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PlaySide Studios Announces Operational Restructure Amid Contract Delays

Story Highlights
  • PlaySide Studios is restructuring due to delays in securing Work for Hire contracts.
  • The restructuring will not impact major Original IP projects, and aims for cost savings of $4-5 million annually.
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PlaySide Studios Announces Operational Restructure Amid Contract Delays

Playside Studios Ltd ( (AU:PLY) ) just unveiled an update.

PlaySide Studios is restructuring its operations due to delays in securing anticipated Work for Hire contracts, leading to excess staff capacity. While the company remains optimistic about acquiring new contracts, the timing is uncertain. The restructuring will not affect the development of PlaySide’s major Original IP projects, such as ‘MOUSE: P.I. for Hire’ and the ‘Game of Thrones’ real-time strategy game. The company expects cost savings of $4-5 million per annum from proposed redundancies, with an upfront restructuring cost of approximately $1.5 million. PlaySide aims to optimize its cost base to ensure sustainable growth and high cash flow generation from its Original IP projects starting FY26. The FY25 guidance remains unchanged, with expected revenue of $50-54 million and an EBITDA loss of $6-10 million.

More about Playside Studios Ltd

PlaySide Studios Limited is an Australian video game developer and publisher, headquartered in Port Melbourne, Australia, and publicly traded on the Australian Securities Exchange under the code PLY. The company develops video games for various platforms including mobile, PC/Console, virtual reality, and mixed reality. PlaySide has a portfolio of approximately 60 titles and provides game development services in collaboration with major technology and entertainment companies such as Activision Blizzard, Meta, Netflix Games, and Take Two Interactive. It also has a publishing arm that supports third-party games from smaller independent studios.

YTD Price Performance: -54.88%

Average Trading Volume: 959,451

Technical Sentiment Signal: Buy

Current Market Cap: A$75.95M

For a thorough assessment of PLY stock, go to TipRanks’ Stock Analysis page.

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