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Playtika Holding (PLTK)
NASDAQ:PLTK
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Playtika Holding
(NASDAQ:PLTK)
68Neutral
Positive Factors
Growth Potential
Shares are undervalued as the growth potential is not yet well understood, creating an opportunity for shares to double in the next few years.
Revenue and Profit Growth
Playtika's core games and recent acquisitions should drive both revenue and profit growth for the next several years.
Negative Factors
Mobile Gaming Challenges
Analyst downgrades the stock to Neutral due to headwinds in mobile gaming and concerning trends within core franchises.
Revenue Impact
Management's revenue outlook indicates that contributions from new titles are not expected to significantly impact revenues.
Playtika Holding (PLTK) vs. S&P 500 (SPY)
Market Cap
$1.98B
Dividend Yield7.58%
Average Volume (3M)2.08M
Price to Earnings (P/E)12.3
Beta (1Y)0.92
Revenue Growth-0.69%
EPS Growth-31.96%
CountryUS
Employees3,500
SectorCommunication Services
Sector Strength84
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.08
Shares Outstanding375,435,940
10 Day Avg. Volume1,576,161
30 Day Avg. Volume2,079,700
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.28
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.43
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.25Price Target Upside51.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Playtika Holding Business Overview & Revenue Model
Company DescriptionPlaytika Holding Corp. develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company owns a portfolio of casual and casino-themed games. It distributes its games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google, and other web and mobile platforms and its own proprietary platforms. The company was founded in 2010 and is headquartered in Herzliya Pituarch, Israel. Playtika Holding Corp. is a subsidiary of Playtika Holding Uk Ii Limited.
How the Company Makes MoneyPlaytika primarily generates revenue through a freemium model, where games are free to download and play, but offer in-app purchases for virtual items, currency, and other premium features. This model encourages player engagement and monetization through microtransactions. Additionally, the company earns revenue from in-game advertising, which is integrated into its mobile games. Playtika's strategy involves leveraging advanced data analytics to optimize user acquisition, retention, and monetization, ensuring sustained revenue growth. Furthermore, Playtika benefits from strategic partnerships and collaborations with other gaming and technology companies, enhancing its distribution and market reach.
Playtika Holding Financial Statement Overview
Summary
Playtika Holding's financials depict a company with solid revenue generation and cash flow management but facing challenges with profitability and a highly leveraged balance sheet. Stability in cash flow offers resilience, yet the negative equity and profit margin pressures suggest a need for strategic financial improvement.Income Statement
Playtika Holding has shown stable revenue with slight fluctuations over the years. The gross profit margin remains strong, indicating efficient production. However, the net profit margin has decreased in recent years due to increasing costs affecting net income. The decline in EBIT margins also points to pressure on operational efficiency.―
Balance Sheet
The company has a negative stockholders' equity, indicating a leveraged position with more liabilities than assets. The debt-to-equity ratio is concerning, highlighting financial risk. Despite this, the company maintains significant cash reserves, which provide some liquidity cushion.45
Cash Flow
Playtika has managed to maintain a steady free cash flow, with recent growth in free cash flow despite operational challenges. The operating cash flow to net income ratio is strong, reflecting efficient cash generation relative to earnings, though the high leverage remains a concern.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.55B | 2.57B | 2.62B | 2.58B | 2.37B |
| Gross Profit | ||||
| 1.86B | 1.85B | 1.88B | 1.85B | 1.66B |
| EBIT | ||||
| 391.60M | 568.00M | 309.40M | 416.70M | 268.00M |
| EBITDA | ||||
| 601.40M | 703.60M | 640.30M | 703.10M | 511.90M |
| Net Income Common Stockholders | ||||
| 162.20M | 235.00M | 275.30M | 308.50M | 92.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 565.80M | 1.03B | 768.70M | 1.12B | 520.10M |
| Total Assets | ||||
| 3.64B | 3.17B | 2.70B | 2.80B | 1.78B |
| Total Debt | ||||
| 2.50B | 2.52B | 2.53B | 2.53B | 2.40B |
| Net Debt | ||||
| 1.93B | 1.49B | 1.76B | 1.52B | 1.88B |
| Total Liabilities | ||||
| 3.77B | 3.40B | 3.27B | 3.18B | 3.02B |
| Stockholders Equity | ||||
| -131.10M | -221.50M | -568.60M | -377.70M | -1.24B |
| Cash Flow | Free Cash Flow | |||
| 449.20M | 436.40M | 383.70M | 452.10M | 419.60M |
| Operating Cash Flow | ||||
| 490.10M | 515.60M | 493.70M | 551.70M | 517.70M |
| Investing Cash Flow | ||||
| -782.10M | -240.20M | -74.60M | -609.40M | -98.10M |
| Financing Cash Flow | ||||
| -167.10M | -18.20M | -652.00M | 559.70M | -181.30M |
Playtika Holding Technical Analysis
Negative
5.43
Price Trends
4.96
Positive
5.96
Negative
6.70
Negative
Market Momentum
0.06
Negative
45.53
Neutral
48.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTK, the sentiment is Negative. The current price of 5.43 is above the 20-day moving average (MA) of 5.14, above the 50-day MA of 4.96, and below the 200-day MA of 6.70, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTK.
