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Investing.com -- Everplay Group Plc (LON:EVPL) on Wednesday reported a strong result for 2024, with a rebound in profitability, improved margins, and a positive outlook for 2025, sending its shares up by over 15%.
The company, which rebranded from Team17 Group Plc earlier in the year, posted revenue of £166.6 million, surpassing market expectations.
Adjusted EBITDA came in at £43.5 million, also exceeding analyst forecasts. The company’s financial strength was further underscored by its cash balance of £62.9 million.
Everplay’s results were ahead of consensus expectations, with revenue exceeding forecasts by 3.3% and adjusted EBITDA by 4.6%.
The company’s focus on first-party intellectual property played a crucial role in its growth, contributing 37% of total revenue.
Everplay has 10 first-party IP projects in development, set to launch in 2026 and 2027, reinforcing its strategic focus on long-term profitability. Its back catalogue, a key revenue driver, grew by 27% during the year.
Astragon, the company’s simulation game division, recorded a 22% increase in revenue, while StoryToys, its children’s educational app unit, saw a 25% rise, supported by a growing subscriber base.
However, Team17’s revenue declined by 5%, impacted by underperforming new releases and project delays into 2025. The company also announced a goodwill impairment of £4.6 million related to The Label acquisition, in addition to a £4.7 million impairment on development costs.
Everplay has a pipeline of around 10 new titles and apps for 2025, with the majority expected to launch in the second half of the year. This includes two first-party IP titles.
The company said it remains confident in delivering a stronger 2025, with performance expected to be marginally ahead of current market expectations.
RBC Capital Markets projects an adjusted EBITDA of £44.2 million for the year, slightly above the market consensus of £44 million.
In a move that signals confidence in its financial position, Everplay announced a maiden final dividend of 2.7 pence per share, marking the beginning of a progressive dividend policy.
Analysts at RBC noted that while the dividend reflects the board’s optimism about the company’s outlook, they are also keen to see how it aligns with Everplay’s focus on mergers and acquisitions.
CEO Steve Bell stated that the company’s performance in 2024 was a testament to its ability to balance growth with financial discipline.
"As we begin our first year under the new name of everplay, I am excited about the incredible slate of games we have lined up for 2025, and some important innovations in our business model. Allied with stringent cost controls, we are confident that these will deliver results our shareholders expect," Bell said in a statement.