Fortnite, PUBG Help Drive Turtle Beach Profits To New Heights
You’d think that Turtle Beach would have no trouble achieving success with quality headsets in [...]
You'd think that Turtle Beach would have no trouble achieving success with quality headsets in their own right. But they actually showed more of a drive in the market thanks to the growing field of Battle Royale games.
In its recent sales report, the headset manufacturer reported that its net revenue for the year grew 218 percent to $60.8 million for the sales period, up from $19.1 million the previous year.
But Juergen Stark, CEO for Turtle Beach, noted that a good deal of that success came from games like Fortnite. "The strong start to 2018 has only gained momentum in the second quarter, with another period of record results, enabling us to recently pay down $5 million of our subordinated debt from cash flow," said Juergen Stark, CEO, Turtle Beach. "Our growth continues to be driven by a healthy console gaming headset market and our market share gains. The successes of Fortnite and PlayerUnknown's Battlegrounds, and their innovative battle royale format, has driven new gamers into the market at significantly higher headset attach rates than we have experienced in the past. In addition, our better-than-expected execution in keeping up with consumer demand for our products allowed us to exceed our expectations.
"The strong market, and our outperformance, can be seen in NPD's latest U.S. and Canada console headset update. Year-to-date through June 2018, we grew our revenue share 570 basis points to 45.5% from 39.8% in the same period in 2017. While the market was up 86% on a sell-through basis during the same time, Turtle Beach was up 112%.
"Given our record results in the first half of 2018, and our expectation of a continued strong console headset market in the second half, we have significantly raised our 2018 financial outlook. We believe these positive developments have us in a strong position to accelerate selective growth investments and further reduce our debt over time," he concluded.
So what does this mean? As long as players are looking for good headsets while engaging in Battle Royale, they're likely to turn to companies like Turtle Beach. Here's hoping their success continues!
Meanwhile, you can check out our review of the Turtle Beach Stealth 300 headset right here!