PlaySide Studios (PLY) H1 2025 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2024 declined 21% year-over-year to $28.5 million, primarily due to lower Original IP revenue following a major licensing deal in the prior period, while Work for Hire revenue remained stable at $18.6 million.

• EBITDA swung to a $3.0 million loss from a $12.2 million profit year-over-year, driven by higher headcount and increased marketing costs.

• Net cash balance at 31 Dec 2024 was $28.5 million, down from $37.1 million at 30 June 2024, reflecting heavy investment in future title launches.

• Major new titles launched, including Kill Knight (94% Steam review, 88 Metacritic), and Age of Darkness full release with 130,000 units sold in January.

• No dividends were declared or paid for the period.

Financial highlights

• Original IP revenue fell to $9.9 million, down 44% year-over-year, impacted by the absence of a prior licensing deal.

• Work for Hire revenue was $18.6 million, flat year-over-year.

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

• Operating cash flow remained positive at $1.1 million, despite significant marketing spend and investment in new projects.

• Marketing expenses rose to $3.8 million (vs $1.4 million in June half), supporting upcoming titles.

Outlook and guidance

• FY25 revenue guidance is $50–54 million, with an expected EBITDA loss of $6–10 million and closing cash of $10–15 million.

• Major upcoming launches include Mouse (targeting over 1 million Steam wishlists), two Game of Thrones games, and a Dumb Ways to Die console title.

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

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

• Plans to release a title on Switch 2 at launch, aiming for a hard copy in stores by Christmas.