PlaySide Studios Limited (ASX:PLY) Announces Unaudited FY25 Results
Financial Performance
PlaySide Studios Limited reported revenue of $48.5-$49.0 million for FY25, slightly below the previous $50-$54 million guidance. Original IP revenue was $16.5-$16.8 million, while Work for Hire revenue reached $32.0-$32.2 million, below the anticipated $33-$36 million. The company recorded an EBITDA loss of $7.2-$7.7 million, including $1.6 million in restructuring costs, compared to the guided loss of $6-$10 million. The cash balance as of 30 June stood at $13.4-$13.6 million, within the expected range of $10-15 million.
Operational Developments
The slight revenue shortfall was attributed to the cancellation of several smaller titles following a restructuring in April. Playside secured some small extensions to Work for Hire contracts with existing clients and faced delays in new sales cycles. The company is actively engaging in discussions for large contracts and has recently secured two smaller opportunities with new clients. Industry dynamics indicate a shift where clients prefer prototyping or technical demo work before committing to larger projects. PlaySide is leveraging this trend to expand its Work for Hire client base and remains optimistic about converting these opportunities into long-term agreements.
Future Outlook
PlaySide maintained its cash levels within guidance despite restructuring costs and significant investments in marketing campaigns for titles like Game of Thrones: War for Westeros and MOUSE: P.I. For Hire. Management has effectively reduced overheads, positioning the company to achieve sustainable revenue and cash flow growth from successful game launches. While explicit FY26 guidance will be provided closer to the launch of MOUSE: P.I. For Hire, management is confident in delivering revenue growth and operating cost savings relative to FY25.
PlaySide expects to release its FY25 result on Wednesday, 27 August and will host an Investor Webinar on the day.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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