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(Sharecast News) - Everplay Group said in an update on Wednesday that it expected to deliver adjusted EBITDA for the year ended 31 December in line with market expectations, representing a double-digit increase on the prior year, after strong trading through the second half and into the start of 2026.
The AIM-traded games developer and publisher said performance in the second half was supported by a significant uplift in new release revenues, double-digit growth in first-party intellectual property revenues, an improved back catalogue performance and the signing of anticipated licence deals.
Trading over the Black Friday and festive period was described as strong, with momentum continuing into January.
Revenue growth in the second half was led by Team17 and StoryToys, driven by new releases including Date Everything!, SWORN and LEGO Bluey, as well as new licensing agreements with Netflix.
The group said Astragon took a strategic decision during the period to exit its low-margin physical distribution business, which had a limited impact on adjusted EBITDA but created a headwind for reported revenues.
As a result, group revenue for 2025 was expected to be broadly flat year-on-year, although excluding physical sales the business delivered mid-single-digit organic revenue growth.
Everplay said the second half was also an active period for acquisitions, which remain a core strategic priority.
During the period the group acquired a 20% minority stake in Super Media Group and secured long-term publishing rights to ten previously released titles, including Heavenly Bodies, Placid Plastic Duck Simulator and Spiritfall.
The group said its strong cash balance continues to provide flexibility for further strategic activity.
Looking ahead, Everplay said its 2026 release schedule was set to be one of its most extensive to date, including new instalments of first-party franchises such as Hell Let Loose: Vietnam and Golf With Your Friends 2, alongside expanded partnerships with platforms including Netflix.
"I am delighted to be starting my tenure as group CEO at such an exciting time for Everplay," said group chief executive Mikkel Weidder.
"The group delivered strong growth in adjusted EBITDA in 2025, and its acquisition strategy is gaining positive traction, with more to come.
"I am very excited about the outlook for the group in 2026, supported by an exceptional new release schedule, new partnerships and our dependable back catalogue."
Everplay said it expected to announce its full-year results for 2025 in late March, adding that company-compiled consensus forecasts pointed to revenue of 173.6m and adjusted EBITDA of 48.5m for the year.
At 1219 GMT, shares in Everplay Group were down 2.7% at 324p.
Reporting by Josh White for Sharecast.com.