Press release -
SUMO: 40% GROWTH, THREE STARS, AND TWO BAFTAs
Wednesday 31st March 2021: Sumo Group, the award-winning provider of creative and development services to the video games and entertainment industries, has today announced that it achieved record financial results in 2020, including 40% revenue growth (24% organic and 16% acquisitive), despite the challenges of the COVID-19 pandemic.
The Group delivered 279 milestones with 12 games launched or announced in the year, of which five were Own-IP.
Financials
Reported results |
2020 | 2019 | Change |
| Revenue | £68.9m | £49.0m | + 40.7% |
| Adjusted EBITDA1 | £16.5m | £14.1m | + 17.1% |
| Net cash | £6.8m | £12.9m |
1. Adjusted EBITDA is a non-GAAP metric used by management and is not an IFRS disclosure. It is defined as statutory operating profit adding back amortisation, depreciation, share-based payment charge, investment in co-funded games expensed, exceptional items, the fair value loss on contingent consideration less the operating lease costs capitalised under IFRS 16 and foreign currency derivative contracts.
In May 2020, Lab42, a cross-platform work for hire studio in Leamington Spa was acquired, followed in October by Pipeworks Inc, an innovative and well-established West Coast US games developer. Total headcount in the group increased to 1,043 by 31st December 2020, up from 766 a year earlier.
PixelAnt Games in Wroclaw, Poland, was also added to the group in January 2021, providing an established, low-risk base for growth in a video games talent hot-spot.
Sumo has also achieved a 3 Star Accreditation in the highly regarded Best Companies Survey and scooped two BAFTA awards for Sackboy: A Big Adventure, launched in November 2020.
“2020 has been an extraordinary year for us in so many ways. Our people have responded brilliantly to the pandemic restrictions, delivering many fantastic games and winning some incredible awards, including two BAFTAs. We also completed a major acquisition in the US and generated financial results ahead of everyone’s expectations,” said Carl Cavers, CEO.
“Achieving the maximum 3 Star Accreditation in the Best Companies Survey, announced in February 2021, was a massive achievement for the Group but we won’t rest on our laurels. Attracting and retaining the best talent lie at the heart of our future growth plans and we will continue adapting and improving to make Sumo Group the best place to work in video games.
“The year ahead is packed with even more exciting opportunities for our talent to shine, and we are excited about the launch of Secret Mode, our new publishing business, announced earlier this month. Our focus remains on delivering further strong growth organically and by acquisition, and the pipeline of opportunities remains strong. We have an enviable level of visibility on development fees in 2021 and, with our markets continuing to perform strongly, are increasingly confident about the future of the business,” continued Cavers.
“Talent is the Group’s most important asset and key to our growth plans. The high value we place on our people has been demonstrated this year not only by the Group’s response to COVID-19 but also by a major review of our employee benefits package. Our aim is to ensure that Sumo’s offer is at least as good as any offered elsewhere in the industry, and that it provides flexibility, enabling our people to choose the benefits that are most important to them and their families. This new flexible package will be fully implemented during 2021,” added Sumo Group Chair, Ian Livingstone C.B.E.
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For more information please refer to the attached RNS or contact:
Dean Barrett Tel +44 (0) 7802 898 110
Ben Skipper Tel +44 (0) 7881 584 773
Mark Lamb Tel +44 (0) 7851 959 945
