Playtika(PLTK) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Results Overview Playtika reported resilient Q2 2025 results with revenue growth and strategic DTC platform expansion Executive Summary & Key Financial Highlights Playtika's Q2 2025 revenue increased 11.0% YoY, driven by game success and an increased DTC target | Metric | Q2 2025 ($ million) | Sequential Change | YoY Change | | :-------------------------------- | :------------------ | :---------------- | :--------- | | Revenue | 696.0 | (1.4)% decrease | 11.0% increase | | DTC Platforms Revenue | 175.9 | (1.8)% decrease | 1.3% increase | | GAAP Net Income | 33.2 | 8.5% increase | (61.7)% decrease | | Adjusted Net Income | 6.5 | (82.0)% decrease | (91.4)% decrease | | Adjusted EBITDA | 167.0 | (0.2)% decrease | (12.6)% decrease | | Cash, cash equivalents, and short-term investments | 592.1 | N/A | N/A | - CEO Robert Antokol highlighted the success of Disney Solitaire, achieving a $100 million annual run-rate revenue, and strong engagement and DTC revenue growth for Bingo Blitz[3] - CFO Craig Abrahams stated the DTC business remains a key priority, with the long-term target for DTC revenue increased from 30% to 40% to balance margins[3] Selected Operational Metrics and Business Highlights Q2 2025 operational metrics show increased paying users and a new game launch planned for Q4 2025 | Metric | Q2 2025 | Sequential Change | YoY Change | | :-------------------------- | :------ | :---------------- | :--------- | | Average Daily Paying Users | 378K | (3.1)% decrease | 26.8% increase | | Average Payer Conversion | 4.3% | Consistent with Q1 2025 | Up from 3.7% in Q2 2024 | | Bingo Blitz Revenue | $160.2M | (1.3)% decrease | 2.9% increase | | Slotomania Revenue | $86.5M | (22.7)% decrease | (35.4)% decrease | | June's Journey Revenue | $69.1M | 0.3% increase | (7.4)% decrease | - Playtika announced plans for the global launch of a new slot game, Jackpot Tour, in Q4 2025[6] Quarterly Dividend Announcement Playtika's Board declared a $0.10 per share cash dividend payable in October 2025 - A cash dividend of $0.10 per share of common stock was declared, payable on October 10, 2025, to stockholders of record as of September 26, 2025[7] Financial Outlook The company revised its full-year 2025 revenue guidance while maintaining Adjusted EBITDA guidance - Playtika revised its full-year revenue guidance to between $2.70 billion and $2.75 billion[8] - The company maintained its Adjusted EBITDA guidance for the full year between $715 million and $740 million[8] Conference Call Information Playtika management will host a conference call on August 7, 2025, to discuss Q2 results - A conference call will be held on August 7, 2025, at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) to discuss the results, accessible via investors.playtika.com[9] Company Information This section provides an overview of Playtika and important disclosures regarding forward-looking statements About Playtika Holding Corp. Playtika is a leading mobile gaming entertainment and technology company, founded in 2010 in Israel - Playtika (NASDAQ:PLTK) is a mobile gaming entertainment and technology market leader with a diverse portfolio of game titles[11] - Founded in 2010, Playtika was an early pioneer in offering free-to-play social games on social networks and mobile platforms[11] - The company is headquartered in Herzliya, Israel, and operates with employees across offices worldwide, aiming to entertain globally[11] Forward-Looking Statements & Risk Factors Forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ - The press release contains forward-looking statements regarding business strategy, plans, and future operations, identified by words like 'anticipate,' 'expect,' 'will,' and 'would'[12][13] - These statements are based on current expectations and projections, but involve significant risks, uncertainties, and assumptions, including those discussed in SEC filings[14] - Important factors that could cause actual results to differ include reliance on third-party platforms, dependence on a limited number of games/users for revenue, ability to compete, integrate acquisitions, retain players, develop new products, significant indebtedness, and geopolitical events[15][16] Consolidated Financial Statements This section presents Playtika's balance sheets, income statements, and cash flow statements for Q2 2025 Consolidated Balance Sheets Total