Everplay interim revenues fall, FY adjusted EBITDA seen 'slightly ahead' of expectations

(Sharecast News) - Games developer Everplay Group, formerly known as Team17, said on Tuesday that full-year adjusted underlying earnings were expected to be slightly ahead of current market expectations, despite reporting a decline in interim revenues. Revenues fell 10% to £72.4m in the six months ended 30 June, due to the timing of license revenues, new title launches, declines in physically distributed sales and the "very strong" prior year back catalogue performance, while adjusted underlying earnings slipped by 1% to £19.2m. However, gross profits rose 2% to £33.7m, as did adjusted pre-tax profits at £19.7m, while gross profit margins improved from 40.8% to 46.5%.

The FTSE 250-listed group highlighted that new release revenues were expected to be "significantly higher" in H2. Following its trading performance to date, the strong line-up of titles in H225, visibility over license deals later in the year and a favourable sales mix of titles on margins, Everplay expects full year adjusted EBITDA to be "slightly ahead" of current market expectations

Interim executive chairman Frank Sagnier said: "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.

"Looking ahead, we have a busy second half to deliver, but the team remains laser-focused on performance and delivering on our strategic priorities to ensure continued long-term growth for the Group and our shareholders."

Reporting by Iain Gilbert at Sharecast.com