Playtika's Q2 2025: Contradictions in D2C Strategy, Slotomania Turnaround, and Revenue Goals

Direct-to-consumer strategy and ambitions, slotomania turnaround and strategy, D2C revenue goals and App Store fees, App Store fee changes and D2C growth strategy, Slotomania stabilization and strategy are the key contradictions discussed in Playtika's latest 2025Q2 earnings call.



Revenue and EBITDA Performance:
- Playtika reported revenue of $696 million and adjusted EBITDA of $167 million for Q2 '25.
- The slight sequential decline in revenue was primarily due to the continued decline in Slotomania, but year-over-year growth was driven by the acquisition of new game portfolios.

Launch Success and Strategic Investments:
- Disney Solitaire achieved a $100 million annual run rate in revenue, contributing to growth in the SuperPlay portfolio.
- Investments in category-leading games and new game development are expected to drive long-term growth, with a focus on expanding the direct-to-consumer (D2C) business.

Gaming Strategy and D2C Penetration:
- Playtika aims to increase its long-term D2C target to 40% of total revenues, up from 30%.
- This strategic shift is to offset margin pressure from mature titles and support increased free cash flow.

Slotomania Challenges and New Game Development:
- Slotomania faced a 22.7% decline in revenue sequentially and 35.4% year-over-year, due to game economy challenges.
- Efforts to stabilize the game continue, and a new slot game is expected to launch in Q4 2025, aiming to regain market share.