everplay group (EVPL) H2 2024 earnings summary

Executive summary

• FY 2024 delivered strong financial results, with revenue up 5% to £167m and adjusted EBITDA up 46% to £44m, demonstrating a robust recovery and the effectiveness of the new strategy.

• The group rebranded to everplay plc, clarifying its structure and supporting future growth, while maintaining the distinct identities and strategies of Team17, astragon, and StoryToys.

• A maiden dividend of 2.7p per share was proposed, reflecting strong cash generation and a year-end cash position of £62.9m.

• Double-digit growth in first-party IP (now 37% of revenue) and a 27% increase in back catalog revenue, driven by portfolio strategy and lifecycle management.

• Strengthened management team with new CFO/COO and Group Product Acquisition Director.

Financial highlights

• Revenue grew 5% year-over-year to £167m, outperforming the market's 0.6% growth.

• Adjusted EBITDA rose 46% to £43.5m; adjusted EPS increased 38% to 24.1p.

• Gross profit increased 21% to £69m and gross margin improved by 5.5% to 41.6%, driven by lower title impairments and improved cost controls.

• Cash conversion ratio was 97%, supporting the proposed maiden dividend.

• Total admin costs fell 21% due to lower goodwill impairment; net finance income improved to £1.2m.

Outlook and guidance

• At least 10 new games and apps are in the 2025 pipeline, including two first-party IP titles, with launches weighted to H2.

• Expectation to deliver FY 2025 results marginally ahead of current market expectations, with continued growth in revenue, profits, and margins.

• Midterm outlook includes further growth from first-party IP, new revenue streams, and M&A, with a focus on portfolio breadth and lifecycle management.

• Initial results from new title Sworn are encouraging; solid back catalogue performance anticipated.

• Progressive dividend policy introduced, with board and investor support.