Of all the listed UK video games companies, perhaps Team17 (LON:TM17) is the standout success in terms of both share price performance and sustained high levels of financial growth. Since being founded in 1990, the group has grown to a market cap of nearly three quarters of a billion pounds with annual sales of nearly £62m.

We can see TM17 has outperformed the rest of the set I’m looking at over the past two years, with much of that outperformance coming in 2020.


Team17 is a video games label and creative partner for indie developers - the group supports both owned first party IP and third party IP, and typically receives a fixed revenue share.

After becoming too dependent on its flagship Worms IP, Team17 restructured and refocused a couple of years ago before listing in 2018. Today, its areas of expertise are:

  • Product acquisition: identifying and partnering with highly creative indie developers to help create quality titles.
  • IP & product incubation: a 100+ employee internal creative development studio has been established to build up TM17’s own-IP content library.
  • Go-to-market execution: the group promotes its games on digital distribution platforms through sales, marketing, events, social media and other avenues.
  • Lifecycle management: monetising its growing back catalogue via dynamic price management, incremental downloadable content, promotional planning and strategic additional platform releases.

Some 90% of TM17’s revenues are generated from digital sales, making for a high level of control over pricing and game lifecycle management, with minimal additional development costs post launch.

This strikes me as the right strategy - in a decade’s time, surely everybody will be digitally downloading their games? It is more cost effective for all parties involved and it also gives companies like TM17 way more scope to build brands and interact with customers.

Team17 has released over 100 premium games during its history including the iconic and well-established Worms series, as well as Overcooked and The Escapists. Some of these franchises have turned into real IP powerhouses. Worms generated approximately £5 million in annual revenue between 2009 and 2017 - so still going strong long after its original release in 1995.

The Group’s diverse portfolio of owned and third party IP, coupled with its effective digital marketing and lifecycle management, means back catalogue sales are an increasingly large and important part of revenue.…

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