital.
In 2019 listed Sumo’s annual revenues increased by 26.6 per cent to £49m.
Adjusted EBITDA was slightly ahead of expectations at £14.1m, up 37.5 per cent. It’s net cash position at the year-end was £12.9m, compared with £3.7m a year earlier.
“We are now facing the unprecedented challenge of dealing with the COVID-19 pandemic, the scale and nature of which is constantly changing and, as yet, we have no clear visibility of its likely duration,” the group stated.
“Over the last few weeks and in close co-operation with our clients and with their consent, we have moved to working from home across the group. Whilst there has been some disruption and loss of efficiency, as project teams were migrated away from our ten studios to remote cloud-based working from home, early indications are encouraging.
“Paradoxically, the COVID-19 pandemic is expected to increase global video games software revenues, as people staying at home play more games. As such, it is reasonable to expect some improvement in royalty income on games already published and which have increased sales or usage with the current restrictions on movement in many countries. The quantum of such improvement is not yet clear.”
Its teams are currently working on 21 projects with 12 different clients, and launched its own IP Spyder last week on Apple Arcade.
CEO Carl Cavers said: "Our people are adapting well to home working and we have a strong and resilient business with £23.6m cash and a relatively low risk business model.
“Demand for great video games content is forecast to grow and may even strengthen as a result of the ‘stay at home’ measures taken to protect our health through the COVID-19 pandemic.
“As such, we are confident in our strategy and ability to continue generating strong returns for our stakeholders in the longer term.
“We are grateful to our team for their resilience, our clients for their support and our investors for their forbearance."