Playtika Holding Risk Analysis
Playtika Holding disclosed 72 risk factors in its most recent earnings report. Playtika Holding reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Playtika Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.98B | 12.32 | -220.61% | 7.58% | -0.69% | -31.96% | |
66 Neutral | $298.06M | 7.67 | ― | -5.57% | ― | ||
62 Neutral | $187.87M | ― | -12.13% | 3.48% | -4.04% | 84.17% | |
60 Neutral | $13.74B | 7.25 | -2.74% | 3.81% | 2.21% | -37.97% | |
57 Neutral | $164.40M | ― | -11.64% | ― | -11.11% | -90.96% | |
51 Neutral | $89.55M | ― | -25.25% | ― | -36.40% | 49.91% | |
49 Neutral | $230.87M | ― | -5.44% | ― | -24.10% | -953.50% |
* Communication Services Sector Average
Performance Comparison
PLTK
Playtika Holding
5.02
-3.32
-39.81%
DOYU
DouYu International Holdings
7.29
5.47
300.55%
CURI
CuriosityStream
4.47
3.33
292.11%
SKLZ
Skillz
5.28
-1.12
-17.50%
GDEV
Nexters
15.45
-2.63
-14.55%
MYPS
PLAYSTUDIOS
1.44
-1.00
-40.98%
Playtika Holding Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
Playtika achieved record-breaking revenue in Q1 2025, driven by strong performances in its casual games and successful launches, such as Disney Solitaire. However, challenges persist with declining revenues in the Slotomania franchise and decreased EBITDA margins due to increased marketing expenses. The company is focused on stabilizing its slot games while leveraging its strengths in the D2C business.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue
Playtika achieved a historic milestone in Q1 2025, generating over $700 million in revenue, marking the highest quarterly revenue in the company's history. This represents an 8.4% year-over-year increase.
Strong Performance of Bingo Blitz
Bingo Blitz achieved an all-time high in total revenues, generating $162.4 million, up 2.1% sequentially and 3.1% year over year. The game benefited from several key initiatives, including the American Idol campaign.
Successful Launch of Disney Solitaire
Disney Solitaire, launched on April 17, 2025, is showing promising results with some of the best launch KPIs seen in years. It's expected to reach the $100 million run rate revenue mark faster than Dice Dreams and Domino Dreams.
Growth in Direct-to-Consumer (D2C) Business
The D2C business achieved record revenues of $179.2 million, up 2.6% sequentially and 4.5% year over year, driven by Bingo Blitz, June's Journey, and Solitaire Grand Harvest.
Dice Dreams Revenue Surge
Dice Dreams was among the top three games by revenue with $78.6 million, up 124.5% sequentially, reflecting successful integration and strong execution.
Negative Updates
Slotomania Revenue Decline
Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year-over-year, due to several quarters of sequential decline and resurfacing game economy issues.
Decreased EBITDA Margins
Credit-adjusted EBITDA was $167.3 million, down 9% sequentially and 9.9% year-over-year, impacted by increased marketing expenses and losses from the SuperPlay acquisition.
GAAP Net Income Decrease
GAAP net income was $30.6 million, down 42.3% year-over-year, reflecting challenges in the slot games and increased operating expenses.
Company Guidance
During the Playtika Q1 2025 earnings call, the company reported a historic milestone, generating over $700 million in revenue for the quarter, marking the highest quarterly revenue in its history. Despite this achievement, the company faced challenges with its Slotomania title, which saw a decline in revenue, down 5.5% sequentially and 17.4% year-over-year, with expectations of continued decline before improvements are realized. Conversely, Bingo Blitz achieved record-breaking revenue of $162.4 million, a 2.1% sequential and 3.1% year-over-year increase. The newly launched Disney Solitaire is showing promising early metrics and is projected to reach $100 million in run rate revenue faster than other titles. Playtika's direct-to-consumer (D2C) business also achieved record revenues of $179.2 million, with a 2.6% sequential and 4.5% year-over-year increase, driven by strong performances from Bingo Blitz, June's Journey, and Solitaire Grand Harvest. The company maintains its guidance for the year, aiming to offset slot title declines with growth in casual titles, and plans to strategically manage marketing expenses as they decline sequentially throughout the year.Playtika Holding Corporate Events
Executive/Board Changes
Playtika Holding’s Chief Accounting Officer Announces Retirement
Neutral
Apr 21, 2025
On April 17, 2025, Troy Vanke, Chief Accounting Officer of Playtika Holding Corp., announced his intention to retire and resign from his position, effective June 30, 2025.
Spark’s Take on PLTK Stock
According to Spark, TipRanks’ AI Analyst, PLTK is a Neutral.
Playtika’s overall stock score reflects a balance between solid cash flow management and attractive valuation, offset by challenges in profitability and technical indicators signaling bearish momentum. The company’s strategic investments and acquisitions indicate potential for future growth, but current financial pressures remain a concern.
To see Spark’s full report on PLTK stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.