Latest news with #Playtika
Forbes
3 days ago
- Business
- Forbes
How To Lock In Yields Up To 17.1% In Historically Cheap Small Caps
Small-cap stocks haven't been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we'll discuss five cheap small caps yielding between 8.3% and 17.1%. (That's no typo by the way—we only talk serious dividends here at Contrarian Outlook!) The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let's shop: The valuation spread between the S&P 500 and S&P 600 hasn't been this wide since Bill Clinton was wondering whether dot-com was one word or two. Is a bust to follow again or are these big yields from small stocks really spectacular deals? Let's explore. Israel-based Platytika Holding (PLTK) is a gamemaker that primarily makes casino-themed titles for countries on just about every continent. Here in the U.S., Playtika's best-known titles include Bingo Blitz, Redecor and Domino Dreams. Playtika has done quite a bit of building by acquisition, purchasing Seriously, Youda Games, Innplay Labs and, most recently, SuperPlay, among others. (It tried to buy Angry Birds maker Rovio in 2023, but the deal eventually fell apart.) Playtika hasn't been a dividend stock for very long—it initiated its dividend program in late February 2024. About a year ago, when I examined PLTK among other 'inaugural dividends,' I mentioned its 10-cent-quarterly dividend translated into a nice 5% yield, but also more than 60% of the company's estimated earnings for 2024. By the time all was said and done, it ended up being closer to 70% of adjusted profits for last year. Fast-forward to today: PLTK hasn't raised its payout, but it now yields north of 8%. This is the 'wrong way' to raise a dividend. PLTK Total Returns Ycharts As I said in my previous writeup, the mobile game market is brutal, especially among the 'free to play' titles that Playtika specializes in. PLTK had been suffering from years of profit declines and flat sales, and sure enough, 2024 saw another drop in earnings and a modest decline in sales. And yet … the few pros who cover the stock are quite bullish about what comes next. While revenue growth estimates for the next two years aren't much to scream over, they're looking for a 32% jump in profits this year, and a respectable 23% improvement in 2026. Meanwhile, PLTK's woeful performance has driven the dividend higher and its valuation down to a dirt-cheap 6 times forward earnings. Still, Playtika is asking for a lot of faith in its growth prospects while (so far) providing very little evidence. Carlyle Secured Lending (CGBD) is a business development company (BDC) that's externally managed by a subsidiary of multinational asset manager Carlyle Group (CG). CGBD invests primarily in U.S. middle market companies with between $25 million and $100 million in annual EBITDA. And it predominantly deals in first-lien debt (83%), though it has single-digit exposure to second-lien debt, equity investments and even investment funds. Its 138 portfolio companies cover a couple dozen industries, including healthcare/pharmaceuticals, software, consumer services, and business services. Carlyle Secured Lending came public in 2017. And as we neared the end of 2024, I noted that shares had and spent most of their time putting up downright excellent returns. Things have changed—drastically!—since then. CGBD Total Returns Ycharts What went wrong? Two earnings reports have revealed some growing cracks in Carlyle's armor. In February, profits came in below estimates, thanks largely to a markdown on hotel management company Aimbridge Hospitality. It also doubled the number of companies on non-accrual (loans that are delinquent for a prolonged period, usually 90 days), from two to four. In May, the company reported disappointing earnings again, and an additional company went on non-accrual, bringing non-accruals up to 1.6% of the total portfolio at fair value. More importantly, the company announced it would only pay a base dividend of 40 cents per share. That's problematic for two reasons: Based on net investment income (NII) estimates for the rest of the year, dividend coverage could be tight; it's possible the company might need to rely on 'spillover' income to cover the payout for at least a quarter or two. CGBD is just a couple months removed from a potentially beneficial merger with another BDC, Carlyle Secured Lending III; even without any more specials, its base dividend translates into an 11%-plus yield; and shares now trade at a nice 16% discount to net asset value (NAV). But I'd like to see signs that CGBD is correcting its recent operational slide. Bain Capital Specialty Finance (BCSF) is a diversified BDC that provides a variety of financing solutions to 175 portfolio companies primarily in North America, but also Europe and Australia (a rarity for many BDCs). The lion's share of Bain Capital's investments are first-lien in nature—in addition to 64% exposure directly through portfolio companies, it also has almost 16% more through its investment vehicles. It also deals in equity and preferred equity interest, as well as second-lien and subordinated debt. Unlike CGBD, Bain Capital hasn't exactly lit the industry on fire, but it has caught its stride over the past couple of years. Other reasons to like it? A low cost of debt, a higher-than-average portfolio yield (made even better by its joint ventures), investment-grade debt and an 11% discount to NAV. However I'm nervous about its dividend situation. Dividend coverage has been a strength for the past couple of years, but that