Financial · March 1, 2024

Annual Report and Financial Statements 2024

Published by Everplay

Summary

Everplay Group PLC, formerly known as Team17 Group PLC, achieved a significant financial recovery and strategic reorganization during the 2024 fiscal year. Following a loss in 2023, the Group returned to profitability with a profit before tax of £25.3 million and record revenues of £166.6 million, representing 5% year-over-year growth. This performance significantly outpaced the broader gaming market’s 0.6% growth, driven primarily by a resilient back catalogue that contributed 86% of total revenue. While the core Team17 publishing division saw a slight revenue decline, the astragon simulation and StoryToys edutainment divisions grew by 22% and 25% respectively, highlighting the success of the Group’s diversified multi-divisional structure. The Group’s financial position strengthened considerably, ending the period with £62.9 million in cash and a 97% operating cash conversion rate. This liquidity supports a transition toward high-quality first-party IP, which now accounts for 37% of total sales, and provides capital for future M&A activity. Operational highlights include the management of over 140 active titles and a subscription base for StoryToys exceeding 337,000 active users. Strategically, the Group underwent a major leadership transition and corporate rebranding in early 2025 to reflect its evolved identity as a platform-agnostic developer and publisher. Governance and sustainability remained central to the 2024 agenda, with the Group reporting significant progress in diversity and environmental targets. Women now hold approximately 50% of leadership roles, and the mean gender pay gap was reduced by over 7%. Despite recording impairments related to the underperformance of the US-based mobile unit "The Label," the Group reinstated a dividend of 2.7 pence per share. Looking toward 2025, the Group maintains a positive outlook with a pipeline of at least ten new title launches and a continued focus on lifecycle management and disciplined cost control.

From the report

# everplay group plc, a leading global independent (“Indie”) games label developer and publisher of premium video games and apps. Team17 is a global games label, creative partner and developer of premium video games. Find out more on pages 18-21 # astragon / Working Sim astragon is a leading developer, publisher and distributor of sophisticated ‘working’ simulation games. Find out more on pages 22-25 # ent StoryToys is a world-class developer and publisher of educational entertainment apps for children. Find out more on pages 26-29 everplay group plc Annual Report and Financial Statements 2024 # Strategic Report - 01 Highlights of the Year - 02 Chair’s Statement - Group Chief Executive Officer’s Review - 08 Group Strategy and Business Model - 10 Group Chief Financial Officer’s Review - 18 Divisional Reports - 30 ESG Report: People - 34 ESG Report: Environmental - 36 Principal Risks & Uncertainties # Corporate Governance - 39 Board Engagement with Stakeholders - 42 Board of Directors - 44 Directors’ Report - 46 Corporate Governance Report - 52 Audit Committee Report - 54 Remuneration Committee Report # Group Financial Statements - 59 Independent Auditors’ Report to the Members of everplay group plc - 65 Consolidated Statement of Profit or Loss - 66 Consolidated Statement of Comprehensive Income - 67 Consolidated Statement of Financial Position - 68 Consolidated Statement of Changes in Equity - 69 Consolidated Statement of Cash Flows - 70 Notes to the Consolidated Financial Statements

c - 65 Consolidated Statement of Profit or Loss - 66 Consolidated Statement of Comprehensive Income - 67 Consolidated Statement of Financial Position - 68 Consolidated Statement of Changes in Equity - 69 Consolidated Statement of Cash Flows - 70 Notes to the Consolidated Financial Statements # Company Financial Statements - 100 Company Statement of Financial Position - 101 Company Statement of Changes in Equity - 102 Notes to the Company Financial Statements # Highlights # 2024 Operational Highlights - Double-digit growth in first-party IP revenues, which contributed 3 7 % to Group revenues (FY 2023: 3 5 % ). 10 first-party IP projects are in the development pipeline, based both on established and new IP and to launch mostly in 2026 and 2027. - The back catalogue had another excellent year across all divisions, with revenues up 2 7 % , demonstrating the outstanding lifecycle management skills as well as the dependable nature of the portfolio strategy. Over 130 titles contributed to back catalogue revenues during the period, spread across a wide range of genres and release years. - Community engagement was very strong across our key titles. In particular, Hell Let Loose enjoyed record revenues (five years after its original launch), with peak concurrent users (CCU) during the year over 9 0 % higher yoy, increasing to over 140,000 following its release on the Epic platform at the year end.

