Shares of Wakefield-based video game developer Team17 Group rose about 10% on Friday after it published a strong trading update for the year ended December 31, 2019.

Team17 said it now expects both adjusted earnings and revenue to be ahead of market expectations for the year.

Team17 shares rose about 10% to around 420p to give the firm a current stock market value of around £503 million.

“The company is pleased to report its growing portfolio has continued to perform well over the peak Christmas sales period with a specifically strong performance from the company’s multiplayer games on Nintendo Switch,” said the update.

“As a result, management now expects both adjusted EBITDA and revenue to be ahead of market expectations for the year ended 31 December 2019. 

“Furthermore, the company continues to develop a solid portfolio of new original game IP launches in 2020, representing more than any previous year. 

“The Group’s current pipeline for 2020 includes: Moving Out (SMG-Australia), Hammerting (Warpzone-Sweden), Neon Abyss (Veewo-China), Going Under (Aggro Crab-America), Rogue Heroes: Ruins of Talos (Heliocentric-America), Main Assembly (Bad Yolk Games-Sweden),  The Survivalists  (Team17-UK) and Golf with Your Friends on Console (Team17/Blacklight Interactive- UK/Australia). 

“Additional titles will be announced during 2020.

“The company will report its full year results for the year ended 31 December 2019 on 10 March 2020.”

Team17’s portfolio comprises over 100 games including The Escapists, Genesis Alpha One, My Time at Portia, Overcooked, Yoku’s Island Express, Yooka-Laylee, and the Worms franchise.

Analysts at Peel Hunt wrote: “Team17 has done it again: it has released another trading update that is a beat and raise, truly earning its premium rating.

“This is the fifth upgrade for FY19 over the past 12 months.

“Our 5% increase in EBITDA estimates today means it has been upgraded by 40% in total.

“FY20 looks to be a strong year too, with more new game titles confirmed today than this time last year.

“We also upgrade our EBITDA estimates by 18% for both this year and FY21, after waiting for more colour than in November.

“Team17 remains one of our top picks. We upgrade our DCF price target by 29% to 440p and reiterate our Buy.”