REG - Everplay Group plc - Half Year Results
Tue 07:00
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RNS Number : 5468X Everplay Group plc 02 September 2025
2 September 2025
everplay group plc
("everplay" or the "Group")
Half Year Results
· Strong momentum in new release revenues, despite H2 weighting of
major launches
· Strong uplift in margins supported by mix and cost discipline
· Back catalogue publishing rights strategy gaining momentum driving
new revenue streams
· FY 2025 adjusted EBITDA expected to be slightly ahead of current
market expectations
everplay group plc, a leading global independent ("indie") developer and
publisher of premium video games, working simulation games and children's
edutainment apps is pleased to announce its unaudited results for the six
months ended 30 June 2025 ("H1 2025" or the "period").
H1 2025 financial highlights:
Unaudited six months ended 30 June 2025 Unaudited six months ended 30 June 2024 % change
Revenue £72.4m £80.6m (10)%
Gross Profit £33.7m £32.9m 2%
Gross Profit Margin 46.5% 40.8%
Adjusted EBITDA(1) £19.2m £19.4m (1)%
Adjusted EBITDA margin 26.5% 24.1%
Profit Before Tax £14.3m £12.4m 16%
Adjusted Profit Before Tax £19.7m £19.2m 2%
Basic Earnings per Share ("EPS") 7.4p 6.3p 17%
Adjusted EPS(1) 10.5p 10.1p 4%
Operating Cash Conversion(2) 94% 109%
Cash and cash equivalents £59.5m £54.3m 9%
· Group revenues fell 10% in H1 2025 to £72.4 million (H1 2024: £80.6
million) as a result of the timing of license revenues and new title launches
at astragon, declines in physically distributed sales and the very strong
prior year back catalogue performance.
· Adjusted EBITDA remained broadly in line with the same period last
year, though margins increased by 240bps, due to the lack of title impairments
during the period, a favourable title sales mix and continued cost discipline.
The group's performance for the year is, as usual, expected to be second half
weighted.
H1 2025 operational highlights
· Four new games launched during the period (H1 2024: nine) with four
existing games released on additional platforms (H1 2024: four). Revenues from
new releases increased 40% in the period, with a strong pipeline of new
releases due for release in the second half.
· Three acquisitions of IP and back catalogue publishing rights were
completed in the period, at a total cost of less than £8 million, adding
additional revenue streams which will support long-term growth and predictable
ROIs, while further enhancing the strength of the back catalogue. Publishing
rights for 6 further back catalogue titles have been acquired post period end.
· The Group rebranded to everplay group, reflecting the evolution of
the business since its IPO in 2018. The Group now comprises three distinct
divisions operating across complementary markets within the video games and
apps industry.
· Team17:
o Launched four new titles in H1 2025 - Sworn, Jumping Jazz Cats, Nice Day
for Fishing and Date Everything - all receiving excellent review scores and
supported a much improved new release pipeline for FY25.
o The back catalogue again delivered a robust performance, including an
outstanding start to the year for Hell Let Loose, with record player numbers
across all platforms.
o A new instalment of the Hell Let Loose franchise was announced for launch
in 2026: Hell Let Loose Vietnam, taking this iconic franchise with lifetime
revenues of over $100 million into a new theatre of war.
o Several awards won during the period, including for Conscript and Amber
Isle.
o So far in H2 2025, Ritual of Raven has been released. Other new releases
will include Goblin Clean Up and Rogue Point, while Sworn will be fully
released on PC and console, and the first dedicated products will debut on
Switch 2.
· astragon:
o Released two existing titles on new platforms: Railroads Online and Police
Simulator, as well as two DLC packages (H1 2024: two new releases and four
DLCs).
o Aggregate player numbers increased by 5 million during the period, despite
the lack of any new releases.
o Police Simulator: Patrol Officers further benefitted from its release on
Xbox Game Pass (along with Firefighting Simulator: The Squad) and its renewal
on PlayStation Plus.
o H2 sees the launch of the sequel to Firefighting Simulator Firefighting
Simulator: Ignite as well as a brand new first-party IP in the simulation
space - Seafarer: The Ship Sim
· StoryToys:
o Delivered higher revenues driven by over 300+ app updates (H1 2024: 242)
across multiple titles.
o Subscriber numbers continue to grow at single digit levels and lifetime
users hit 266 million.
o For the second year running, StoryToys was included in The Sunday Times'
Best Places to Work in Ireland
o The second half is off to a strong start, with LEGO® Bluey™️,
featuring two of the largest global children's brands. Launched in August with
pre-orders of over 800k, it reached the number one iPad app position overall
in six countries on launch day, including the US, and the number one kids iPad
app position in 117 countries. An edition of LEGO® DUPLO® World by StoryToys
will be launching on Netflix Games.
· The search for a new Group CEO is progressing. The Board will update
the market in due course, with the successful candidate likely starting in
2026.
Interim Dividend
· The Board has declared an interim ordinary dividend of one pence per
share payable on 10 October 2025 to those shareholders on the register as at
12 September 2025. The ex-dividend date is 11 September 2025.
Outlook
· The Group has continued to perform well to date in H2 2025, driven by
the strong performance of the new releases launched in H1 and to date in H2,
as well as ongoing back catalogue momentum.
· New release revenues are expected to be significantly higher in H2
2025 relative to H1 2025, following the launch of new titles including Date
Everything!, LEGO® Bluey™ and Firefighting Simulator: Ignite, along with
the full launch of Sworn and the first dedicated products for Switch 2. In
total, we expect around 10 new games to be released over the course of 2025.
