Codemasters' earnings top market expectations

Video game developer Codemasters saw the strong trading witnessed over its first-half carry into the tail end of the year, leaving it with an EBITDA that was ahead of market expectations.

Codemasters now anticipates revenues in its first full year since the group's admission to AIM to come in at around £71m, while adjusted EBITDA is expected to hit roughly £18.5m, driven partly by its development agreement with Netease, a Chinese internet and online game services provider, and the successful launch of its DiRT Rally 2.0 title in February.

The Warwickshire-based firm also credited its outperformance to an increased proportion of its revenues being generated through digital channels and an earlier than anticipated delivery of technology and support for the Netease project, which will result in a greater than expected portion of the contracted revenue being recognised in 2019.

Codemasters will publish its final results for the year ended 31 March 2019 in June 2019.

As of 1140 BST, Codemasters shares had picked up 0.87% to 240p.