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Videogame developer and publisher Codemasters reported a sharp rise in profit as revenue was boosted by a jump in digital sales.
For the year ended 31 March 2020, pre-tax profit jumped to £12.2m from £2.9m on-year and revenue increased by 6.8% to £76m.
Digital sales represented 67.7% of total revenue, up from 59.2% last year, and was 'amplified at the end of the period following the outbreak of Covid-19,' the company said.
'Despite only having two game launches we have delivered further growth in revenues, gross profit and digital sales increasing over the period,' it added.
Gross margin decreased to 85.7% from 87.6%, but the company said gross margin would be boosted by growth in digital sales, which was expected to continue.
'The acquisition of Slightly Mad Studios in November 2019 brought a number of strategically important benefits to the Group. It has created diversified revenue streams, through two highly rated franchises, and added over 150 product developers, and we expect it to be earnings enhancing in fiscal 2021,' the company said.
Trading in the current financial year had begun well, it added.
At 8:08am: (LON:CDM) Codemasters Group Holdings PLC share price was +6.5p at 337.5p