· Following our trading performance to date, the strong line-up of
titles in H2 2025, visibility over license deals later in the year and a
favourable sales mix of titles on margins, the Board expects full year
adjusted EBITDA to be slightly ahead of current market expectations(3).
Frank Sagnier, Interim Executive Chair of everplay, commented:
"It has been a strong start to the year. The improved performance of our new
releases shows the progress we have made continually enhancing our internal
procedures, such as our greenlight process, the quality of our production, and
our marketing approach.
"I am delighted by the strategic progress we have made across the business,
with the Group already benefitting from new revenue streams from our recent IP
and back catalogue acquisitions.
"I would like to thank our people across the Group, led by teams that are
truly focused on making great games and apps for our players. Since spending
more time in the business in my role as Interim Executive Chair, I have been
overwhelmed by the teams' creativity, skills and knowledge.
"Looking ahead, we have a busy second half to deliver, but the team remains
laser-focused on performance and delivering on our strategic priorities to
ensure continued long-term growth for the Group and our shareholders."
(1) Adjusted EBITDA reflects the EBITDA of the Group, without the impact of
acquisition-related costs which vary year on year based on acquisition
activity. In addition, we include the impact of amortisation and impairment of
development costs and publishing rights as this reflects the primary costs
incurred by the Group in generating revenue. The calculation of adjusted
earnings per share is based on the adjusted profit after tax divided by the
weighted average number of shares (either basic or diluted).
(2) Operating cash conversion is defined as cash generated from operating
activities adjusted to add back payments made to satisfy pre-acquisition
liabilities recognised under IFRS 3 "Business Combinations", divided by
earnings before interest, tax, depreciation and amortisation ("EBITDA")
(3)Company-compiled consensus shows FY25 revenues of £173.6 million and
adjusted EBITDA of £46.9 million.
Analyst and institutional investor webcast
A presentation for analysts and institutional investors will be held on
Tuesday, 2 September 2025 at 8.30 a.m. BST. To register for this event please
contact Vigo Consulting on everplay@vigoconsulting.com
(mailto:everplay@vigoconsulting.com) .
Retail investor webcast
A webcast for retail investors will be held on Friday, 5 September 2025 at
1.00 p.m. BST. The presentation will be hosted on the Investor Meet Company
platform. Questions can be submitted at any time during the live presentation.
Investors can sign up via the following link:
https://www.investormeetcompany.com/everplay-group-plc/register-investor
(https://www.investormeetcompany.com/everplay-group-plc/register-investor)
Enquiries:
everplay group plc ir@e (mailto:ir@everplaygroupplc.com) verplaygroupplc.
(mailto:ir@everplaygroupplc.com) com (mailto:ir@everplaygroupplc.com)
Frank Sagnier, Interim Chief Executive Officer
Rashid Varachia, Group Chief Financial Officer and Chief Operating Officer
James Targett, Group Investor Relations Director
Peel Hunt (Nominated Advisor and Joint Corporate Broker) +44 (0)20 7418 8900
Neil Patel / Benjamin Cryer / Kate Bannatyne
Jefferies International Limited (Joint Corporate Broker) +44 (0)20 7029 8000
Philip Noblet / Will Brown
Vigo Consulting (Financial Public Relations) +44 (0)20 7390 0233
Jeremy Garcia / Fiona Hetherington / Anna Stacey
everplay@vigoconsulting.com (mailto:everplay@vigoconsulting.com)
About everplay group plc
everplay group plc (formerly Team17 Group plc) is an award winning and leading
global indie games label developer and publisher of premium video games and
apps, comprising three distinct divisions: Team17, astragon and StoryToys.
Team17 is a games developer, publisher and creative partner for indie
developers around the world, known for iconic IP such as Hell Let Loose, Worms
and Overcooked!. astragon is a leading games publisher, developer and
distributor of sophisticated working simulation games, including Construction
Simulator and Police Simulator, targeting a broad audience from young
enthusiasts to technical experts and casual gamers. Story Toys is a
world-class developer and publisher of educational entertainment apps,
bringing the world's most popular characters, worlds and stories to life for
children under the age of eight, with apps including Disney Colouring World
and LEGO® Bluey™.
Visit www.everplaygroupplc.com (http://www.everplaygroupplc.com/) for more
information or follow us on LinkedIn: everplay group plc
(http://www.linkedin.com/company/everplay-group-plc)
Operational review
Introduction
The Group has performed well in H1 2025, reflecting the strong traction
amongst its new releases and an increasingly robust gaming market backdrop. A
strong improvement in margins was achieved, partly due to there being no title
impairments during the period, but also as a result of a favourable title
sales mix and continued cost discipline.
The Group also made good progress against its strategic priorities in the
period with its first-party IP pipeline building at pace and three
acquisitions completed, adding additional revenue streams and supporting
long-term growth.
In addition, the Group continues to demonstrate its expertise in lifecycle
management, franchise building, first-party IP and third-party IP management,
all of which have helped to deliver stable and scalable revenue streams.
Gaming market overview
Market growth has picked up further in 2025, with Newzoo forecasting total
market growth in 2025 of 3.4% to $188.8 billion, exceeding 2021 levels for the
first time. The launch of Nintendo's Switch 2 has created considerable
excitement in the market, the fastest-selling gaming hardware ever, creating
many future revenue opportunities for everplay. Revenues on Steam grew 11%
during the half, with monthly average users up 11% to ~170m and an all-time
CCU(1) high of over 41 million during the period.
