Team17 Group PLC ((GB:EVPL)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Team17 Group PLC, now rebranded as everplay group, presented a balanced narrative of achievements and challenges. The company showcased strong new game releases and strategic acquisitions, alongside a positive growth outlook for the second half of the year. However, these positives were tempered by revenue declines and challenges faced by astragon, impacting overall performance.
Strong H1 Performance and Dividend Declaration
The first half of the fiscal year saw solid revenue performance, bolstered by new game releases and a robust back catalog. The company reported an EBITDA of GBP 19.2 million and declared a 1p per share dividend for H1, underscoring its commitment to returning value to shareholders.
Successful New Game Releases
Team17’s new game releases have been a significant success, with “Date Everything!” achieving over 500,000 units sold. The company also announced new IPs, including “Hell Let Loose Vietnam” and “Ranger’s Path,” contributing to a strong release performance with four new games.
Strategic M&A and Rebranding
The group completed three acquisitions of IP and back catalog publishing rights, marking a strategic expansion. The rebranding to everplay group reflects its evolution, particularly after acquiring StoryToys and astragon, positioning the company for future growth.
Positive Outlook for H2 and Beyond
The outlook for the second half of the year is optimistic, with expectations of stronger performance driven by new releases and licensing deals. The company anticipates significant revenue growth for the full fiscal year 2025, especially during the Christmas period.
Strong Performance in StoryToys and Astragon
StoryToys reported a growth in subscriber numbers to over 330,000, while the launch of LEGO Bluey saw preorders exceed 800,000. Astragon is expected to contribute to strong H2 revenue with new IPs, despite earlier challenges.
Revenue Decline
The group experienced a 10% decline in revenue to GBP 72.4 million, primarily due to timing issues with licensing revenue and new title launches at astragon. This decline highlights the challenges faced in maintaining consistent revenue streams.
Astragon Revenue Decline
Astragon reported a significant 35% revenue decline, attributed to the phasing of new releases between H1 and H2 and a reduction in lower margin physical sales revenue.
Back Catalog Performance
The back catalog revenue declined by 15%, a reflection of the exceptionally strong performance in the previous year that was difficult to replicate.
Forward-Looking Guidance
Looking ahead, everplay group plc has set ambitious targets for growth. The company aims for a return to growth for the full year FY ’25, with a focus on strategic M&A and a potential future target of GBP 100 million in adjusted EBITDA. The adjusted EBITDA margin improved to 26.5%, and the adjusted EPS increased to 10.5p, indicating a strong financial position.
In summary, the earnings call for Team17 Group PLC, now everplay group, highlighted a mix of strong achievements and notable challenges. The company remains optimistic about future growth, driven by strategic acquisitions and new game releases, despite facing revenue declines in certain areas. The positive sentiment for H2 and beyond suggests a promising outlook for investors.