Shares of Codemasters Group Holdings PLC (LON: CDM) gained 10% on Tuesday after the producer of video games said it expects to report full-year earnings “significantly” ahead of market expectations.
‘Trading since the start of the year has been particularly strong and the board now anticipates that revenue and adjusted EBITDA (earnings) for the full year will be significantly ahead of current market expectations,' the company said.
This is possible, according to Codemasters, due to a strong performance of its flagship game Formula 1 2020. In addition, other catalog games have performed strongly as well at the beginning of its fiscal year.
“Fast & Furious Crossroads, which was released on 7 August 2020, has to date performed as anticipated, and the board is pleased to report that levels of pre-orders from both retailers and consumers for the title launches scheduled for the remainder of the year also remain consistent with original expectations,” the firm said in a trading update.
Earlier, Codemasters reported revenue of £76 million and pre-tax profits of £12.2 million for the fiscal year ending March 31.
Codemasters share price surged 10% to log 420p, the new all-time high for the stock.