The new release market remains highly competitive: the total number of games
launched on Steam increased 18% during the half to ~9,800. However, the
Group's new releases in the period are tracking ahead of previous benchmarks,
indicating stronger player appetite and the results of the Group's effective
go-to-market strategies.
Strategic Progress
The Group continues to make progress against its core strategic priorities,
namely:
· Increasing the weighting of first-party IP;
· Supporting its core evergreen franchises;
· Developing new revenue streams; and
· Maintaining disciplined capital deployment to ensure continued
long-term growth.
Development of new first-party IP titles are progressing at pace with 10
titles currently under development. These are primarily focused on the Group's
established franchises, including Worms, Hell Let Loose, Golf With Your
Friends, The Escapists, Police Simulator, Firefighting Simulator and
Construction Simulator. These hugely successful franchises have already, in
aggregate, delivered lifetime revenues of over $0.4bn as part of the everplay
group. The first of these new titles, Firefighting Simulator: Ignite, will be
launched later in September, followed by the brand new IP - Seafarer: The Ship
Sim. The eagerly anticipated next instalment of the Hell Let Loose franchise:
Hell Let Loose Vietnam, was announced in August, while Golf With Your Friends
2 will be released in 2026.
The Group has maintained its disciplined approach to capital allocation, with
acquisition of all rights and assets for Hammerwatch, an action-adventure
franchise consisting of four existing titles, from Swedish studio Crackshell.
Hammerwatch joins Team17's first-party IP portfolio, where the team is focused
on leveraging its lifecycle management expertise, while exploring commercial
opportunities and sequels to drive the long-term creativity, growth and value
of the franchise. In addition, the Group has acquired exclusive back catalogue
publishing rights of previously-released third-party games, Settlement
Survival and Operation Tango. These acquisitions further strengthen the back
catalogue while leveraging everplay's best-in-class lifecycle management
skills. Since the end of the half, publishing rights for six more titles have
also been acquired. Aggregate consideration for all transactions year to date
is £11 million.
The Group's M&A and back catalogue strategies provide important new
revenue streams for the Group and reflect everplay's commitment to disciplined
capital deployment on assets which provide predictable ROIs, while further
mitigating the unpredictability of future new games.
Divisional Review
Team17
Revenues declined 4% in the half to £49.3 million (H1 2024: £51.3 million),
with an excellent performance from new releases offset by lower revenues from
the back catalogue.
Team17 launched four new titles in H1 2025 (H1 2024: four), all enjoying
positive review scores. Sworn has continued to perform well following its
launch in Early Access in February and is on track for its full release in H2
2025. Epic NPC Man: Nice Day for Fishing broke pre-order records at Team17,
with exceptional player engagement. Date Everything!, a genre-leading dating
game featuring 100+ dateable characters and a cast of AAA voice talent,
launched in June and has delivered an excellent performance to date, with a
user review score of 95% and peak CCUs of over 14k on Steam alone.
Two existing titles were launched on new platforms (H1 2024: one): Autopsy Sim
on Xbox and PlayStation and Amber Isle on Nintendo Switch.
The back catalogue delivered a robust performance in the context of a very
strong performance in the prior period, despite a more competitive release
landscape. Standout performances included key titles Dredge, Overcooked 2 and
Blasphemous. Golf With Your Friends benefitted from a new DLC. Hell Let Loose
had an outstanding start to the year following its launch on Epic Games Store,
with record player numbers across all platforms of 144,629 CCUs, up 223% from
peak 2024 levels. CCUs increased across each of Team17's top five back
catalogue titles, up an average of 28% on H1 2024 on Steam alone.
Team17 won several awards during the period, including for Conscript (New
Zealand Game Awards: The Guest Plate) and multiple wins for Amber Isle at the
Irish Game Awards.
Strong momentum among the new releases has continued into H2 2025. Ritual of
Raven was launched in August while other exciting launches remain scheduled
for later in the year, including the Early Access launches of Goblin Clean Up
and Rogue Point. In addition, Sworn will be fully released on PC and console,
as well as the first dedicated products for Switch 2.
Looking ahead, the pipeline for third-party titles is strong, while
development plans for new first-party titles remain on track. At Gamescom in
August, Team17 announced the eagerly anticipated new instalment of the Hell
Let Loose franchise due for launch in 2026: Hell Let Loose Vietnam, taking
this iconic franchise, with lifetime revenues of over $100 million, into a new
theatre of war. Golf With Your Friends 2 is also expected to launch in 2026,
with a healthy growth in its inclusion on user wish lists over the last few
months.
As announced in July, the Group completed the acquisition of all rights and
assets for Hammerwatch, an action-adventure franchise consisting of four
existing titles, by Swedish studio Crackshell. Following the integration of
Hammerwatch within Team17, the team will seek to optimise the lifecycle
management of the existing games, while exploring commercial opportunities and
sequels to drive the long-term creativity, growth and value of the franchise.
astragon
Revenues declined 35% during the period to £12.0 million (H1 2024: £18.5
million), due to a reduction in the lower margin, physical sales, the timing
of license deals in the prior period, as well as the phasing of the new
release schedule. The latter is expected to reverse during H2 2025, driving an
overall significantly higher revenue contribution. Despite a quieter release
period, player numbers still increased by five million during the period.
