PlaySide Studios (PLY) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2024 declined 21% year-over-year to $28.5m, primarily due to lower Original IP revenue following a major licensing deal in the prior period; Work for Hire revenue remained stable at $18.6m.

• EBITDA loss was $3.0m, a swing from a $12.2m profit year-over-year, driven by higher headcount and increased marketing costs.

• Net loss after tax was $5.3m, down from a $9.0m profit in the prior year, reflecting reduced revenue and increased expenses.

• Net cash balance at 31 Dec 2024 was $28.5m, down from $37.1m at 30 June 2024, reflecting heavy investment in future title launches.

• Major new titles launched included Kill Knight (94% Steam review, 88 Metacritic), Age of Darkness full release, and preparations for MOUSE and Game of Thrones RTS launches.

Financial highlights

• Original IP revenue fell 44% to $9.9m, impacted by absence of prior licensing deal; Work for Hire revenue was steady at $18.6m.

• NPAT loss of $5.3m, compared to $9.0m profit in the prior year.

• Operating cash flow remained positive at $1.1m, but net cash outflow of $8.0m after investments.

• Marketing expenses rose to $3.8m (vs $1.4m in June half), supporting upcoming titles.

• Net tangible assets per share decreased to $0.060 from $0.098 year-over-year.

Outlook and guidance

• FY25 revenue guidance is $50–54m, with expected EBITDA loss of $6–10m and closing cash of $10–15m.

• Anticipates project signings in 2HFY25 after delays in Work for Hire negotiations.

• Major Original IP projects progressing, with MOUSE targeting 1M+ wishlists by launch and Game of Thrones RTS marketing to begin this year.

• Continued high investment levels anticipated for the remainder of the year, especially for major launches.

• No significant changes in the state of affairs or post-balance sheet events affecting future periods.