Revenues and profits grow at the Sheffield-based Sumo Group
Games developer Sumo Group, which develops games for Microsoft, Sega and Sony, has reported a year of substantial growth in revenue and profitability.
Sheffield-based Sumo said adjusted revenue rose 36 per cent to £39m in 2018 while the adjusted EBITDA rose by 24.6 per cent to £10.4m.
Carl Cavers, the chief executive of Sumo Group, said: “With the video games market forecast by Newzoo, a leader in games analytics, to grow around 30 per cent 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.
“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 per cent 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.”