Playtika Holding (PLTK) is poised to reach its revenue goals as the mobile game developer benefits from stronger profit margins and faster advertising growth, Wedbush said Friday in a report.
On Thursday, management reaffirmed full-year guidance of $2.7 billion to $2.75 billion in revenue and $715 million to $740 million in adjusted earnings before interest, taxes, depreciation and amortization.
Revenue of $675 million and adjusted EBITDA of $218 million in Q3 both topped expectations, Wedbush said. Bingo Blitz generated record revenue of $163 million, and Disney Solitaire scaled to an annualized run rate exceeding $200 million, the report said.
"The credit-adjusted EBITDA margin was 32%, reflecting meaningful margin expansion fueled by optimized marketing spend, AI-driven efficiencies, and the higher-margin profile" of direct-to-consumer channels, Wedbush said.
Director-to-consumer revenue reached $209.3 million in Q3, accounting for 31% of the total, the report said.
Wedbush kept its outperform rating on Playtika stock with a 12-month price target of $7.
Price: 4.12, Change: -0.06, Percent Change: -1.56
Comments