assets slightly decreased, total liabilities decreased, and stockholders' deficit improved as of June 30, 2025 | Metric | June 30, 2025 ($ million) | December 31, 2024 ($ million) | Change ($ million) | | :-------------------------------- | :-------------------------- | :---------------------------- | :----------------- | | Total Assets | 3,636.8 | 3,639.2 | (2.4) | | Total Liabilities | 3,724.6 | 3,770.3 | (45.7) | | Total Stockholders' Deficit | (87.8) | (131.1) | 43.3 | | Cash and cash equivalents | 500.9 | 565.8 | (64.9) | | Short-term investments | 91.2 | 0 | 91.2 | Consolidated Statements of Comprehensive Income Q2 2025 revenues increased YoY, but net income and comprehensive income significantly decreased | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenues | $696.0M | $627.0M | $69.0M | | Total costs and expenses | $586.3M | $486.3M | $100.0M | | Income from operations | $109.7M | $140.7M | $(31.0)M | | Interest and other, net | $64.6M | $20.4M | $44.2M | | Net income | $33.2M | $86.6M | $(53.4)M | | Comprehensive income | $56.5M | $81.8M | $(25.3)M | | Net income per share (diluted) | $0.09 | $0.23 | $(0.14) | Consolidated Statements of Cash Flows For H1 2025, operating cash flow decreased, while investing cash flow improved and financing cash flow increased | Metric | Six months ended June 30, 2025 ($ million) | Six months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Cash flows from operating activities | 164.9 | 180.1 | (15.2) | | Net cash used in investing activities | (135.2) | (449.1) | 313.9 | | Net cash used in financing activities | (97.0) | (48.6) | (48.4) | | Dividend paid | (74.9) | (37.1) | (37.8) | | Payment for share buyback | (10.9) | 0 | (10.9) | | Net change in cash, cash equivalents and restricted cash | (65.3) | (319.9) | 254.6 | Calculation of Free Cash Flow Free Cash Flow for the first six months of 2025 was $119.6 million, a slight decrease YoY | Metric | Six months ended June 30, 2025 ($ million) | Six months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Free Cash Flow | 119.6 | 122.1 | (2.5) | Non-GAAP Financial Measures Reconciliation This section reconciles non-GAAP measures like Adjusted EBITDA and Adjusted Net Income to GAAP equivalents Non-GAAP Measures Explanation Adjusted EBITDA and Adjusted Net Income are non-GAAP measures used to assess operating performance, not GAAP substitutes - Adjusted EBITDA and Adjusted Net Income are non-GAAP measures used to indicate operating performance and should not be seen as alternatives to GAAP net income or cash flow from operating activities[25] - Adjusted EBITDA is defined as net income before interest expense/income, taxes, depreciation, amortization, impairment, stock-based compensation, contingent consideration, acquisition expenses, and other items[26] - Adjusted Net Income is defined as net income before impairment charges and contingent consideration[27] Reconciliation of Net Income to Adjusted EBITDA Adjusted EBITDA for Q2 2025 decreased to $167.0 million due to lower net income and higher interest expenses | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | YoY Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Net income | $33.2M | $86.6M | $(53.4)M | | Interest expense and other, net | $64.6M | $20.4M | $44.2M | | Depreciation and amortization | $61.0M | $38.7M | $22.3M | | Stock-based compensation | $17.5M | $22.9M | $(5.4)M | | Changes in estimated value of contingent consideration | $(33.0)M | $(16.3)M | $(16.7)M | | Adjusted EBITDA | $167.0M | $191.0M | $(24.0)M | | Adjusted EBITDA margin | 24.0% | 30.5% | (6.5)% pts | Reconciliation of Net Income to Adjusted Net Income Adjusted Net Income for Q2 2025 significantly decreased to $6.5 million, primarily due to lower net income | Metric | Three months ended June 30, 2025 ($ million) | Three months ended June 30, 2024 ($ million) | YoY Change ($ million) | | :-------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------- | | Net income | 33.2 | 86.6 | (53.4) | | Impairment charge | 0.4 | 0 | 0.4 | | Changes in estimated value of contingent consideration | (33.0) | (16.3) | (16.7) | | Income tax impact of adjustments | 5.9 | 5.7 | 0.2 | | Adjusted Net Income | 6.5 | 76.0 | (69.5) | Contacts This section provides contact information for investor relations Investor Relations Contact Investor Relations contact details are provided for inquiries - Investor Relations contact is Tae Lee at Tael@playtika.com[34]