No new titles were launched during H1 2025 (H1 2024: two), though two existing
titles were released on new platforms: Railroads Online and Police Simulator.
Railroads Online also had its physical release. astragon released two DLC
packages (H1 2024: four), including the paid-for vehicle customisation pack
for Police Simulator: Patrol Officers.
Police Simulator: Patrol Officers also benefitted from the release of two
bundles in the period, its release on Xbox Game Pass(4) (along with
Firefighting Simulator: The Squad) and its renewal on PlayStation Plus,
demonstrating the enduring appeal of the franchise four years after launch.
In June 2025, Independent Arts Software was renamed astragon Development as it
continues to support astragon's focus on developing first-party IP games.
First-party IP sales accounted for nearly 90% of astragon revenues in the
half.
H2 2025 sees two major first-party IPs scheduled for release: Firefighting
Simulator: Ignite - the next instalment of the hugely popular franchise - and
Seafarer: The Ship Sim, a brand-new IP where players can embark on the
ultimate maritime experience, taking the helm of a variety of ships while
navigating various seascapes, harbours, and cities.
StoryToys
StoryToys revenues increased 2% to £11.1 million (H1 2024: £10.9 million),
despite no new releases in the period (H1 2024: three). StoryToys released 335
app updates (H1 2024: 242) across multiple titles. Sesame Street Mecha
Builders+ launched on Apple Arcade in April, followed by LEGO® Friends
Heartlake Rush+ in May, bringing the number of StoryToys titles on the
platform to five.
Subscriber numbers at the end of the half saw modest growth year on year to
over 330,000 (H1 2024: over 320,000). Lifetime downloads hit 266 million by
the end of the period. Despite some softness in download numbers across the
industry due to changes in Apple and Google algorithms, StoryToys continued to
drive sales growth through increased conversion and retention.
StoryToys' industry leading position was again recognised in the period,
winning the Bologna Licensing Award 2025 (Best preschool licensing project)
for Sesame Street Mecha Builders and for the second year running, was included
in The Sunday Times' Best Places to Work.
StoryToys welcomed Colum Slevin to the business as Chief Product Officer.
Colum brings a wealth of product experience to the business, including over a
decade working with George Lucas on the Star Wars franchise and was most
recently at EA.
H2 2025 has got off to a very strong start, with LEGO® Bluey. Launched in
August with pre-orders of over 800k, it reached the number one iPad app
position overall in six countries on launch day, including the US and UK, and
the number one kids iPad app position in 117 countries. LEGO® Bluey brings
together the globally iconic Bluey brand with StoryToys' first LEGO app with
system bricks, appealing to a broader children's audience. An edition of
LEGO® DUPLO® World by StoryToys will also be launching on Netflix Games.
Group Financial Review
Group revenues fell 10% in H1 2025 to £72.4 million (H1 2024: £80.6
million), primarily as a result of the timings of license revenues and new
title launches at astragon (which is expected to reverse in the second half of
2025), declines in physically distributed sales and the very strong prior year
back catalogue performance.
Team17 revenues fell modestly by 4% to £49.3 million (H1 2024: £51.3
million), astragon revenues declined 35% to £12.0 million (H1 2024: £18.5
million), while StoryToys revenues increased 2% to £11.1 million (H1 2024:
£10.9 million).
Revenues from first-party IP declined 26% to £25.1 million (H1 2024: £33.7
million), accounting for 35% of Group revenues (H1 2024: 42%). This was driven
by a strong performance at Team17 in the prior period, combined with no new
releases from astragon in H1 2025. Community engagement remained strong,
however, with double digit growth in CCUs for key first-party titles during
the period. Third-party revenues increased modestly to £47.2 million (H1
2024: £46.9 million), with strong contributions from both Dredge and
Blasphemous, as well as the StoryToys portfolio.
Revenues from new releases increased 40% to £8.9 million (H1 2024: £6.3
million), driven by an excellent performance at Team17. The new release
pipelines for both astragon and StoryToys are weighted to H2 2025.
Back catalogue delivered another solid performance against a very strong
comparison in the prior year. Overall, revenues declined 15% to £63.5 million
(H1 2024: £74.3 million), with contributions from over 140 titles.
Group gross profit increased 2% to £33.7 million (H1 2024: £32.9 million),
with gross margin rising 570bps to 46.5%. The primary drivers of the margin
improvement were the lack of title impairments during H1 2025 (H1 2024: £4.6
million), while the timing of new releases led to lower expensed development
costs. Royalties as a percentage of sales were broadly flat at 30.5% (H1 2024:
30.7%).
Total administrative expenses declined 2% to £20.4 million (H1 2024: £20.8
million), driven by lower staff costs, marketing spend and depreciation and
amortisation, partially offset by higher FX costs. Within administrative
expenses are £5.7 million of acquisition-related adjustments, which are
outlined in the table below. In aggregate, these are lower than the prior year
period (H1 2024: £7.2 million) due to the end of acquisition-related
incentive payments present in the prior period.
