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Investing.com -- Shares of Everplay Group (LON:EVPL) surged over 11% on Wednesday after the video game developer said it expects full-year results to come in “slightly ahead” of current market expectations.
In the latest trading update, Everplay reported a strong first half (1H) of fiscal 2025, highlighting solid sales from new releases and resilience in its back catalogue.
The game “Date Everything!” saw “excellent” sales, while recent titles “Sworn” and “Nice Day for Fishing” also performed well.
The company guided to results modestly above consensus, which currently forecasts revenue of £171 million and adjusted EBITDA of £45 million. Analysts at Jefferies expect consensus EBITDA estimates to rise by 3–5%.
Jefferies, which has a Buy rating and 360p price target on Everplay, described the update as “particularly encouraging at this stage of the year given the normal 2H weighting.”
“Our positive stance on Everplay reflects the potential upside from a focus on higher return on investment (ROI) first-party IP and return to low-investment game-development model; net cash and the prospect of accretive M&A and dividends,” the analysts added.
Despite a recent rally, Everplay shares still trade at a discount to historical levels, at about 9x full-year 2025 (FY25) estimated EV/EBITDA versus the 17x long-term average.
Alongside the trading update, Everplay announced the acquisition of the Hammerwatch intellectual property from Swedish studio Crackshell, adding another first-party franchise to its growing portfolio.
It also acquired exclusive publishing rights for “Settlement Survival” and “Operation Tango.”
The combined cash consideration for all three assets was under £8 million.