PlaySide Studios (PLY) H2 2024 earnings summary

Executive summary

• Achieved record revenue of $64.6m in FY24, up 68% year-over-year from $38.4m, and record half-year revenue of $36.2m, up 119% year-over-year for the period ended 31 December 2023.

• EBITDA reached $17.5m for FY24, reversing a prior year loss of $1.7m; half-year EBITDA was $12.2m.

• Net operating cash flow was $18.1m for FY24 and $12.8m for the half-year; closing net cash balance was $37.1m for FY24 and $38.3m for the half-year.

• Largest games development studio in Australia, with 360 staff and over 70 titles developed.

• Strong operational momentum with new partnerships and project extensions.

Financial highlights

• Original IP revenue doubled to $30.3m (+103% year-over-year) for FY24; half-year Original IP revenue was $17.7m, up 218% year-over-year.

• Work for Hire revenue rose 46% to $34.3m for FY24; half-year Work for Hire revenue was $18.5m, up 69% year-over-year.

• Cash conversion was strong at 96% of EBITDA.

• Five-year revenue CAGR of 67%.

• EBITDA margin improved significantly, with $17.5m EBITDA vs. $(1.7)m prior year.

Outlook and guidance

• Major PC/Console titles progressing toward launch, including Kill Knight (Oct 2024) and MOUSE (CY2025).

• FY24 revenue guidance set at $60-65m, with EBITDA expected between $11-13m.

• FY25 guidance to be provided at the AGM in October.

• Warner Bros. IP and first game title announcement anticipated in the June half.

• Continued investment in MOUSE and significant marketing initiatives planned.