could be changing. In 2024, Bain Capital stopped a short streak of dividend hikes and kept its 42-cent regular dividend in place. It instead began paying 3-cent quarterly special dividends, which it has kept up with ever since. That 45 cents quarterly comes out to $1.80 per share in annual dividends. However, analysts expect net investment income to drop from $2.09 per share in 2024 to $1.84 per share this year and $1.82 per share in 2026. That means dividend ratios in the 98%-99% range, which leaves almost no room for error. If BCSF does run into difficulty over the next couple of years, we could see the special dividends reduced or taken away outright—certainly a better look than having to cut a regular dividend, but the practical end result is still less income, even if temporarily. On the other hand, the base-and-special system gives BCSF room to reward us more if Wall Street's expectations prove overly pessimistic. Let's move to another high-yield corner of the market: mortgage real estate investment trusts (mREITs). For the unfamiliar: The typical REIT deals in physical properties—apartments, strip malls, hospitals, casinos. But mortgage REITs deal in 'paper' real estate. They borrow at low short-term rates, lend that cash out in the form of mortgages based on long-term rates, then pocket the difference. If 'long' rates (like those on the 10-year Treasury) are steady or, better yet, declining, that's great news for mREITs. New loans pay less, so their existing loans become more valuable. That's been a mixed bag for mREITs in 2025, which enjoyed declining rates for the first couple months of the year, but have been suffering from a rebound ever since. First up is Two Harbors Investment (TWO), which deals in mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBSs) and other financial assets. It also owns an operational platform, RoundPoint Mortgage Servicing LLC, and it has a direct-to-consumer originations business that's still in its early innings. Whenever we see a yield near 20%, it's almost always caused by a sharp decline in share prices. That's very much the case with Two Harbors, whose shares traded in the $60s before collapsing during COVID, only mildly rebounded, then deteriorated ever since to current prices around $10 per share. That action pretty accurately reflected a miserable operating picture: TWO Dividend Ycharts Still, we're talking about a 17%-plus yield. If there's any sort of redeeming value, it's worth looking into. Well, Two Harbors has been working on lowering its debt-to-equity ratio, the company's book value ticked up in the most recent quarter, and it trades at a low 70% of that (still relatively decimated) book value. But all of those positive bullet points have been canceled out by an 8-K filed near the end of May. Two Harbors announced it was taking a $198.9 million charge related to litigation dating back to 2020 against PRCM Advisers, its former external manager. That comes out to roughly $1.90 per share, or 13% of TWO's last reported book value of $14.66 per share. The potential danger is that this significant hit to book value could impact earnings available for distribution (EAD), putting its current dividend rate of 45 cents per share at risk. While the company doesn't report earnings until July, TWO typically announces its dividends in the middle of the month prior to the month in which it reports—so, in this case, we might know by sometime in mid-June. Too much dividend drama. Take Franklin BSP Realty Trust (FBRT), a mortgage REIT dealing in commercial mortgage-backed securities (CMBSs). Multifamily is king here, at more than 70% of the portfolio, but FBRT is happy to take on just about any type of commercial property—it also holds loans in hospitality, industrial, office, retail and other sectors. Virtually all of its portfolio is senior debt, and nearly 90% of that is floating-rate in nature. Collateralized loan obligations are the bulk of its financing sources at a hair over 80%, but Franklin BSP Realty Trust also has 11% exposure to warehouse lending (credit lines extended by banks to originate mortgages), 5% to repurchase agreements (repo), and sprinklings of unsecured debt and asset-specific financing. FBRT shares are down by double digits year-to-date, but now trade at an attractive 28% discount to book and a P/E of around 7 based on 2026 earnings estimates, which is pretty low among mREITs. And there are reasons for optimism—chiefly, the looming July close on the acquisition of NewPoint Holdings JV LLC. The deal to absorb this privately held commercial real estate finance company could set Franklin apart from other commercial mREITs. Again, though, the dividend situation is perhaps shakier than many of us would want. For one, the payout hasn't budged since the company started trading in 2021. Also problematic—real-estate owned (basically, foreclosures) and short-term non-market financing have been dragging on earnings. On the most recent conference call, CFO Jerome Baglien said, 'While we believe in the long-term earning power of the company to cover the dividend, if REO sales slow or volatile market conditions persist, it could be prudent to revisit our dividend in the short term.' There is a little good news: If earnings expectations stay on track, on the other side of FBRT's short-term drag is a path to more solid dividend coverage longer-term. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
Yahoo
09-05-2025
- Business
- Yahoo
Playtika Holding Corp (PLTK) Q1 2025 Earnings Call Highlights: Record Revenue Amidst Mixed ...
