Key points
- Revenue of $28.5m, down 21% YoY
- EBITDA loss of $2.8m vs $12.2m profit in pcp
- FY25 revenue guidance reduced to $50-54m, EBITDA loss of $6-10m
Full summary
PlaySide Studios, Australia's largest video game developer and publisher, has reported its unaudited financial results for the half-year ended 31 December 2024 (1HFY25) and provided an update on its trading performance and FY25 guidance. Revenue for the period was $28.5 million, down 21% from the prior corresponding period (pcp), with original IP revenue declining 44% to $9.9 million and work-for-hire revenue remaining relatively flat at $18.6 million. The company reported an EBITDA loss of $2.8 million, compared to a $12.2 million profit in the pcp. The decline was attributed to higher average headcount on a lower revenue base, as well as marketing initiatives of around $3.5 million related to major original IP projects currently in development. Closing cash balance was $28.5 million, down from $37.1 million at the end of FY24. For FY25, PlaySide has reduced its guidance, with revenue now expected to be $50-54 million (previously $62-68 million), comprising $17-18 million in original IP revenue and $33-36 million in work-for-hire revenue. The company also expects an EBITDA loss of $6-10 million (previously $0-5 million profit) and a closing cash balance of $10-15 million (previously $15-20 million). The reduction in expected revenue is primarily due to delays in securing new work-for-hire contracts and lower-than-expected sales for the original IP title 'Kill Knight', despite the game receiving strong reviews. PlaySide remains excited about its pipeline of original IP titles, including 'MOUSE: P.I. For Hire', a Game of Thrones real-time strategy game, and a Dumb Ways to Die console title, all of which are expected to launch from the second half of calendar 2025 onward.
Guidance
FY25 revenue of $50-54m, comprising $17-18m in original IP revenue and $33-36m in work-for-hire revenue. EBITDA loss of $6-10m. Closing cash balance of $10-15m.
Outlook
PlaySide remains excited about its pipeline of original IP titles, including 'MOUSE: P.I. For Hire', a Game of Thrones real-time strategy game, and a Dumb Ways to Die console title, all of which are expected to launch from the second half of calendar 2025 onward.