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.

Editor - PC Games Insider

Alex Calvin launched in August 2017 and has been its editor since. Prior to this, he was deputy editor at UK based games trade paper MCV and content editor for marketing and events for London Games Festival 2017. His work has also appeared in Eurogamer, The Observer, Kotaku UK, Esquire UK and Develop.


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