Revenue: $706 million in Q1 2025, an 8.6% sequential increase and an 8.4% year-over-year increase. Credit Adjusted EBITDA: $167.3 million, down 9% sequentially and 9.9% year over year. GAAP Net Income: $30.6 million, down 42.3% year over year. Direct-to-Consumer Revenue: $179.2 million, up 2.6% sequentially and 4.5% year over year. Bingo Blitz Revenue: $162.4 million, up 2.1% sequentially and 3.1% year over year. Slotomania Revenue: $111.8 million, down 5.5% sequentially and 17.4% year over year. Dice Dreams Revenue: $78.6 million, up 124.5% sequentially. Cost of Revenue: Increased 11.5% year over year. Operating Expenses: Increased 19.4% year over year. Sales and Marketing Expenses: Increased 42.8% year over year. G&A Expenses: Declined 9.2% year over year. Cash and Equivalents: $514.3 million as of March 31, 2025. Average DPU: Increased 15% sequentially and 26.2% year over year to 390,000. Average DAU: Increased 12.5% sequentially and 2.3% year over year to 9 million. ARPDAU: Decreased 2.2% sequentially and increased 7.4% year over year to $0.87. Warning! GuruFocus has detected 4 Warning Signs with PLTK. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Playtika Holding Corp (NASDAQ:PLTK) achieved a historic milestone with over $700 million in revenue for Q1 2025, marking the highest quarterly revenue in the company's history. The global launch of Disney Solitaire on April 17 showed promising signs with strong launch KPIs, indicating potential for rapid revenue growth. Bingo Blitz achieved record-breaking revenue, maintaining its position as the largest mobile bingo game and one of the largest casual games in the industry. The direct-to-consumer (D2C) business achieved record revenues, driven by strong performances from Bingo Blitz, June's Journey, and Solitaire Grand Harvest. Dice Dreams showed impressive revenue growth, becoming one of the top three games by revenue, reflecting successful integration and execution by Playtika's teams. Slotomania experienced disappointing results with a decline in revenue, attributed to ongoing game economy issues and a lack of significant updates over time. GAAP net income decreased by 42.3% year over year, indicating financial challenges despite revenue growth. Adjusted EBITDA margins were impacted by increased investment in performance marketing, resulting in a 9% sequential and 9.9% year-over-year decline. Operating expenses increased by 19.4%, primarily due to higher performance marketing spending and costs associated with the acquisition of SuperPlay. The company anticipates continued revenue declines in its slot titles, requiring time and investment to stabilize and improve performance. Q: Can you discuss the marketing strategy for Disney Solitaire, given its strong start, and how it fits into your overall marketing plans for the year? A: Craig Abrahams, President and CFO, explained that while Disney Solitaire has had a promising launch, marketing expenses typically peak in the first quarter and decline sequentially. The company will allocate marketing resources to games with the best ROI, balancing the new launch with overall marketing budget constraints. Q: What is the future outlook for Slotomania, given its expected continued decline? Is there a plan to stabilize or replace it? A: Robert Antokol, CEO, acknowledged the challenges with Slotomania, noting the game has been in the market for a long time without significant changes. The company plans to stabilize the game by changing its management and making strategic updates. Additionally, they are launching a new slot game to regain market share. Q: Are there any other cost considerations for the rest of the year, especially with the integration of SuperPlay? A: Craig Abrahams stated that while there are no specific cost changes related to SuperPlay, the company is focusing on managing expenses and exploring opportunities in the direct-to-consumer (D2C) space to improve margins. Q: Can you provide an update on the D2C strategy, particularly regarding Amazon Coins and Governor of Poker? A: Robert Antokol emphasized that D2C has always been a strategic advantage for Playtika. The company is well-prepared for market changes and sees D2C as a significant opportunity for increased profitability and EBITDA. Q: How are you balancing marketing investments with the need to manage costs, especially with new game launches? A: Craig Abrahams highlighted that marketing investments are prioritized based on ROI, with a focus on supporting high-performing games. The company aims to optimize marketing spend while ensuring successful game launches. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Associated Press
08-05-2025
- Business
- Associated Press
Playtika Holding Corp. Reports Q1 2025 Financial Results
