Everplay group published its audited results for the full fiscal year on Tuesday, reporting steady top-line receipts alongside improved operating profitability.
For FY25 the company posted revenue of £166m, unchanged from the prior year and consistent with prior trading update commentary. Adjusted EBITDA rose by 11% to £48.5m, a figure that mirrors the company’s trading update and sits in line with consensus expectations of roughly £48.7m. Operating margins expanded by 3.1 percentage points to reach 29.2%.
Cash resources were reported at £51.9m at year-end, down from £62.9m in the comparable period. Management attributed the decline to new dividend distributions and merger and acquisition activity during the year. The board proposed a final dividend of 1.9p, taking the total dividend for FY25 to 2.9p.
Looking ahead, Everplay confirmed that it expects to deliver FY26 results in line with current market forecasts and said the new fiscal year had started well. Consensus analyst forecasts incorporated into market models project revenue growth of approximately 5% to £174m and adjusted EBITDA of £50.5m, a 4% increase over FY25.
Everplay’s development slate for 2026 was detailed with at least 15 new game and app releases pencilled in, including a minimum of five first-party titles. Management signalled that capitalised development costs and amortisation will rise in FY26 as investment in first-party intellectual property ramps up, with capital development expected to peak during the year. The company said royalty savings should help counterbalance the margin impact of the higher capital spend.
On the revenue mix, first-party IP fell 9% year-on-year to comprise 34% of total revenues, a decline the company linked to weaker performance at astragon, which itself has an 83% first-party mix. The company noted, however, that first-party IP rose 11% in the second half of FY25 versus the first half. Third-party IP revenues were up 4%, led by franchises from Team17 and StoryToys.
Back catalogue sales declined by 13% and made up 75% of total revenues for the year, though these receipts remained 10% higher than FY23. New releases experienced a sharp uptick, increasing 80% year-on-year, with Date Everything! highlighted as a standout performer.
Segment performance among the group’s labels varied. Team17 delivered record revenues of £106m, growing 8% year-on-year. Astragon saw revenues fall by 33% overall; when excluding the effect of the company’s exit from physical distribution, astragon’s decline was 18%, with both new releases and back catalogue sales underperforming management’s expectations. StoryToys recorded a 25% revenue increase, helped by demand for LEGO Bluey.
Management reiterated the company’s FY26 outlook is intended to be consistent with market expectations while noting the business will absorb higher capital development and amortisation as it prioritises growth in first-party content.
Analyst note: The results show a mix of stabilising revenue, expanding margins and a shift toward heavier investment in owned IP, which will influence capital expenditure and amortisation profiles in the coming year.