StockMarketWire.com - Video game developer Codemasters swung to a profit in its maiden set of results as revenue rose 12% boosted by improved digital sales growth.

For the year ended 31 March, the company reported pre-tax profits of £2.9m, compared with a loss of £1.48m as revenue increased 11.9% to £71.2m.

Gross profit increased 16.0% to £62.4m for the year, as gross margin increased 3.0% to 87.6% due to a higher proportion of digital sales which now represent 59.2% of total sales.

Looking ahead, the company said it expected to increase the proportion of digital sales and touted a strong slate of games to be released.

'I am pleased to report on a milestone year in Codemasters' rich history, including admission to AIM in June 2018 and considerable strategic developments made across the Group,' said Frank Sagnier, CEO of Codemasters.

'Significant progress was made against each of our key strategic objectives, as well as delivering profitability ahead of the expectations set at the time of the IPO.'

'We expect the continuing shift into digital distribution, together with the evolution of the Games as a Service model, the launch of streaming platforms and Next Gen consoles, our partnerships in China on both PC and mobile and the emergence of esports to provide further opportunities for Codemasters going forward.'




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