- Q2 2025 Revenue: $696 million, reflecting a 1.4% sequential decline but 11% year-over-year growth.
- Adjusted EBITDA: $167 million, a 0.2% sequential drop and 12.6% year-over-year decline.
- Slotomania Revenue: Fell 22.7% sequentially, prompting strategic adjustments to stabilize the game’s economy.
- Disney Solitaire Performance: Reached $100 million annual run rate revenue, driving SuperPlay portfolio growth.
Game Performance Highlights
The company's performance is a mixed bag. While Slotomania, their flagship title, saw a concerning 22.7% sequential revenue decline, management reassured investors that strategic changes are underway to stabilize the game's economy. On the positive side, Disney Solitaire, a new launch, achieved a remarkable $100 million annual run rate revenue, contributing significantly to the SuperPlay portfolio's growth. Bingo Blitz continued its strong performance, setting new records for direct-to-consumer (D2C) revenue. June's Journey demonstrated sequential stability, offering a glimmer of resilience in a fluctuating market.
D2C Focus and Growth Strategies
Playtika is doubling down on its D2C strategy, recognizing its importance in mitigating margin pressure. The company has revised its long-term target for D2C revenue to 40% from 30%, reflecting confidence in this channel's potential. This shift is driven by favorable changes in the App Store payment landscape, including fee adjustments. The company also highlighted increased iOS usage in the U.S. and accelerated D2C penetration. To fuel future growth, Playtika is investing in new game development, expanding its advertising business, and prioritizing category-leading games. "We are laser-focused on driving sustainable long-term growth," CEO Robert Antokol stated on the earnings call, emphasizing the company's commitment to innovation and strategic expansion.
Revised Guidance and Valuation
Despite the challenges, Playtika maintained its adjusted EBITDA guidance for 2025, projecting a range of $715 million to $740 million. However, the company did revise its revenue guidance downward to $2.7 billion to $2.75 billion, from the previous range of $2.8 billion to $2.85 billion. These revisions reflect the company's cautious approach in the face of a dynamic market. Analyts now forecast next year's revenue growth at 3.0%. Playing with the provided valuation metrics, we see a P/E ratio of 16.67, a P/B ratio of -16.4, and a P/S ratio of 0.54. The EV/EBITDA multiple stands at 7.58, suggesting that the market is pricing in potential challenges for the company in the near term.