everplay group (EVPL) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenues of £80.6m, up 11% year-over-year, driven by strong back catalogue and first-party IP growth.

• Adjusted EBITDA rose 18% to £19.4m, with margin improving to 24.1% from 22.7% in H1 2023.

• All divisions contributed positively to EBITDA, with strategic focus on Indie games, evergreen franchises, and cost discipline.

• Back catalogue revenue up 30%, first-party IP revenue up 25%, now representing 42% of total revenue.

• Confident in meeting full-year 2024 expectations, supported by a robust pipeline and disciplined capital allocation.

Financial highlights

• Group revenue reached £80.6m (+11% year-over-year), with all divisions growing above market level.

• Adjusted EBITDA increased to £19.4m (up 18%), margin at 24.1%.

• Gross profit grew 9% to £32.9m; underlying gross margin (excluding impairments) at 46.5%.

• Net cash from operations at £32m; cash and equivalents at £54.3m (+20% year-over-year).

• Adjusted EPS rose to 10.1p (up 17% year-over-year); profit before tax up 53% to £12.4m.

Outlook and guidance

• H2 trading in line with expectations; more balanced adjusted EBITDA between H1 and H2.

• Strong pipeline of third-party and first-party games, with 10 first-party IP projects in development for 2025-2027.

• Back catalogue expected to continue strong performance; management optimistic on medium-term growth and profitability.

• Continued focus on cost and capital allocation discipline, with further cash generation and selective M&A.

• Confident in delivering FY 2024 results in line with market expectations.