PlaySide Studios (PLY) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2024 was $28.5 million, down 21% year-over-year, mainly due to a 44% drop in Original IP revenue following a prior period licensing deal; Work for Hire revenue remained steady at $18.6 million.

• EBITDA loss was $3.0 million, a swing from a $12.2 million profit in the prior year, driven by higher headcount and increased marketing costs.

• Net loss after tax was $5.3 million, compared to a $9.0 million profit in the prior year.

• Net cash balance at 31 December 2024 was $28.5 million, down from $37.1 million at 30 June 2024, reflecting $13 million invested 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.

Financial highlights

• Original IP revenue fell to $9.9 million, down 44% year-over-year, while Work for Hire revenue remained steady at $18.6 million.

• NPAT loss was $5.3 million, compared to a $9.0 million profit in the prior year.

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

• Marketing expenses rose to $3.8 million, up from $1.4 million in the prior 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 $50–54 million, with expected EBITDA loss of $6–10 million and closing cash of $10–15 million.

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

• Major launches planned include MOUSE, targeting over 1 million Steam wishlists, and Game of Thrones RTS.

• Continued high investment in multi-year development for major titles launching from 1HFY26.

• Headcount expected to remain flat or below last year’s level, depending on work-for-hire activity.