Playtika Holding Corp. (PLTK, Financial) revealed its first-quarter revenue reached an unprecedented $706 million, surpassing market expectations of $699.67 million. This achievement marks a milestone, with the revenue figures being the highest in the company's history. The notable performance was largely attributed to their extensive portfolio, complemented by the successful acquisition of SuperPlay.
CEO Robert Antokol expressed pride in what he termed a historic quarter. As Playtika celebrates its fifteenth anniversary, the enduring appeal of its flagship game, Bingo Blitz, was evident as it posted record revenue gains over the period.
CFO Craig Abrahams underscored the significant progress in their direct-to-consumer (DTC) business, emphasizing its consistent record-breaking performance. Playtika has identified this as a key area for future expansion, which will also help maintain balanced margins as they continue to pour resources into developing growth-oriented titles.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Playtika Holding Corp (PLTK, Financial) is $7.79 with a high estimate of $16.00 and a low estimate of $5.50. The average target implies an upside of 43.54% from the current price of $5.43. More detailed estimate data can be found on the Playtika Holding Corp (PLTK) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Playtika Holding Corp's (PLTK, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Playtika Holding Corp (PLTK, Financial) in one year is $10.78, suggesting a upside of 98.53% from the current price of $5.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Playtika Holding Corp (PLTK) Summary page.
PLTK Key Business Developments
Release Date: February 27, 2025
- Annual Revenue: $2.549 billion, down 0.7% year-over-year.
- Annual GAAP Net Income: $162.2 million, compared to $235 million in 2023.
- Annual Credit Adjusted EBITDA: $757.7 million, a 9% decline year-over-year.
- Annual Net Income Margin: 6.4%, compared to 9.2% in 2023.
- Annual Credit Adjusted EBITDA Margin: 29.7%, compared to 32.4% in 2023.
- Annual Free Cash Flow: $396.8 million, a 9.1% decline year-over-year.
- Quarterly Revenue (Q4): $650.3 million, up 4.8% sequentially and 1.9% year-over-year.
- Quarterly GAAP Net Income (Q4): Negative $16.7 million, compared to $39.3 million in Q3.
- Quarterly Credit Adjusted EBITDA (Q4): $183.9 million, down 6.7% sequentially and 2.6% year-over-year.
- Quarterly Net Income Margin (Q4): Negative 2.6%, compared to 6.3% in Q3.
- Quarterly Credit Adjusted EBITDA Margin (Q4): 28.3%, compared to 31.8% in Q3.
- Direct-to-Consumer Revenue (Q4): $174.6 million, up 0.1% sequentially and 8% year-over-year.
- Bingo Blitz Revenue (Q4): $159.1 million, down 0.5% sequentially and up 5.8% year-over-year.
- Slotomania Revenue (Q4): $118.4 million, down 7.9% sequentially and 13.5% year-over-year.
- Solitaire Grand Harvest Revenue (Q4): $72.5 million, down 8.1% sequentially and 4.3% year-over-year.
- SuperPlay Revenue (Q4): Approximately $48 million, with minus $10 million in adjusted EBITDA losses.
- Cash and Cash Equivalents: $565.8 million as of December 31.
- Average Daily Paying Users (DPU): Increased 12.6% sequentially and 10.8% year-over-year.
- Average Daily Active Users (DAU): Increased 5.3% sequentially and decreased 7% year-over-year.
- Average Revenue Per Daily Active User (ARP DAU): $0.89, flat sequentially and up 11.3% year-over-year.
- 2025 Revenue Guidance: Between $2.8 billion and $2.85 billion.
- 2025 Adjusted EBITDA Guidance: Between $715 million and $740 million.
- 2025 Capital Expenditures: Expected to be $95 million.
- Effective Tax Rate for 2025: Estimated at 35%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Playtika Holding Corp (PLTK, Financial) completed the largest acquisition in its history by acquiring SuperPlay, adding two strong game franchises to its portfolio.
- The company plans to launch three new games, including Disney Solitaire, which has shown promising early metrics.
- Playtika Holding Corp (PLTK) has initiated a quarterly dividend and authorized a buyback program, demonstrating a commitment to returning capital to shareholders.
- The company's direct-to-consumer platforms generated $174.6 million in revenue, marking an 8% year-over-year increase.
- Playtika Holding Corp (PLTK) is transitioning its portfolio to focus on growth titles, with expectations for new studios to become positive EBITDA contributors by 2026.
Negative Points
- Playtika Holding Corp (PLTK) reported a 0.7% decline in annual revenue and a 9% decline in credit adjusted EBITDA year-over-year.
- The company's net income margin decreased to 6.4% from 9.2% in the previous year.
- Slotomania experienced a disappointing quarter with a 13.5% year-over-year revenue decline due to game economy issues.
- Operating expenses increased by 13.7% year-over-year, primarily driven by the acquisition of SuperPlay.
- The company anticipates near-term pressure on EBITDA due to the cost of scaling growth titles and ongoing declines in its slot portfolio.
