Playtika Holding (PLTK) AI Stock Analysis

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Playtika Holding

(NASDAQ:PLTK)

Rating:63Neutral

Price Target:

$5.50

▲(20.61%Upside)

Playtika's overall stock score reflects a balance of strengths in cash flow management and valuation, with notable risks in financial stability due to high leverage and declining net margins. The recent earnings call provided optimism with record-breaking revenues and promising new launches, despite challenges in certain segments. The technical analysis suggests a cautious outlook with potential for stabilization.

Positive Factors

Acquisitions

The acquisition of SuperPlay adds meaningfully to revenue and creates the backdrop for significant future growth.

Growth Potential

Playtika’s core games and recent acquisitions should drive both revenue and profit growth for the next several years.

Market Position

Playtika is positioned well to capitalize off this development with roughly 27% of its revenue already derived from its direct-to-consumer platform.

Negative Factors

Earnings Miss

Adjusted EBITDA of $167MM (-10% y/y) missed our estimate of $178MM and consensus of $173MM due to higher marketing expense.

Market Concerns

Investors remain uncertain about the ownership base in China and the mobile gaming sector’s challenging return to growth.

Revenue Challenges

Management's revenue outlook indicates that contributions from new titles are not expected to significantly impact revenues.

Playtika Holding (PLTK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.72B

Dividend Yield8.73%

Average Volume (3M)1.44M

Price to Earnings (P/E)12.2

Beta (1Y)0.95

Revenue Growth1.64%

EPS Growth-32.31%

CountryUS

Employees3,500

SectorCommunication Services

Sector Strength88

IndustryElectronic Gaming & Multimedia

Share Statistics

EPS (TTM)0.08

Shares Outstanding375,216,670

10 Day Avg. Volume1,143,114

30 Day Avg. Volume1,441,930

Financial Highlights & Ratios

PEG Ratio-1.55

Price to Book (P/B)-6.00

Price to Sales (P/S)0.00

P/FCF Ratio8.89

Enterprise Value/Market Cap3.01

Enterprise Value/Revenue0.51

Enterprise Value/Gross Profit2.74

Enterprise Value/Ebitda2.13

Forecast

1Y Price Target

$9.08

Price Target Upside99.12% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Playtika Holding Business Overview & Revenue Model

Company DescriptionPlaytika Holding Corp. is a leading mobile gaming entertainment and technology company headquartered in Herzliya, Israel. The company specializes in the development and operation of free-to-play mobile games, offering a diverse portfolio that includes popular titles such as Slotomania, Bingo Blitz, and House of Fun. Playtika leverages its proprietary technology platform to enhance player engagement and experience, providing a rich ecosystem of in-game features and social elements across a global user base.

How the Company Makes MoneyPlaytika generates revenue primarily through in-app purchases made by users within its free-to-play mobile games. Players can buy virtual currency and other digital goods that enhance gameplay, such as power-ups, extra lives, and aesthetic customizations. Additionally, the company earns money through advertising by integrating ads into its games, allowing third-party advertisers to reach its extensive player network. Playtika's revenue model is bolstered by its sophisticated data analytics capabilities, which optimize user acquisition, retention, and monetization strategies. Strategic partnerships and acquisitions also play a role in expanding its portfolio and audience reach, further contributing to its financial performance.

Playtika Holding Key Performance Indicators (KPIs)

Any

Average Daily Paying Users

Chart InsightsPlaytika's average daily paying users have surged to a record high in early 2025, reflecting strategic shifts towards casual games and successful new launches like Disney Solitaire. Despite challenges in the Slotomania franchise, the company's focus on direct-to-consumer growth and strong performances from titles like Bingo Blitz and Dice Dreams are driving user engagement. This aligns with their record-breaking revenue milestone, indicating a robust recovery and potential for sustained growth in user base and revenue streams.

Data provided by:

Main Street Data

Playtika Holding Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -16.02%|

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 Financial Statement Overview

Summary

Playtika Holding shows stable revenue and profit margins, but faces challenges with declining net margins and high leverage. The negative equity and high debt levels pose significant financial risks. However, strong operating and free cash flows suggest good cash management, providing liquidity support. The company needs to address its leverage and work toward improving profit margins to enhance financial stability.

Income Statement

Neutral

Playtika Holding's income statement reveals stable gross profit margins with a TTM (Trailing-Twelve-Months) value of approximately 72.6%. However, the net profit margin has decreased to about 5.4% in the TTM, down from 6.4% in the previous annual period. The revenue growth rate is relatively flat, showing a decline of about 0.5% compared to the previous year. Additionally, both EBIT and EBITDA margins have shown some weakening, indicating pressures on operational efficiency.

