Astragon Entertainment has made the strategic decision to exit its low-margin physical distribution business completely. The Düsseldorf-based company distributed physical copies of its own games, as well as those of partners such as Focus Entertainment, Microids and Giants Software.
A trading update from parent company everplay reveals that astragon Entertainment made the strategic decision to completely exit its low-margin physical distribution business in the second half of 2025. "While the effect on adjusted EBITDA is limited, it does provide a headwind to revenues," reads the announcement. For years, astragon has distributed selected titles of its own as boxed versions, as well as games from partners such as Focus Entertainment, Giants Software, Microids and Team17 - including the immensely successful Farming Simulator series. Farming Simulator 25 (Landwirtschafts-Simulator 25) was the best-selling physical PC game of 2025, while the Farming Simulator 25: Highlands Fishing Expansion was the third-bestselling game (according to GfK).
Revenue growth at everplay has been strong for Team17 and StoryToys in H2 2025, supported by the successful performance of new releases including Date Everything!, Sworn, and Lego Bluey, as well as new licence agreements with Netflix. Accordingly, group revenues for FY 2025 are expected to remain broadly similar to those of the previous year. Excluding physical sales, the group achieved mid-single-digit organic revenue growth for FY 2025. everplay: "As a result, the Group expects to deliver adjusted EBITDA for FY 2025 in line with current market expectations, a double-digit increase versus FY 2024. Company-compiled consensus shows FY 2025 revenues of £173.6 million and adjusted EBITDA of £48.5 million. The Group expects to announce its full year results for FY 2025 in late March."
Mikkel Weidder, Group Chief Executive Officer, commented: "I am delighted to be starting my tenure as Group CEO at such an exciting time for everplay. The Group delivered strong growth in adjusted EBITDA in FY 2025, and its acquisition strategy is gaining positive traction, with more to come. I am very excited about the outlook for the Group in FY 2026, supported by an exceptional new release schedule, new partnerships and our dependable back catalogue. I am enjoying getting to know the talented, passionate and committed teams at everplay, and look forward to meeting and updating all our key stakeholders on the Group's progress in due course."
