Razer expects to be profitable in FY20 on back of strong hardware sales

Singapore’s Razer said it expects to report profits for this financial year after recording adjusted losses of US$40.3 million for the year ended December 31, 2019.

The gaming and lifestyle company attributed this to higher revenue growth and improvements in gross profit margin and expenses.

Photo credit: Razer

“2020 looks set to be a banner year for Razer,” co-founder and CEO Min-Liang Tan said in a statement. “We have seen continued growth momentum in our ecosystem of hardware, software, and services as a result of dominant brand position, strong consumer demand, and user base expansion.”

On the hardware side, the company said it has seen positive sales reception for products that were introduced in the first three quarters of the year. Razer also shared that its gaming peripherals business maintained a market-leading position in the US, Europe, Asia Pacific, and China.

The company also says that its software arm saw high growth, with its gaming credits service Razer Gold and fintech unit Razer Fintech recording strong total payment volume growth on a year-on-year basis for the three months ended September 30, 2020.

Razer’s announcement comes after it posted record-high revenue for the first half of 2020. It recorded US$447.5 million in revenues in the six months ended June 30, representing year-on-year growth of 25.3%.

The company also said it logged US$3.2 million in adjusted earnings before interest, taxes, depreciation, and amortization during the first half of the year, compared to the US$20.6 million in adjusted losses it recorded in the same year-ago period.