61.7% of Codemasters H1 2019/20 sales were digital

61.7% of Codemasters H1 2019/20 sales were digital

The portion of Codemasters products bought digitally rose 8.7 per cent year-on-year, rising to 61.7 per cent for the six months ending September 30th, 2019.

That's according to the racing firm's report for the first half of its 2019/2020 fiscal year, in which the company reports revenue of £39.8m ($48.6m). That's a small increase of just 0.25 per cent year-on-year.

The increase in digital sales saw Codemasters' gross margin rise 0.8 per cent to 89.3 per cent. The company also says it has £24.6m ($30m) in the bank, 44.7 per cent on the £17m ($20.8m) that it boasted 12 months prior.

"Codemasters has a portfolio of racing games and generates sales through both new releases as well as through its existing catalogue of titles. Trading in the first half benefitted from the launch of the annual instalment of the F1 franchise, F1 2019, on 28 June 2019, as well as the Company's back catalogue of games," the company wrote.

"F1 2019 has received widespread critical acclaim. Due to the earlier release date of this year's instalment, in June rather than August, launching two months earlier to move the release date closer to the start of the season, it has made a more significant contribution to revenue in the first half. The Company anticipates that F1 2019 will still benefit from the normal promotions around the Black Friday and Christmas periods, which have historically delivered strong sales for prior versions of the F1 game.

"The performance of the Company's back catalogue has also been strong thanks to the accelerated growth of the digital business reflecting the longer life cycle of high-quality products. The Company expects digital growth to continue with future releases."

Codemasters went public in the summer of 2018 with a valuation of $371m. At the time of writing, the firm has a market cap of $364m.

When the company launched its IPO, CEO Frank Sagnier (pictured) said that digital had been a stabilising factor in the games business. Speaking to earlier this year, the chief exec discussed balancing older IP with newer ideas now that he had to answer to the markets.

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.