Israeli mobile games developer Playtika Holding Corp. (Nasdaq: PLTK) is trading down 2.84% in morning trading today on Wall Street, an all-time low, giving a market cap of $1.93 billion. This follows a 22.9% plunge in the stock in the last two trading sessions last week after publishing its financial results for the fourth quarter and full year 2024 and guidance for 2025. The Herzliya-based company, led by CEO and founder Robert Antokol, held its IPO on Nasdaq four years ago at a company valuation of $11.1 billion - thus the share price has fallen since then by more than 80%.
In the fourth quarter of 2024, Playtika reported revenue of $650 million, up 1.9% from the corresponding quarter of 2023. Annual revenue in 2024 was $2.55 billion, down 0.7% from 2023, and slightly higher than the analysts' expectations. Playtika reported a $16.7 million net loss in the fourth quarter but a net profit of $162 million in full-year 2024, down 31% from 2023. The company noted that revenue from direct-to-consumer sales increased by 0.1% from the previous quarter and by 8% from the corresponding quarter, totaling about $175 million. At the end of 2024, Playtika had roughly $566 million in cash, after acquiring Israeli gaming company SuperPlay last year for $700 million (plus potential future milestone payments).
The company forecasts a return to growth in 2025, with revenue of $2.8-2.85 billion, with the midpoint of the guidance range below analysts' forecasts. Antokol said, "We are thrilled with the progress we have made in executing our return to growth strategy, highlighted by our successful acquisition of SuperPlay. Looking ahead, we are excited by our pipeline of new games and continued M&A opportunities, which we believe will drive consistent topline growth and create value for our shareholders."
According to the Wall Street Journal, 12 analysts are covering Playtika stock, with the majority (8) neutral, three positive and one negative. After the stock fell, their average price target is 54% higher than the closing price on Friday.
Published by Globes, Israel business news - en.globes.co.il - on March 3, 2025.
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