Alternative Performance Measures adjustments table
Adjusted EBITDA Adjusted Profit after Tax
Unaudited Unaudited Unaudited Unaudited
Six months ended Six months ended Six months ended Six months ended
30-Jun-25 30-Jun-24 30-Jun-25 30-Jun-24
£'000 £'000 £'000 £'000
Profit before Tax 14,310 12,388 14,310 12,388
Development cost amortisation eliminated through FV adjustments (432) (896) (432) (896)
Share based compensation 106 498 106 498
Acquisition related costs & adjustments
Amortisation of acquired intangible assets 5,565 5,721 5,565 5,721
Acquisition related costs - 1,442 - 1,442
Earn out fair value 119 43 119 43
Interest & FX on contingent consideration - 11 - 11
Adjusted profit before tax 19,668 19,207 19,668 19,207
Finance income and costs net of acquisition related costs and adjustments (1,142) (484) n/a n/a
Depreciation and loss on disposal of tangible assets 602 577 n/a n/a
Amortisation of software 67 148 n/a n/a
Adjusted EBITDA 19,195 19,448 - -
Taxation (net of impacts on adjustments) - - (4,615) (4,708)
Adjusted Profit after Tax - - 15,053 14,499
Adjusted basic EPS (pence) - - 10.5 10.1
The positive gross profit performance combined with lower administrative costs
led to a 10% increase in operating profit to £13.4 million (H1 2024: £12.2
million). Adjusted EBITDA(2) was broadly flat at £19.2 million (H1 2024:
£19.4 million) with a 240bps improved in adjusted EBITDA margin to 26.5% (H1
2024: 24.1%), predominantly reflecting the higher gross margin performance.
Net finance income increased to £1.1 million (H1 2024: £0.5 million) due to
higher interest rates and more active cash management. Profit before tax
increased 16% to £14.3 million (H1 2024: £12.4 million). Adjusted profit
before tax increased 2% to £19.7 million (H1 2024: £19.2 million).
The tax charge amounted to £3.7 million (H1 2024: £3.4 million), equating to
an effective tax rate of 25.7% (H1 2024: 27.3%). Adjusted taxation amounted to
£4.6 million (H1 2024: £4.7 million), implying an adjusted effective tax
rate of 23.5% (H1 2024: 24.5%).
Earnings per Share for the period increased 17% to 7.4 pence (H1 2024: 6.3
pence). Adjusted Earnings per Share (adding back share-based compensation
costs, acquisition-related costs and adjustments) increased 4% to 10.5 pence
(H1 2024: 10.1 pence).
The Group remains highly cash generative with an operating cash conversion(3)
of 94% (H1 2024: 109%), and a net inflow of cash from operations of £25.2
million (H1 2024: £32.4 million). Capitalised development costs increased to
£14.3 million (H1 2024: £11.6 million), of which Team17 accounted for £7.7
million (H1 2024: £5.4 million), astragon £4.9 million (H1 2024: £4.7
million) and StoryToys £1.7 million (H1 2024: £1.5 million). After these
costs and acquisition expenditure of £7.5 million, cash and cash equivalents
at the end of the end of the period were £59.4 million (H1 2024: £54.3
million).
Outlook
The Group continues to perform well and has made a solid start to H2 2025,
supported by the continued strong performance of new releases and the ongoing
robust performance of the back catalogue.
New release revenues are anticipated to be significantly higher in H2 2025,
following the launch of titles including Date Everything!, LEGO®
Bluey™ and Firefighting Simulator: Ignite. In total, we expect around 10
new games for 2025.
Following our trading performance to date, the strong line-up of titles in H2
2025, visibility over license deals later in the year and a favourable sales
mix of titles on margins, the Board expects full year adjusted EBITDA to be
slightly ahead of current market expectations5.
The Board firmly believes that with the Indie gaming sector expected to remain
buoyant, together with the future impact of the Group's first-party and
third-party pipeline, as well the positive impact from new revenue streams,
everplay will continue to accelerate revenue growth and profitability over the
medium term.
(1)CCU - Concurrent users - the number of players actively playing a game at
the same time. Data from SteamDB and internal sources
(2)Adjusted EBITDA reflects the EBITDA of the Group in a steady state, without
the impact of acquisition-related costs which vary year on year based on
acquisition activity. In addition, we include the impact of amortisation and
impairment of development costs as this reflects the primary costs incurred by
the Group in generating revenue
(3)Operating cash conversion is defined as cash generated from operating
activities adjusted to add back payments made to satisfy pre-acquisition
liabilities recognised under IFRS 3 "Business Combinations", divided by
earnings before interest, tax, depreciation and amortisation ("EBITDA")
(4)Xbox Game Pass is a subscription service offered by Microsoft, which allows
users to download and play video games. The Game Pass contains a rotating
library of games, remaining accessible as long as the user has an active
subscription.
(5)Company-compiled consensus shows FY25 revenues of £173.6 million and
adjusted EBITDA of £46.9 million.
Condensed Consolidated Income Statement
Unaudited Unaudited
Six months ended Six months ended
30 June 30 June
2025 2024
Note £'000 £'000
Revenue 4 72,357 80,647
Cost of sales (38,694) (47,739)
Gross profit 33,663 32,908
Gross profit % 46.5% 40.8%
Administrative expenses (20,385) (20,824)
Other Income 135 72
13,413 12,156
Operating profit
Share of net (loss) of associates accounted for using the equity method (245) (241)
Finance income 1,236 710
Finance cost (94) (237)
Profit before tax 14,310 12,388
Taxation (3,681) (3,377)
Profit for the period 10,629 9,011
Basic earnings per share 6 7.4 Pence 6.3 Pence
Diluted earnings per share 6 7.4 Pence 6.2 Pence
Basic adjusted earnings per share 6 10.5 Pence 10.1 Pence
Diluted adjusted earnings per share 6 10.4 Pence 10.0 Pence
All results relate to continuing activities.
