Core Viewpoint - Playtika Holding (PLTK) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for August 7, and if the reported figures exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for Playtika's quarterly earnings is projected at $0.15 per share, reflecting a year-over-year decrease of 34.8%, while revenues are expected to reach $710.65 million, marking a 13.3% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.08%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Playtika is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.64%, suggesting a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Playtika was expected to post earnings of $0.11 per share but only achieved $0.09, resulting in a surprise of -18.18% [13]. - Over the past four quarters, Playtika has only beaten consensus EPS estimates once [14]. Predictive Indicators - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3; however, Playtika currently holds a Zacks Rank of 3, making it challenging to predict a beat [10][12]. - The predictive power of the Earnings ESP model is significant primarily for positive readings, and a negative Earnings ESP does not necessarily indicate an earnings miss [9][11].

Company Overview - Playtika Holding Corp. is a leader in mobile gaming entertainment and technology, with a diverse portfolio of game titles [3] - Founded in 2010, Playtika was one of the pioneers in offering free-to-play social games on social networks and mobile platforms [3] - The company is headquartered in Herzliya, Israel, and has a global workforce [3] Financial Results Announcement - Playtika will release its financial results for the second quarter of 2025 before U.S. markets open on August 7, 2025 [1] - A conference call to discuss the results will be held on the same day at 5:30 AM Pacific Time, 8:30 AM Eastern Time [1] Investor Relations - A live webcast of the conference call and earnings release materials will be available on Playtika's Investor Relations website [2]

Core Insights - Playtika Holding Corp. (NASDAQ: PLTK) is characterized as a high-margin and cash-flow generative company, with a liveops model that allows its legacy games to remain profitable for years, evidenced by a trailing twelve months (TTM) EBITDA margin of 23.3% [1] Company Overview - The company has a strong cash flow generation capability, which is crucial for sustaining its operations and growth [1] - Playtika's liveops model is a key factor in maintaining profitability over an extended period for its legacy games [1] Financial Performance - The TTM EBITDA margin of 23.3% indicates a solid profitability level, reflecting the company's effective cost management and revenue generation strategies [1]

Group 1 - Playtika's World Series of Poker (WSOP) app has renewed its partnership with professional poker player Samantha Abernathy, who will serve as an ambassador and feature a custom in-game avatar [2][5] - Abernathy, who started as a casual player on the WSOP app, has transitioned to competing in high-stakes games and has cashed in at 31 poker tournaments, highlighting her growth in the poker community [3][4] - The WSOP app aims to appeal to both amateur and professional players, with Abernathy's involvement expected to enhance the platform's energy and reinforce its position as a leading destination for poker enthusiasts [5] Group 2 - The WSOP app is recognized as one of the world's most downloaded free poker games, offering various game modes, tournaments, and special events, while rewarding players with virtual prizes [6] - Playtika, founded in 2010 and headquartered in Herzliya, Israel, is a leader in mobile gaming entertainment and technology, with a mission to entertain through diverse gaming experiences [8]