Balance Sheet

Negative

The balance sheet reflects a negative stockholders' equity, which is a major concern. The debt-to-equity ratio is not meaningful due to the negative equity, suggesting high leverage and financial risk. Despite the negative equity, the company has a reasonable amount of cash and short-term investments, but the equity ratio is negative due to liabilities exceeding assets.

Cash Flow

Positive

Cash flow analysis indicates a strong operating cash flow to net income ratio, with operating cash flow exceeding net income consistently. Free cash flow remains positive, although there has been a decline from the previous year. The free cash flow to net income ratio is healthy, suggesting efficient cash generation relative to earnings.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.60B	2.55B	2.57B	2.62B	2.58B	2.37B
	Gross Profit
1.89B	1.86B	1.85B	1.88B	1.85B	1.66B
	EBIT
354.20M	391.60M	568.00M	309.40M	416.70M	268.00M
	EBITDA
513.60M	603.00M	703.60M	640.30M	703.10M	511.90M
	Net Income Common Stockholders
139.80M	162.20M	235.00M	275.30M	308.50M	92.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
514.30M	565.80M	1.03B	768.70M	1.12B	520.10M
	Total Assets
3.58B	3.64B	3.17B	2.70B	2.80B	1.78B
	Total Debt
2.52B	2.50B	2.52B	2.53B	2.53B	2.40B
	Net Debt
2.09B	1.93B	1.49B	1.76B	1.52B	1.88B
	Total Liabilities
3.69B	3.77B	3.40B	3.27B	3.18B	3.02B
	Stockholders Equity
-117.20M	-131.10M	-221.50M	-568.60M	-377.70M	-1.24B
Cash Flow		Free Cash Flow
409.50M	449.20M	436.40M	383.70M	452.10M	419.60M
	Operating Cash Flow
479.30M	490.10M	515.60M	493.70M	551.70M	517.70M
	Investing Cash Flow
-851.30M	-782.10M	-240.20M	-74.60M	-609.40M	-98.10M
	Financing Cash Flow
-209.00M	-167.10M	-18.20M	-652.00M	559.70M	-181.30M

Playtika Holding Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.56

Price Trends

50DMA

4.94

Negative

100DMA

5.38

Negative

200DMA

6.40

Negative

Market Momentum

MACD

-0.08

Positive

RSI

38.41

Neutral

STOCH

11.69

Positive

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 4.56 is below the 20-day moving average (MA) of 4.75, below the 50-day MA of 4.94, and below the 200-day MA of 6.40, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 11.69 is Positive, 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GDEV	71 Outperform	$311.11M	7.63		1003.03%	-5.57%	―
PLTK	63 Neutral	$1.72B	12.21	-220.61%	8.73%	1.64%	-32.31%
CURI	62 Neutral	$277.58M	―	-12.13%	6.67%	-4.04%	84.17%
Sector *	61 Neutral	$14.68B	5.92	-3.83%	7.51%	2.79%	-33.07%
MYPS	57 Neutral	$176.25M	―	-11.64%	―	-11.11%	-90.96%
SKLZ	51 Neutral	$110.96M	―	-21.26%	―	-29.26%	57.78%
DOYU	49 Neutral	$197.37M	―	-6.76%	―	-24.10%	-953.50%

* Communication Services Sector Average

Performance Comparison

PLTK

Playtika Holding

4.56

-3.05

-40.08%

DOYU

DouYu International Holdings

6.46

4.48

226.26%

CURI

CuriosityStream

4.81

3.82

385.86%

SKLZ

Skillz

6.29

-0.42

-6.26%

GDEV

Nexters

16.35

-4.34

-20.98%

MYPS

PLAYSTUDIOS

1.43

-0.64

-30.92%

Playtika Holding Corporate Events

Executive/Board ChangesShareholder Meetings

Playtika Holding Elects Board at Annual Meeting

Neutral

Jun 16, 2025

On June 12, 2025, Playtika Holding Corp. held its annual stockholders’ meeting, where all nominees for the board of directors were successfully elected. Additionally, the stockholders ratified the selection of Kost Forer Gabbay & Kasierer as the independent registered public accounting firm for 2025 and approved the executive compensation on a non-binding basis. These decisions reflect continued shareholder support for the company’s strategic direction and governance.

The most recent analyst rating on (PLTK) stock is a Buy with a $11.50 price target. To see the full list of analyst forecasts on Playtika Holding stock, see the PLTK Stock Forecast page.

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.