(1)Adjusted EBITDA is defined as operating profit adjusted to add back
depreciation of property, plant and equipment, amortisation of intangible
assets (excluding capitalised development costs and publishing rights), share
based compensation and all acquisition related adjustments and fees.
Condensed Consolidated Statement of Comprehensive Income
Unaudited Unaudited
Six months ended Six months ended
30 June 30 June
2025 2024
£'000 £'000
Profit for the period 10,629 9,011
Items which might be potentially reclassified to profit or loss:
Exchange difference on translation of foreign operations 3,410 (2,362)
14,039 6,649
Total comprehensive income for the period
Condensed Consolidated Statement of Financial Position
Unaudited Unaudited Audited
30 June 2025 30 June 2024 31 December
2024
Note £'000 £'000 £'000
ASSETS
Non-current assets
Investments in associates 788 721 969
Intangible fixed assets 7 209,152 201,716 196,982
Property, plant and equipment 1,116 1,305 1,080
Right of use assets 2,205 2,834 2,499
Deferred tax assets 430 - 624
213,691 206,576 202,154
Current assets
Trade and other receivables 36,630 35,449 44,534
Current tax assets 2,116 - -
Inventories 1,457 1,121 1,082
Cash and cash equivalents 59,445 54,328 62,877
99,648 90,898 108,493
Total assets 313,339 297,474 310,647
EQUITY AND LIABILITIES
Equity
Share capital 1,458 1,458 1,458
Share premium 137,572 137,572 137,572
Merger reserve (153,822) (153,822) (153,822)
Currency translation reserve 3,022 2,399 (388)
Other reserves 159,296 159,296 159,296
Retained earnings 129,198 106,713 118,450
Total equity 276,724 253,616 262,566
Non-current liabilities
Lease liabilities 1,861 2,484 2,227
Provisions 145 110 127
Deferred tax liabilities 6,373 8,802 6,281
Total non-current liabilities 8,379 11,396 8,635
Current liabilities
Trade and other payables 27,179 31,574 37,040
Current tax liabilities 292 145 1,714
Lease liabilities 765 743 692
Total current liabilities 28,236 32,462 39,446
Total liabilities 36,615 43,858 48,081
Total equity and liabilities 313,339 297,474 310,647
Condensed Consolidated Statement of Changes in Equity
Share capital Share premium Merger Currency translation reserve Other Retained earnings
Reserve reserves Total
Six months to 30 June 2024 Note £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1,458 137,572 (153,822) 4,761 159,296 97,514 246,779
1 January 2024 (audited)
Profit for the period - - - - - 9,011 9,011
Other comprehensive income for the period - - - (2,362) - - (2,362)
Transactions with owners
Share based compensation - - - - - 188 188
Total transactions with owners (restated) - - - - - 188 188
Balance at 1,458 137,572 (153,822) 2,399 159,296 106,713 253,616
30 June 2024 (unaudited)
Six months to 31 December 2024
Balance at 1,458 137,572 (153,822) 2,399 159,296 106,713 253,616
1 July 2024 (unaudited)
Profit for the period - - - - - 11,179 11,179
Other comprehensive expense for the period - - - (2,787) - - (2,787)
Transactions with owners
Purchase of own shares - - - - - (262) (262)
Share based compensation - - - - - 820 820
Total transactions with owners - - - - - 558 558
Balance at 1,458 137,572 (153,822) (388) 159,296 118,450 262,566
31 December 2024 (audited)
Six months to 30 June 2025
Balance at 1,458 137,572 (153,822) (388) 159,296 118,450 262,566
1 January 2025 (audited)
Profit for the period - - - - - 10,629 10,629
Other comprehensive income - - - 3,410 - - 3,410
Transactions with owners
Share based compensation - - - - - 119 119
Total transactions with owners - - - - - 119 119
Balance at 1,458 137,572 (153,822) 3,022 159,296 129,198 276,724
30 June 2025 (unaudited)
Condensed Consolidated Statement of Cash Flows
Unaudited Unaudited
Six months ended Six months ended
30 June 2025 30 June 2024
Note £'000 £'000
Operating activities
Profit before tax 14,310 12,388
Adjustments for:
Depreciation of property, plant and equipment 274 357
Depreciation of right-of-use assets 328 316
Amortisation of intangible fixed assets 7 13,082 12,599
Impairment of intangible fixed assets - 4,610
(Profit)/loss on disposal of intangible assets (1) (42)
Fair value movement in contingent consideration - 42
Share of loss of associates 245 241
Share-based compensation 119 188
Finance income (1,236) (710)
Financial expenses 94 237
Decrease/(increase) in trade and other receivables 9,343 950
(Decrease)/increase in trade and other payables (11,076) 1,417
Decrease/(increase) in inventory (334) (186)
Increase in provisions 18 (3)
Cash generated from operating activities 25,166 32,404
Tax paid (7,158) (4,321)
Net cash inflow from operating activities 18,008 28,083
Cash flow from investing activities
Purchase of property, plant and equipment (303) (238)
Sale of intangible assets - 400
Purchase of Intellectual Property 7 (6,000) (5,000)
Purchase of other intangibles (1,451) -
Capitalisation of development costs 7 (14,345) (11,640)
Interest received 843 710
Net cash outflow from investing activities (21,256) (15,768)
Cash flow from financing activities
Interest paid (94) (168)
Repayment of lease liabilities (333) (310)
Net cash outflow from financing activities (427) (478)
Net (decrease)/increase in cash and cash equivalents (3,675) 11,837
Cash and cash equivalents at beginning of period 62,877 42,824
Effect of exchange rates on cash and cash equivalents 243 (333)
Cash and cash equivalents at end of period 59,455 54,328
Notes to the Condensed Consolidated Interim Financial Statements
1. Nature of operations and general information
everplay group plc and its subsidiaries (The Group) are a global games label,
creative partner and developer of independent ("indie"), premium video games
and developer and publisher of educational entertainment ("edutainment") apps
for children and a leading working simulation games developer and publisher.