HERZLIYA, Israel, May 08, 2025 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its first quarter for the period ending March 31, 2025. Financial Highlights 'We are proud to report a record breaking first quarter, with revenue surpassing $700 million - the highest in our history - driven by our industry-leading portfolio and acquisition of SuperPlay,' said Robert Antokol, Chief Executive Officer. 'As we celebrate our fifteenth anniversary, the strength and resilience of our business model are demonstrated in the continued success of our largest title, Bingo Blitz, which delivered all-time high revenue this past quarter.' 'Our DTC business continues to deliver record performance, and we see meaningful growth potential ahead,' said Craig Abrahams, President and Chief Financial Officer. 'Expanding our DTC business remains a key priority to balance our margins as we continue to invest in our growth titles.' Selected Operational Metrics and Business Highlights Playtika Announces Quarterly Dividend Playtika's Board of Directors declared a cash dividend of $0.10 per share of our outstanding common stock, payable on July 7, 2025 to stockholders of record as of the close of business on June 23, 2025. Future dividends are subject to market conditions and approval by our Board of Directors. Financial Outlook We reaffirm our guidance of revenue between $2.80 and $2.85 billion and Adjusted EBITDA between $715 and $740 million. Capital Structure Entered into an agreement to extend the maturity of the Revolving Credit Facility to September 2027 from March 2026 subject to the satisfaction of certain conditions and decreased the aggregate principal amount of the Revolving Credit Facility from $600 million to $550 million. Conference Call Playtika management will host a conference call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) today to discuss the company's results. The conference call can be accessed via a webcast accessible at A replay of the call will be available through the website one hour following the call and will be archived for one year. Summary Operating Results of Playtika Holding Corp. About Playtika Holding Corp. Playtika (NASDAQ: PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has employees across offices worldwide. Forward Looking Information This press release contains 'forward-looking statements' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. All statements other than statements of historical facts contained in this press release, including statements regarding our business strategy, plans and our objectives for future operations, are forward-looking statements. Further, statements that include words such as 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'future,' 'intend,' 'intent,' 'may,' 'might,' 'potential,' 'present,' 'preserve,' 'project,' 'pursue,' 'should,' 'will,' or 'would,' or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves significant risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment and industry. As a result, it is not possible for our management to assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated, predicted or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation: Non-GAAP Financial Measures Adjusted EBITDA and Adjusted Net Income are non-GAAP financial measures and should not be construed as an alternative to net income as an indicator of operating performance, nor as an alternative to cash flow provided by operating activities as a measure of liquidity, or any other performance measure in each case as determined in accordance with GAAP. Our Credit Agreement defines Adjusted EBITDA as net income before (i) interest expense, (ii) interest income, (iii) provision for income taxes, (iv) depreciation and amortization expense, (v) impairment charges, (vi) stock-based compensation, (vii) contingent consideration, (viii) acquisition and related expenses, and (ix) certain other items. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues. We define Adjusted Net Income as net income before (i) impairment charges, and (ii) contingent consideration. Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income as calculated herein may not be comparable to similarly titled measures reported by other companies within the industry and are not determined in accordance with GAAP. Our presentation of Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income should not be construed as an inference that our future results will be unaffected by unusual or unexpected items. _________ (1) Reflects, for all periods, stock-based compensation expense related to the issuance of equity awards to our employees. (2) Includes costs incurred to evaluate and pursue acquisition activities as well as costs incurred by the Company in connection with the evaluation of strategic alternatives. (3) Amounts for the three months ended March 31, 2025 and 2024 consists primarily of $0.7 million and $12.4 million, respectively, incurred by the Company for severance. Contacts Investor Relations Tae Lee [email protected]
Yahoo
17-04-2025
- Business
- Yahoo
Playtika Announces Date of First Quarter 2025 Results Conference Call
HERZLIYA, Israel, April 17, 2025 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ:PLTK) announced today that it will release financial results for the first quarter of 2025 before U.S. markets open on Thursday, May 8, 2025. On the same day, Playtika management will hold a conference call to discuss the results at 5:30 AM Pacific Time, 8:30 AM Eastern Time. A live webcast of the conference call and earnings release materials will be available on Playtika's Investor Relations website at About PlaytikaPlaytika (NASDAQ:PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010, Playtika was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in Herzliya, Israel, and guided by a mission to entertain the world through infinite ways to play, Playtika has employees across offices worldwide. Contact Investor ContactTae LeeSVP, Corporate Finance and Investor RelationsTael@ Source: Playtika Holding Corp.
