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Investing.com -- Playtika Holding Corp . (NASDAQ:PLTK) on Thursday reported second-quarter earnings that fell short of analyst expectations, sending shares down 3.9% as the mobile gaming company struggled with declining performance in key titles.
The company posted adjusted earnings of $0.09 per share, missing the analyst consensus of $0.19 by a significant margin. Revenue came in at $696 million, below the $705.4 million analysts had expected, though it represented an 11% increase YoY.
The stock’s decline reflects investor disappointment with both the earnings miss and revised guidance.
"We are pleased to report a resilient second quarter, with revenue reaching $696 million," said Robert Antokol, Chief Executive Officer.
"The success of our latest launch, Disney (NYSE:DIS) Solitaire, which has already hit the $100 million annual run-rate revenue threshold, is a testament to the incredible work of our employees, in collaboration with Disney & Pixar Games."
While the company’s direct-to-consumer (DTC) platforms generated $175.9 million in revenue, this represented a 1.8% sequential decrease, though it was up 1.3% YoY. The company’s flagship title Bingo Blitz brought in $160.2 million, down 1.3% sequentially but up 2.9% YoY.
More concerning was Slotomania, which saw revenue plummet 22.7% sequentially and 35.4% YoY to $86.5 million.
Adjusted EBITDA fell 12.6% YoY to $167 million, while adjusted net income plunged 91.4% YoY to just $6.5 million.
"Our DTC business remains a key priority as we navigate the competitive landscape of mobile gaming," said Craig Abrahams, President and CFO. "We are increasing our long-term target for DTC to 40%, up from 30%. This strategic transition is intended to balance our margins as we manage changes within our portfolio."
Playtika revised its full-year revenue guidance to between $2.70 billion and $2.75 billion while maintaining its adjusted EBITDA forecast of $715 million to $740 million.
The company also declared a quarterly dividend of $0.10 per share, payable on October 10, 2025.
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