Playstudios reported a $28.7 million net loss for the entire year and the fourth quarter of 2024. While adjusted AEBITDA decreased 9.2% to $56.5 million, the company’s overall sales for the year decreased 6.9% to $289.4 million.
In 2024, Playstudios launched a cost-cutting program to address financial losses. This involved laying off 30% of its employees, stopping the creation of small-scale games, and combining important company operations. The corporation anticipates saving between $25 million and $30 million a year as a result of these improvements.
Despite a 5.7% year-over-year reduction, Playstudios’ largest source of revenue, the playGames sector, continued to contribute $289.4 million. In the meantime, the playAwards division’s FY2024 income of $62,000 was a significant decrease from the $4.2 million it made in Q4 2023.
CEO Highlights Business Optimization and Growth Plans
Despite financial struggles, Playstudios Chairman and CEO Andrew Pascal remains optimistic. He stated, “2024 closed with revenue and Consolidated AEBITDA in line with guidance despite continued industry pressures. More importantly, we’re entering 2025 with a more structured, cost-efficient business model geared towards growth and shareholder returns.”
Pascal also emphasized the company’s focus on managing its balance sheet in 2025. “The balance sheet will also be a focus in 2025 as we continue to assess the best ways to deploy our sizable cash holdings. Our priority will be maximizing shareholder value through strategic capital allocation, including potential acquisitions, investments in growth-oriented initiatives, and exploring other ways of returning value to our shareholders,” he added.
Playstudios made $67.8 million in Q4 2024, a 12.1% decrease from the previous year. For the quarter, the company reported a net loss of $22.4 million, which was about $3 million more than in Q3. Additionally, adjusted AEBITDA fell 15.3% to $12.5 million.
After reporting no earnings in Q4 2023, the playAwards division witnessed a minor rise in revenue, pulling in $57,000 during Q4. The playGames sector, meanwhile, posted revenue of $67.7 million, a 12.2% decrease from the year before.
With an adjusted EBITDA of between $45 million and $55 million, Playstudios anticipates FY2025 sales to be between $250 million and $270 million.
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