- Robust first half
- Full year profit to be slightly ahead
- Strong release slate in second half
Independent games developer Everplay (EVPL:AIM) reiterated expectations for full year profit to be slightly ahead of market expectations after delivering a robust first half performance.
Mr Market appeared relatively pleased, sending the shares up a further 1.7% to 412.8p, extending the strong 80% advance in 2025, reflecting a string of positive trading updates and persistent analyst upward revisions to earnings.
Interim executive chairman Frank Sagnier commented: ‘It has been a strong start to the year. The improved performance of our new releases shows the progress we have made continually enhancing our internal procedures, such as our greenlight process, the quality of our production, and our marketing approach.
‘I am delighted by the strategic progress we have made across the business, with the group already benefitting from new revenue streams from our recent IP and back catalogue acquisitions.’
SLIGHTLY ABOVE CONSENSUS
Revenue for the six months to 30 June fell 10% to £72.4 million driven by a 35% fall in the simulation game division astragon as no new titles were released compared with two in the prior year. Despite this, aggregate player numbers increased by five million in the half.
Adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) was broadly flat, although margins increased to 26.5% reflecting the lack of impairments.
Pre-tax profit increased 16% to £14.3 million, and cash increased 9% to £59.5 million.
Looking to the second half, given the strong slate of title releases and favourable sales mix, the board said it expects full year adjusted EBITDA to be slightly ahead of the £46.9 million pencilled in by analysts.
Shore Capital’s Katie Cousins commented: ‘Content remains key, in our view and the group continues to leverage its intellectual property.
‘Notably, the title “Hell Let Loose” will be expanded to “Hell Let Loose: Vietnam” in 2026, along with new content expected for the original game. This is a good example of prolonging the lifecycle of a franchise and capitalising on existing fan bases. We would expect this strategy to be replicated across its portfolio, along with small acquisitions, such as the three recently made, to strengthen the back catalogue and support development and publishing capabilities.’
The company said the search for a new CEO is progressing with the successful candidate likely starting in 2026.
