Playtika Holding Corp. FY2025 Q1 Prepared Remarks

Playtika Holding Corp.’s first quarter of 2025 financial results demonstrate a period of record-breaking revenue alongside strategic portfolio transitions. The company achieved a historic milestone by generating $706 million in quarterly revenue, representing an 8.6% sequential increase and an 8.4% year-over-year growth. This performance was bolstered by the successful integration of recent acquisitions, most notably the SuperPlay studio, and the continued dominance of evergreen casual titles like Bingo Blitz, which reached all-time revenue highs.

The company’s financial health is characterized by a shift in performance across its gaming segments. While casual franchises and new launches like Disney Solitaire—which showed strong early key performance indicators—are driving growth, the core slot portfolio, specifically Slotomania, continues to face significant headwinds. Slotomania revenue declined 5.5% sequentially and 17.4% year-over-year, prompting management to prioritize product stabilization and the integration of high-quality third-party content. Despite these challenges, the company’s Direct-to-Consumer (DTC) business remains a vital pillar, contributing $179.2 million in revenue and serving as a strategic focus for future margin improvement.

Operating expenses rose during the quarter, largely due to increased performance marketing investments associated with scaling new acquisitions. Consequently, Credit Adjusted EBITDA reached $167.3 million, reflecting a 9.9% year-over-year decline. Management anticipates that marketing expenditures will normalize in subsequent quarters and has reaffirmed its full-year guidance, banking on the growth of its casual game pipeline to offset ongoing weakness in legacy slot titles. With $514.3 million in cash and short-term investments, the company maintains a stable liquidity position as it navigates the evolving mobile gaming landscape, where player engagement is increasingly concentrated in established, high-performing franchises.