Core Viewpoint - Small-cap stocks are currently undervalued, presenting potential investment opportunities, especially those offering high dividend yields ranging from 8.3% to 17.1% [2] Group 1: Small-Cap Stocks Overview - The valuation gap between the S&P 500 and S&P 600 is at its widest since the late 1990s, suggesting small-cap stocks are significantly cheaper [2] - The article discusses five small-cap stocks with attractive dividend yields, indicating a potential for high returns despite their current low valuations [2] Group 2: Playtika Holding (PLTK) - Playtika, a mobile game developer, has a dividend yield exceeding 8% but has not raised its payout recently, indicating a decline in earnings and sales [4][5] - Analysts project a 32% increase in profits for 2024, despite the company's struggles in the competitive mobile gaming market [6] - Playtika's valuation is low at 6 times forward earnings, but there are concerns about its growth prospects [7] Group 3: Carlyle Secured Lending (CGBD) - CGBD is a business development company focused on U.S. middle-market companies, primarily investing in first-lien debt [8][9] - Recent earnings reports have shown disappointing results, with an increase in non-accrual loans and a stagnant base dividend of 40 cents per share [10][11] - CGBD shares are trading at a 16% discount to net asset value, but operational challenges raise concerns about future dividend sustainability [12] Group 4: Bain Capital Specialty Finance (BCSF) - BCSF provides financing solutions to a diverse range of companies, with a significant portion of its investments in first-lien debt [13][14] - The company has maintained its regular dividend but has introduced special dividends, raising concerns about future dividend coverage due to declining net investment income projections [16][17] - Analysts expect BCSF's dividend ratios to be high, leaving little room for error in case of operational difficulties [17] Group 5: Two Harbors Investment Corp. (TWO) - TWO operates in the mortgage REIT sector, focusing on mortgage servicing rights and agency residential mortgage-backed securities [19][22] - The company has faced significant share price declines, resulting in a high yield of over 17%, but recent litigation charges could impact its book value and dividend sustainability [24][25] - TWO's current dividend rate of 45 cents per share is at risk due to the potential impact of litigation on earnings available for distribution [25] Group 6: Franklin BSP Realty Trust (FBRT) - FBRT is a mortgage REIT focused on commercial mortgage-backed securities, with a significant portion of its portfolio in multifamily properties [26][27] - The company is trading at a 28% discount to book value, with a low P/E ratio based on 2026 earnings estimates, indicating potential value [28] - Concerns exist regarding the stability of its dividend, as the payout has not changed since 2021, and market conditions could necessitate a review of the dividend policy [29][30]

Core Points - The WSOP app is offering a sweepstakes for a Las Vegas poker vacation, running until July 31, 2025, with nine winners selected over nine weeks [1][2] - The sweepstakes is open to new users who download and register on the app, as well as returning players who log in [2] - The WSOP app aims to connect the excitement of live poker with the convenience of online play, enhancing user engagement [2] Company Overview - Playtika Holding Corp. is a leader in mobile gaming entertainment, founded in 2010, and is known for its free-to-play social games [5] - The company is headquartered in Herzliya, Israel, and has a global presence with employees in various offices [5] - The WSOP app is one of the most downloaded free poker games worldwide, featuring multiple game modes and tournaments [3][5]

Group 1: Campaign Overview - Slotomania launched a new 360 campaign titled "Vegas in PJs" on April 29, 2025, which showcases the comfort of playing from home while enjoying IGT's iconic land-based slots [1] - The campaign features a TV spot that highlights players enjoying the gaming experience in their pajamas, emphasizing the blend of comfort and excitement [1] - The commercial includes a real Slotomania player who won a trip to Europe, reinforcing the community engagement aspect of the campaign [1] Group 2: Strategic Partnership - Slotomania's campaign underscores its strategic partnership with IGT, aiming to bring the thrill of real casino slots to mobile and web players [1] - The collaboration focuses on popular IGT titles such as Cleopatra II, Regal Riches, and Wheel of Fortune Lucky Coins On Stage, enhancing the gaming experience for users [1] - This partnership is positioned to strengthen Slotomania's market presence as a leading destination for immersive at-home gaming [1] Group 3: Company Background - Slotomania is recognized as the world's 1 free-to-play slots game, developed by Playtika LTD, a subsidiary of Playtika Holding Corp [2] - The platform offers a wide variety of high-quality slot games with engaging graphics and sound effects, catering to a large community of slot enthusiasts [2] - Playtika, founded in 2010, is a leader in mobile gaming entertainment, known for pioneering free-to-play social games on various platforms [3]

Core Insights - Slotomania, a leading social casino mobile game from Playtika, has launched a new free-to-play slot game called Wheel of Fortune Lucky Coins On Stage, which features 5 reels and 40 paylines, bringing the iconic game show experience to mobile devices [1][3] - The game is part of a marketing campaign that includes a TV spot titled "Vegas in PJs," showcasing the excitement of IGT's land-based slots and featuring a real player who won a trip to Europe [2] - The new game aims to enhance player engagement by combining traditional casino elements with innovative mobile gameplay, appealing to both existing fans and new players [3] Company Overview - Slotomania is recognized as the world's 1 free-to-play slots game, offering a wide variety of high-quality slot games with advanced graphics and sound effects, and a strong community of slot enthusiasts [4] - Playtika Holding Corp., the parent company of Slotomania, is a leader in mobile gaming entertainment, known for pioneering free-to-play social games on various platforms since its founding in 2010 [5]

