Everplay Group Plc

Group revenue decreased 8% year-on-year to GBP 66.9 million in H1, or down 5% on an underlying basis excluding the exit from astragon physical distribution. Gross profit fell 29% to GBP 23.9 million and gross margin declined to 35.7%. Adjusted EBITDA was GBP 9.2 million, with basic adjusted EPS of 3.7p; adjusted profit after tax was GBP 5.3 million and adjusted profit before tax was GBP 8.8 million. Cash ended the half at GBP 57.1 million, and operating cash conversion was 128%. Looking ahead, management expects revenues and adjusted EBITDA for full-year 2026 to be materially ahead of current market expectations; Rashid said brokers had raised adjusted EBITDA guidance by 10%, and management expects adjusted EBITDA margin to be broadly in line with FY 2025. Capitalized development expenditure is expected to be GBP 35 million to GBP 40 million for full-year 2026, and gross margin is expected to improve significantly in H2 and be within the recent historical range for the full year.

Mikkel Weider emphasized that H1 was about preparing the business for a very strong second half, with organizational changes, a leaner astragon structure, and more focus on first-party IP. He framed the strategy around four pillars: building first-party IP road maps, nurturing third-party games, maintaining disciplined cost control, and pursuing selective organic and inorganic growth. His tone was upbeat and confident, especially around the shooter category, saying Hell Let Loose and Wardogs give everplay a chance to become a market leader in that segment.

Rashid Varachia said the H1 revenue decline mainly reflected lower new-release revenue because the group’s major 2026 launches were pushed into H2. He cited gross profit of GBP 23.9 million, gross margin of 35.7%, adjusted EBITDA of GBP 9.2 million, admin costs of GBP 22.3 million, and capitalized development costs of GBP 16.4 million across 20% more titles than H1 2025. He also noted cash of GBP 57.1 million, operating cash conversion of 128%, and full-year capitalized development spend expected at GBP 35 million to GBP 40 million, with first-party IP representing around two-thirds of that spend.

Analysts focused on how much upside is embedded in the raised outlook, and Rashid said brokers had lifted adjusted EBITDA guidance by 10% with a similar increase in revenue expectations, while management said they felt confident in achieving the new targets. Questions also centered on Wardogs, including revenue recognition and the Bulkhead relationship; Rashid said the deal uses standard publisher terms and that early-access revenue is recognized on day of launch under standard policy. Management also addressed 2027, saying the underlying business can grow next year, and said cash generation should beat full-year guidance unless cash is deployed into M&A.