Yahoo
26-03-2025
- Business
- Yahoo
Wingstop initiated, CarMax upgraded: Wall Street's top analyst calls
The most talked about and market moving research calls around Wall Street are now in one place. Here are today's research calls that investors need to know, as compiled by The 5 Upgrades: Stephens upgraded CarMax (KMX) to Overweight from Equal Weight with a price target of $90, up from $86, ahead of the company's Q4 report due on April 10. The firm cites valuation now being in-line with long-term averages, and an analysis of both real-time unit sales and credit metrics that give it comfort in its calendar 2025 estimates. BofA double upgraded Playtika (PLTK) to Buy from Underperform with a price target of $6.50, up from $6. Given an all-time high next twelve months free cash flow yield of 21% and a dividend yield of 9%, the firm thinks downside to the shares is limited and believes a "share price dislocation" has been driven by the exit of a large shareholder in a low trading liquidity, concerns that Playtika's transition to growth has taken too long and investor preference for mobile ad networks assets over publishers. Morgan Stanley upgraded Global-e Online (GLBE) to Overweight from Equal Weight with a price target of $46, down from $55. The firm believes investor expectations have moderated to a more reasonable level, and it likes Global-e Online's "achievable" growth targets and "cheap optionality" in Morgan Stanley upgraded Range Resources (RRC) to Equal Weight from Underweight with a price target of $49, up from $40. The company initiated a three-year outlook targeting capital efficient production growth, delivering 20% higher volumes by 2027, the firm tells notes. Baird upgraded Waters (WAT) to Outperform from Neutral with a price target of $407, up from $396. The firm has "incremental confidence" in the company's refreshed long-term outlook following the investor day and believes its positive replacement cycle commentary will likely support near-term momentum. Top 5 Downgrades: Susquehanna downgraded J.B. Hunt (JBHT) to Neutral from Positive with a price target of $165, down from $200. The firm is cautious into the spring, saying the truckload cycle will likely get worse before it gets better. BWG Global downgraded its view of Enphase Energy (ENPH) to Negative from Mixed, citing solar inverter checks that point to unit orders during Q1 below installers' December expectations. Piper Sandler downgraded Westlake (WLK) to Neutral from Overweight with a price target of $120, down from $135. The firm says Westlake's midcycle earnings power is lower than previous expectations. Jefferies downgraded ArcelorMittal (MT) to Hold from Buy with an unchanged price target of $33. The firm now expects a period of share price consolidation in the near term, saying Mexico and Canada uncertainty remains. Morgan Stanley downgraded Cemex (CX) to Equal Weight from Overweight with a price target of $13, down from $14. The firm cites the uncertain macro backdrop and growing evidence of capex deceleration in Mexico for the downgrade. Top 5 Initiations: Wells Fargo initiated coverage of Wingstop (WING) with an Overweight rating and $270 price target. While a tough industry backdrop, weak first half of 2025 comps, and a "growthy" valuation multiple present near-term hurdles for the shares, there is a re-rate potential into "much easier" second half of 2025 compares, the firm tells investors in a research note. Wells Fargo initiated coverage of Shake Shack (SHAK) with an Equal Weight rating and $95 price target. The firm believes expectations are high, creating risk to Street estimates. Wells Fargo initiated coverage of Dutch Bros (BROS) with an Overweight rating and $80 price target. Dutch Bros is among the best consumer growth stories, with a "disruptive" strategy, sizable white space, margin upside, and comp drivers over 2025 and 2026, the firm tells investors in a research note. Morgan Stanley initiated coverage of Universal Health (UHS) with an Equal Weight rating and $200 price target. The firm likes the company's leadership in inpatient behavioral health but says uncertainty around potential government spending cuts is a near-term overhang on the shares. Morgan Stanley initiated coverage of Tenet Healthcare (THC) with an Overweight rating and $165 price target. The firm says the company's "significant" business model and balance sheet transformation has yet to be captured in the stock's multiple. Sign in to access your portfolio