Core Insights - Playtika Holding (PLTK) reported revenue of $706 million for the quarter ended March 2025, reflecting an 8.4% increase year-over-year and a surprise of +1.25% over the Zacks Consensus Estimate of $697.25 million [1] - The company's EPS was $0.09, down from $0.15 in the same quarter last year, resulting in an EPS surprise of -18.18% compared to the consensus estimate of $0.11 [1] Financial Performance Metrics - Playtika's shares have returned +9.9% over the past month, while the Zacks S&P 500 composite increased by +11.3%, indicating a performance in line with the broader market [3] - Average Daily Payer Units (DPUs) were reported at 0.39 million, exceeding the average estimate of 0.33 million from two analysts [4] - The Average Daily Payer Conversion rate was 4.3%, slightly above the estimated 4% [4] - Monthly Active Users (MAUs) reached 31.8 million, surpassing the average estimate of 29.4 million [4] - Daily Active Users (DAUs) were reported at 9 million, exceeding the estimated 8.36 million [4] - Average Revenue Per Daily Active User (ARPDAU) was $0.87, below the estimated $0.91 [4]

Financial Data and Key Metrics Changes - Playtica achieved record revenue of over $700 million in Q1 2025, marking the highest quarterly revenue in the company's history, reflecting strong performance in mobile games [5] - Revenue increased by 8.6% sequentially and 8.4% year over year, while credit adjusted EBITDA was $167.3 million, down 9% sequentially and 9.9% year over year [15] - GAAP net income was $30.6 million, down 42.3% year over year [15] - Direct to consumer (D2C) business generated $179.2 million, up 2.6% sequentially and 4.5% year over year [15] Business Line Data and Key Metrics Changes - Bingo Blitz achieved record revenues, generating $162.4 million, up 2.1% sequentially and 3.1% year over year, driven by marketing initiatives like the American Idol campaign [21] - Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year over year, attributed to ongoing game economy issues [21][9] - Dice Dreams generated $78.6 million, up 124.5% sequentially, reflecting successful integration and strong execution [22] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased by 12.5% sequentially and 2.3% year over year to 9 million, while Average Daily Paying Users (DPU) increased by 15% sequentially and 26.2% year over year to 390,000 [26] - Average Revenue Per Daily Active User (ARPDAU) decreased by 2.2% sequentially but increased by 7.4% year over year to $0.87 [26] Company Strategy and Development Direction - The company is focusing on stabilizing Slotomania and launching new slot games, with plans to integrate renowned IGT slot titles into its platform [9][10] - Playtica aims to enhance its D2C business, targeting 30% of revenue from this segment, with several games performing above this mark [16] - The company is committed to strategic capital allocation to enhance financial profiles and capitalize on evolving mobile gaming dynamics [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Slotomania but emphasized efforts to stabilize the game and launch new titles to regain market share [33] - The company expects marketing expenses to decline sequentially in the coming quarters, which typically occurs after the first quarter [18][29] - Management reaffirmed guidance for the year, anticipating that declines in slot games will be offset by growth in casual titles [19] Other Important Information - Cost of revenue increased by 11.5% year over year, while operating expenses rose by 19.4%, primarily due to increased performance marketing spending [24] - Cash, cash equivalents, and short-term investments totaled approximately $514.3 million as of March 31 [25] Q&A Session Summary Question: Discussion on Disney Solitaire's marketing plans - Management expressed excitement about Disney Solitaire's strong launch and indicated that marketing expenses typically decline after Q1, balancing capital allocation across games with the best ROI [28][29] Question: Future of Slotomania and new slot game plans - Management acknowledged ongoing issues with Slotomania and emphasized the importance of stabilizing the game while also planning to launch a new slot game to regain market share [32][33] Question: D2C channel updates and overall mix - Management highlighted the importance of D2C as a significant growth opportunity and indicated readiness to adapt to market changes, emphasizing that D2C is already a part of their strategy [39][41]