2. Basis of preparation
These condensed consolidated interim financial statements have been prepared
in accordance with the AIM rules and UK adopted IAS 34 "Interim Financial
Reporting". The condensed consolidated interim financial statements for the 6
months ended 30 June 2025 should be read in conjunction with the financial
statements of everplay group plc for the year ended 31 December 2024 (the
"Prior year financial statements") which includes the financial results of the
Group prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 ('IFRS') and the
applicable legal requirements of the Companies Act 2006.
The report of the auditors for the prior year financial statements for the
year ended 31 December 2024 was unqualified, did not contain an emphasis of
matter paragraph and did not include a statement under Section 498 of the
Companies Act 2006. The Group's condensed consolidated interim financial
statements is not audited and does not constitute statutory financial
statements as defined in Section 434 of the Companies Act 2006. These
condensed consolidated interim financial statements were approved for issue on
1 September 2025.
Going concern
Management has produced forecasts that have also been sensitised to reflect
plausible downside scenarios which have been reviewed by the directors. These
demonstrate the Group is forecast to generate profits and cash in the year
ending 31 December 2025 and beyond and that the Group has sufficient cash
reserves to enable the Group to meet its obligations as they fall due for a
period of at least 12 months from the release of these results.
As such, the directors are satisfied that the Group has adequate resources to
continue to operate for the foreseeable future. For this reason they continue
to adopt the going concern basis for preparing this interim report.
Accounting policies
The Group's principal accounting policies used in preparing this information
are as stated on pages 70 to 78 of the prior year financial statements. There
has been no change to any accounting policy from the date of the prior year
financial statements.
3. Segmental information
The Group has three different operating segments within the business which are
as follows:
· Games Label - Developing and publishing video games for the
digital and physical market
· Simulation - Developing and publishing simulation games for the
digital and physical market
· Edutainment - Developing educational entertainment apps for
children
The chief operating decision maker ("CODM") of the Group is considered to be
the group executive directors. The CODM review's the Group's internal
reporting in order to assess performance and allocate resources. The CODM
determines the operating segments based on these reports and on the internal
reporting structure.
The CODM considered the aggregation criteria set out within IFRS 8 "Operating
Segments" where two or more operating segments can be combined for reporting
purposes so long as aggregation provides financial statement users with
information to evaluate the business and the environment in which it operates.
After assessing this criteria, the CODM deems it appropriate for all three
operating segments to be aggregated and reported as a single segment. Each
segment develops and publishes games and apps using own and third-party IP
through similar distribution methods with similar margins in the same
regulatory environments. Therefore all figures reported in these results are
reported as a single aggregated reporting segment.
4. Revenue
Whilst the CODM considers there to be only one reportable segment, the
Company's portfolio of games is split between internal IP (those based on IP
owned by the Group) and third-party IP incurring royalties. Therefore to aid
the readers understanding of our results, the split of revenue from these two
categories is shown below:
Revenue by First Party/Third Party IP:
Unaudited Unaudited
Six months ended Six months ended
30 June 2025 30 June 2024
£'000 £'000
First Party IP 25,103 33,702
Third Party IP 47,254 46,945
72,357 80,647
The Group does not provide any information on the geographical location of
sales as the majority of revenue is through third-party distribution platforms
which are responsible for the data of consumers.
5. Alternative Performance Measures
Adjusted EBITDA Adjusted Profit after Tax
Unaudited Unaudited Unaudited Unaudited
Six months ended Six months ended Six months ended Six months ended
30 June 2025 30 June 2024 30 June 2025 30 June 2024
Profit before Tax 14,310 12,388 14,310 12,388
Development cost amortisation eliminated through FV adjustments (432) (896) (432) (896)
Share based compensation 106 498 106 498
Acquisition related costs & adjustments
Amortisation of acquired intangible assets 5,565 5,721 5,565 5,721
Acquisition related costs - 1,442 - 1,442
Earn out fair value 119 43 119 43
Interest & FX on contingent consideration - 11 - 11
Adjusted profit before tax 19,668 19,207 19,668 19,207
Finance income and costs net of acquisition related costs and adjustments (1,142) (484) n/a n/a
Depreciation and loss on disposal of tangible assets 602 577 n/a n/a
Amortisation of software 67 148 n/a n/a
Adjusted EBITDA 19,195 19,448 - -
Taxation (net of impacts on adjustments) - - (4,615) (4,708)
Adjusted Profit after Tax - - 15,053 14,499
Adjusted basic EPS (pence) - - 10.5 10.1
Operating cash conversion
Operating cash conversion is defined as cash generated from operating
activities as per the statement of cash flows activities adjusted to add back
payments made to satisfy pre-acquisition liabilities recognised under IFRS 3
"Business Combinations", divided by earnings before interest, tax,
depreciation and amortisation ("EBITDA").