gement was very strong across our key titles. In particular, Hell Let Loose enjoyed record revenues (five years after its original launch), with peak concurrent users (CCU) during the year over 9 0 % higher yoy, increasing to over 140,000 following its release on the Epic platform at the year end. - astragon delivered strong revenue growth of 2 2 % . Strong contributors for the year included the popular Police Simulator and Construction Simulator franchises, the latter of which saw the introduction of a Year 2 Season Pass. Revenue growth for the year was supported by the release of two new games (FY 2023: three) – including Construction Simulator 4 – as well as the physical distribution of Farming Simulator 25 in Germany, five existing first and third-party IP games released on additional platforms and 12 paid DLCs4 (FY 2023: 16). - StoryToys delivered another excellent year of growth, up 2 5 % . It launched three new licensed app titles (FY 2023: three), including LEGO® DUPLO® Peppa Pig in addition to 531 app updates (FY 2023: 327) across existing titles supporting subscriptions. Active subscribers continue to grow and now exceed 337,000, with 11 million active users and the number of total lifetime downloads now exceeding 240 million (FY 2023: 200 million).

EGO® DUPLO® Peppa Pig in addition to 531 app updates (FY 2023: 327) across existing titles supporting subscriptions. Active subscribers continue to grow and now exceed 337,000, with 11 million active users and the number of total lifetime downloads now exceeding 240 million (FY 2023: 200 million). - Team17 revenues fell by 5 % , as some new titles failed to meet management expectations and some titles were moved into 2025. There was, on the other hand, strong double-digit growth in the back catalogue. More than 80 titles contributed towards back catalogue revenues in period, encompassing over 1,200 Digital Revenues Lines (up from over 900 in FY 2023), with stand-out performers including first-party IPs Hell Let Loose and Golf With Your Friends and third-party IPs Overcooked! and Dredge. Team17 launched 10 new games (FY 2023: 11) in the period, with 11 existing games released on new platforms (FY 2023: five). - The Group continued to strengthen its Board and Senior Management Team. Rashid Varachia joined in October 2024 in the newly-created joint role of Group Chief Financial Officer and Chief Operating Officer. Harley Homewood joined as Group Product Acquisition Director, with responsibility for innovating our publishing models, leading our IP acquisition strategy as well as strategic involvement in our greenlight process. - Following the year end, in January, the Group rebranded to everplay group plc, reflecting the evolution of the business following its IPO in 2018. # 2024 Financial Highlights # £166.6m # Revenue (FY 2023: £159.1m) # +5% Revenue Growth (FY 2023: +12%) # £69.4m # Gross Profit (FY 2023: £57.5m) # 41.6% # Gross Margin (FY 2023: 36.1%)

ebranded to everplay group plc, reflecting the evolution of the business following its IPO in 2018. # 2024 Financial Highlights # £166.6m # Revenue (FY 2023: £159.1m) # +5% Revenue Growth (FY 2023: +12%) # £69.4m # Gross Profit (FY 2023: £57.5m) # 41.6% # Gross Margin (FY 2023: 36.1%) # £43.5m (+46%) # Adjusted EBITDA1 (FY 2023: £29.9m) # 26.1% # Adjusted EBITDA Margin1 (FY 2023: 18.8%) # £25.3m # Profit Before Tax (FY 2023: £1.1m loss) # £43.4m (+51%) # Adjusted Profit Before Tax1 (FY 2023: £28.7m) # 14.0p # Basic EPS (FY 2023: 2.6p loss) # 24.1p (+38%) # Adiusted EPSa (FY 2023: 17.5p) # 97% # Operating Cash Conversion3 (FY 2023: 87%) # £62.9m # Cash & Cash Equivalents (FY 2023: £42.8m) - 1. A full description of Alternative Performance Measures, the rationale for their use, and reconciliation between adjusted and reported statutory measures can be found within the Group Chief Financia Officer’s Report on page 15. - Adjusted profit before tax excludes acquisition-related costs and adjustments, amortisation and impairment of acquired intangible assets recognised as a result of business combinations, share-based compensation and one-off restructuring costs from the statutory measure whilst adding back development cost amortisation eliminated through acquisition fair value adjustments - Adjusted profit after tax excludes the same items as adjusted profit before tax removing corporation tax net of any tax effects on these items.

f restructuring costs from the statutory measure whilst adding back development cost amortisation eliminated through acquisition fair value adjustments - Adjusted profit after tax excludes the same items as adjusted profit before tax removing corporation tax net of any tax effects on these items. - Adjusted EBITDA can be calculated from adjusted profit after tax by adding back all remaining finance income and costs, tax, depreciation, amortisation and impairment except for those on development costs and publishing rights. - 2. The calculation of adjusted earnings per share is based on the adjusted profit after tax divided by the weighted average number of shares (either basic or diluted). - 3. Operating cash conversion is defined as cash generated from operating activities adjusted to add back payments made to satisfy pre-acquisition liabilities recognised under IFRS 3 “Business Combinations”, divided by earnings before interest, tax, depreciation and amortisation (“EBITDA”) - 4. Downloadable content.

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Words: 73,018
Format: PDF
Type: Financial

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