Playtika (PLTK) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was $2,549.3 million, down 0.7% year-over-year; net income was $162.2 million, down 31% from 2023.

• Credit Adjusted EBITDA was $757.7 million, a 9% decrease year-over-year; free cash flow was $396.8 million, down 9.1%.

• Direct-to-consumer platform revenue grew 8.6% year-over-year; casual games revenue rose 11.3%, while social casino-themed games declined 10%.

• Completed the largest acquisition in company history (SuperPlay), adding new franchises and expanding the portfolio.

• Initiated quarterly dividends, authorized a buyback program, and invested in new studios to drive future growth.

Financial highlights

• Q4 2024 revenue was $650.3 million, up 4.8% sequentially and 1.9% year-over-year.

• Q4 GAAP net income was negative $16.7 million; FY2024 net income margin was 6.4%, down from 9.2% in 2023.

• Q4 Credit Adjusted EBITDA was $183.9 million, down 2.6% year-over-year; margin was 28.3%.

• Free Cash Flow for FY2024 was $396.8 million, down from $436.4 million in 2023.

• Cash and cash equivalents totaled $565.8 million as of December 31, 2024.

Outlook and guidance

• FY2025 revenue guidance is $2.8–$2.85 billion; Credit Adjusted EBITDA expected between $715–$740 million.

• Capital expenditures for 2025 projected at $95 million; effective tax rate estimated at 35%.

• 2025 is expected to be a transitional year with near-term EBITDA pressure due to investments in new titles and ongoing slot portfolio decline.

• Management expects renewed EBITDA growth starting in 2026 as investments in new studios mature.