Unaudited Unaudited
Six months ended Six months ended
30 June 2025 30 June 2024
Cash generated from operating activities 25,166 32,404
EBITDA 26,853 29,756
Adjusted operating cash conversion 94% 109%
6. Earnings per share
The calculation of the basic earnings per share is based on the profits
attributable to the shareholders of everplay group plc divided by the weighted
average number of shares in issue. The weighted average number of shares takes
into account treasury shares held by the Team17 Employee Benefit Trust. The
diluted earnings per share uses the same calculation however the number of
shares in issue are adjusted to include shares considered to be dilutive under
the treasury stock method. An option is considered to be dilutive when the
total proceeds per option is less than the average share price for the period.
At 30 June 2025, 414,403 (30 June 2024: 404,985) outstanding share options had
met the required performance criteria.
Unaudited Unaudited
Six months ended Six months ended
30 June 2025 30 June 2024
Profit for the period £'000 10,629 9,011
Weighted average number of shares 143,992,626 143,969,944
Weighted average diluted number of shares 144,407,029 144,374,929
Basic earnings per share (pence) 7.4 6.3
Diluted earnings per share (pence) 7.4 6.2
The calculation of adjusted earnings per share is based on the profit
attributable to shareholders as shown in the Statement of Comprehensive Income
plus additional costs added back during the year as shown in note 5. The
weighted average diluted number of shares includes share options considered to
be dilutive under the treasury stock method as described above.
Unaudited Unaudited
Six months ended Six months ended
30 June 2025 30 June 2024
Adjusted profit for the period £'000 15,053 14,499
Weighted average number of shares 143,992,626 143,969,944
Weighted average diluted number of shares 144,407,029 144,374,929
Adjusted basic earnings per share (pence) 10.5 10.1
Adjusted diluted earnings per share (pence) 10.4 10.0
7. Intangibles
Customer and Developer Relationships
Development costs Acquired Apps £'000 £'000 Publishing rights Other Intangibles £'000 Total
£'000 Brands £'000 Goodwill £'000
£'000 £'000
Cost
At 1 January 2024 (audited) 84,080 80,617 37,218 5,019 1,020 107,123 315,077
-
Additions 11,640 - - - - - - 11,640
Disposals (1,678) - - - - - - (1,678)
Translation on foreign operations (469) (67) (875) 34 - (24) (1,344) (2,745)
At 30 June 2024 (unaudited) 93,573 80,550 36,343 5,053 - 996 105,779 322,294
Additions 13,322 - - - 2,000 - - 15,322
Translation on foreign operations (628) (66) (855) 51 - (24) (1,242) (2,764)
At 31 December 2024 (audited) 106,267 80,484 35,488 5,104 2,000 972 104,537 334,852
Additions 14,305 6,000 - - 1,388 63 - 21,756
Translation on foreign operations 1,085 91 1,178 (444) - 32 77 2,019
At 30 June 2025 (unaudited) 121,657 86,575 36,666 4,660 3,388 1,067 104,614 358,627
Amortisation
At 1 January 2024 (audited) 49,008 22,985 10,409 1,003 - 801 20,879 105,085
Charge for the period 6,783 3,057 2,486 253 - 20 - 12,599
Impairment 4,610 - - - - - - 4,610
Disposals (1,321) - - - - - - (1,321)
Translation on foreign operations (110) (12) (259) 7 - (21) - (395)
At 30 June 2024 (unaudited) 58,970 26,030 12,636 1,263 - 800 20,879 120,578
Charge for the period 6,699 3,055 2,430 247 256 70 - 12,757
Impairment 132 - - 3,572 - - 991 4,695
Translation on foreign operations (171) (14) (329) 22 - (21) 353 (160)
At 31 December 2024 (audited) 65,630 29,071 14,737 5,104 256 849 22,223 137,870
Charge for the period 7,059 3,118 2,447 - 391 67 - 13,082
Translation on foreign operations 320 23 528 (444) - 28 (1,932) (1,477)
At 30 June 2025 (unaudited) 73,009 32,212 17,712 4,660 647 944 20,291 149,475
Net Book Value
At 30 June 2025 (unaudited) 48,648 54,363 18,954 - 2,741 123 84,323 209,152
At 1 January 2025 (audited) 40,637 51,413 20,751 - 1,744 123 82,314 196,982
Acquisition of Hammerwatch
On 23 June 2025, Team 17 Digital Limited acquired the Hammerwatch IP from
Crackshell AB, a company incorporated in Sweden, for a maximum payment of
£10,000,000. This purchase consists of an initial cash payment of £6,000,000
and a further £4,000,000 conditional on future performance. The purchase is
not being accounted for as a business combination under IFRS 3 due to the
assets being acquired comprising a single group of assets under the
concentration test as set out in "Definition of a Business (Amendments to IFRS
3)" by the IASB issued in October 2018. As such the acquisition is considered
an asset purchase under IAS 38 - Intangible Assets and is treated as a Brand
asset. The initial cash payment of £6,000,000 is treated as consideration and
capitalised in full. Any payments conditional on future performance have been
classified as remuneration and will be expensed as incurred.
8. Share Capital
Unaudited Unaudited Audited
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Authorised, allotted, called up and fully paid
145,848,677 (2024: 145,803,620) ordinary shares of 1p each 1,458 1,458 1,458
1,458 1,458 1,458
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