Revenues have leapt significantly at Sheffield-headquartered video game firm Sumo Digital.
In 2019 listed Sumo鈥檚 annual revenues increased by 26.6 per cent to 拢49m.
Adjusted EBITDA was slightly ahead of expectations at 拢14.1m, up 37.5 per cent. It鈥檚 net cash position at the year-end was 拢12.9m, compared with 拢3.7m a year earlier.
鈥淲e 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,鈥� the group stated.
鈥淥ver the last few weeks聽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.
鈥淧aradoxically, the COVID-19 pandemic is expected to increase global video games software revenues, as people staying at home play more games. As such, it聽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.鈥�
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 拢23.6m cash and a relatively low risk business model.
鈥淒emand for great video games content is forecast to grow and may even strengthen as a result of the 鈥榮tay at home鈥� measures taken to protect our health through the COVID-19 pandemic.
鈥淎s such, we are confident in our strategy and ability to continue generating strong returns for our stakeholders in the longer term.
鈥淲e are grateful to our team for their resilience, our clients for their support and our investors for their forbearance.”