Investing.com -- Shares of Team17 Group climbed 14% today after the company's full-year trading update indicated revenue and adjusted EBITDA are expected to be slightly ahead of market expectations.
The video game company's positive performance in the second half of the year was a result of robust sales from new releases and a strong back catalogue, with momentum carrying into January following a vigorous Christmas trading period.
The company's financial results have been buoyed by the successful performance of its new titles and the enduring appeal of its existing games. According to the latest update, Team17's revenue and adjusted EBITDA are anticipated to surpass the Bloomberg consensus, which had forecasted revenue at £161.3m and adjusted EBITDA at £41.4m.
Analysts have responded positively to the update. "This is a reassuring update in our view, with the back catalogue continuing to underpin the group's performance. The shares had a weak H2 with concerns over new title performance, the H2 weighting and the sale of shares by ex CEO/Founder Debbie Bestwick. Today's update and the January continuation of momentum should reassure investors as the group enters a noisy 2025 in terms of AAA releases," an RBC analyst commented.
Investors appear to have regained confidence in the company, as the stock's rise reflects a reversal from the latter half of the year, which was marked by concerns over the performance of new titles and the impact of the sale of shares by the company's former CEO and Founder, Debbie Bestwick.
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