everplay group (EVPL) H1 2025 earnings summary

Executive summary

• H1 2025 revenue declined 10% year-over-year to £72.4m, mainly due to timing of license revenues, new title launches, and lower physical sales, but new release revenues grew 40% and back catalog remained robust.

• Adjusted EBITDA was £19.2m, with margin improving to 26.5% due to cost discipline and a favorable product mix.

• Profit before tax rose 16% to £14.3m, and basic EPS increased 17% to 7.4p; adjusted EPS up 4% to 10.5p.

• Three IP and back catalog publishing rights acquisitions completed in H1, with additional deals signed post-period, supporting long-term growth.

• Group rebranded to Everplay Group, reflecting business evolution after key acquisitions.

Financial highlights

• Group revenues fell 10% to £72.4m, with Team17 down 4%, astragon down 35%, and StoryToys up 2%.

• Gross profit increased 2% to £34m, with gross margin rising to 46.5% due to no title impairments.

• Adjusted EBITDA margin improved from 24.1% to 26.5%; adjusted EPS rose to 10.5p.

• Operating cash conversion was 94%, with cash and cash equivalents at £59.4m at period end.

• Interim dividend of 1p per share declared for H1.

Outlook and guidance

• H2 expected to outperform H1, driven by new releases, a stronger back catalog during the holiday season, and additional licensed deals.

• Full-year adjusted EBITDA expected to be slightly ahead of current market expectations (£46.9m on £173.6m revenue).

• Around 10 new games to be released in 2025, with H2 weighted performance and higher new release revenues.

• 10 first-party IP games in development for 2025-27, with a strong third-party pipeline.

• Board remains confident in long-term growth, supported by a strong pipeline and new revenue streams.