Everplay Group (LSE:EVPL) published its full-year results on Tuesday, reporting an 11% increase in adjusted EBITDA as the interactive entertainment company reaffirmed its guidance for the current financial year.
The group generated revenue of £166m in FY25, unchanged year on year and consistent with the figures outlined in its previous trading update. Adjusted EBITDA rose 11% to £48.5m, broadly matching both the earlier update and market expectations of £48.7m. Profitability improved, with the EBITDA margin expanding by 3.1 percentage points to 29.2%.
Cash balances declined to £51.9m from £62.9m, reflecting dividend payments and merger and acquisition activity during the year. The board proposed a final dividend of 1.9p per share, taking the total dividend for the year to 2.9p.
Looking ahead to FY26, management said the company had made a good start to the year and confirmed expectations for performance to align with current market forecasts.
Consensus estimates suggest revenue and EBITDA will rise by around 5% and 4% respectively to £174m and £50.5m. The company’s 2026 release schedule includes at least 15 new games and applications, with a minimum of five expected to be first-party titles.
Revenue from first-party intellectual property declined 9% year on year and accounted for 34% of total revenue, reflecting softer performance at astragon, where first-party titles represent 83% of the portfolio. However, first-party IP revenue increased 11% during the second half of FY25. Third-party intellectual property revenue grew 4%, supported by major franchises from Team17 and StoryToys.
Back catalogue revenue declined 13% and represented 75% of overall sales, though it remained 10% higher than FY23 levels. In contrast, revenue from new releases jumped 80%, led by strong performance from Date Everything!.
By division, Team17 delivered record revenue of £106m, an 8% increase year on year. Astragon revenue fell 33%, or 18% excluding the exit from physical distribution, as both new releases and back catalogue sales underperformed expectations. StoryToys reported a 25% revenue increase, supported by strong demand for LEGO Bluey.
The company expects capitalised development spending and amortisation to rise in FY26, with development investment projected to peak during the year. This reflects a strategic shift toward expanding first-party intellectual property, with the resulting royalty savings expected to offset some of the margin pressure.
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