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]

Financial Data and Key Metrics Changes - Playtica achieved a historic milestone in Q1 2025, generating over $700 million in revenue, the highest quarterly revenue in the company's history, reflecting an 8.6% sequential increase and an 8.4% year-over-year increase [5][15] - Credit adjusted EBITDA was $167.3 million, down 9% sequentially and down 9.9% year over year, while 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, driven by Bingo Blitz, June's Journey, and Solitaire Grand Harvest [15][16] Business Line Data and Key Metrics Changes - Bingo Blitz achieved record revenues of $162.4 million, up 2.1% sequentially and 3.1% year over year, driven by marketing initiatives such as the American Idol campaign [19][20] - Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year over year, with ongoing challenges leading to a decline in performance [21] - Dice Dreams generated $78.6 million, reflecting a 124.5% sequential increase due to successful integration and marketing efforts [22] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased 12.5% sequentially and 2.3% year over year to 9 million, while Average Revenue Per Daily Active User (ARPDAU) decreased 2.2% sequentially but increased 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 is committed to enhancing its D2C business, targeting 30% of revenue from this segment, and believes it has significant growth potential [16][40] - The company is making strategic capital allocation decisions to enhance its financial profile and capitalize on evolving mobile gaming dynamics [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by Slotomania and emphasized the need for significant changes to stabilize the game [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 11.5% year over year, driven by revenue growth and increased amortization expenses from the acquisition of Superplay [24] - Operating expenses increased 19.4%, primarily due to increased performance marketing spending [24] - As of March 31, the company had approximately $514.3 million in cash, cash equivalents, and short-term investments [25] Q&A Session Summary Question: Discussion on Disney Solitaire's marketing plans - Management expressed excitement about Disney Solitaire's strong start and noted that Q1 typically has the highest marketing spend, which will decline sequentially [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 for Playtica and expressed confidence in its growth potential, noting that the company is well-prepared for current market changes [39][41]

Financial Data and Key Metrics Changes - The company achieved record revenue of over $700 million in Q1 2025, marking the highest quarterly revenue in its history, reflecting the strength of its mobile games portfolio [5] - Revenue for the first quarter was $706 million, an 8.6% sequential increase and an 8.4% year-over-year increase [15] - Credit adjusted EBITDA was $167.3 million, down 9% sequentially and down 9.9% year-over-year [15] - GAAP net income was $30.6 million, down 42.3% year-over-year [15] - Direct-to-consumer (D2C) revenue reached $179.2 million, up 2.6% sequentially and 4.5% year-over-year [15] Business Line Data and Key Metrics Changes - Bingo Blitz achieved revenue of $162.4 million, up 2.1% sequentially and 3.1% year-over-year, driven by marketing initiatives [19] - Slotomania revenue was $111.8 million, down 5.5% sequentially and 17.4% year-over-year, indicating ongoing challenges [21] - Dice Dreams generated $78.6 million in revenue, reflecting a 124.5% sequential increase due to successful integration [22] - The D2C business is expected to grow, with many games performing above the targeted 30% revenue contribution from D2C [16] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased by 12.5% sequentially and 2.3% year-over-year to 9 million [26] - Average Daily Pay 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 while launching new slot games to regain market share [9][35] - There is a commitment to enhancing the D2C business, which is seen as a significant growth opportunity [40] - The company is prioritizing product investments and operational improvements to stabilize underperforming titles [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by Slotomania and emphasized the need for significant changes to stabilize the game [34] - The company is optimistic about the growth potential of its casual game franchises and plans to continue investing in them [13] - Marketing expenses are expected to decline sequentially, which may help improve margins in the future [17] Other Important Information - The company has approximately $514.3 million in cash, cash equivalents, and short-term investments as of March 31 [25] - An agreement was made to extend the maturity of the revolving credit facility from March 2026 to September 2027 [26] 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 [29][30] Question: Future of Slotomania and new slot game plans - Management acknowledged ongoing declines in Slotomania and emphasized the importance of stabilizing the game while also launching a new slot game to regain market share [33][34] Question: Updates on D2C initiatives and overall mix - Management highlighted the D2C business as a significant advantage and expressed confidence in its growth potential, indicating that they are well-prepared for current market changes [39][40]

Core Insights - Playtika Holding (PLTK) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.11 per share, and down from $0.15 per share a year ago, representing an earnings surprise of -18.18% [1] - The company posted revenues of $706 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.25%, and up from $651.2 million year-over-year [2] - Playtika shares have declined approximately 21.8% since the beginning of the year, compared to a -4.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $706.14 million, and for the current fiscal year, it is $0.55 on revenues of $2.83 billion [7] - The estimate revisions trend for Playtika is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Gaming industry, to which Playtika belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, GDEV Inc. (GDEV), is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year change of +280% [9]