Corsair soars after T2 gains while Playtika falls

Last week was of great interest for gaming investors due to quarterly results. Although it was not a favorable week, the Roundhill iGaming ETF ended in the red, despite the S&P 500 rising by 3.6%. Corsair Gaming and Genius Sports stood out as notable winners, while Playtika Holdings and Flutter Entertainment were among the losers.

Notable Earnings in Corsair Gaming

Corsair Gaming, listed on the NYSE under the symbol CRSR, was the biggest winner, with its shares increasing by 35.25%. Although its second-quarter revenue decreased by 2% year-on-year to $314.3 million, it exceeded market expectations. Additionally, the company reported a GAAP profit of $9.1 million, compared to a loss of $20.3 million in the comparable quarter last year. Corsair’s management also improved its annual forecast: revenues are now expected to be between $1.40 and $1.47 billion, and adjusted earnings per share (EPS) were raised to between 85 and 94 cents.

Genius Sports also showed strong performance in T2. Its revenue rose 65% year-on-year to $196 million, surpassing its forecast of $185 million. Following these results, the company adjusted its annual guidance to revenues between $1.005 and $1.025 billion.

Negative Performance of Playtika

Playtika Holdings fell more than 26% after its quarterly forecasts did not please investors. Although its T2 results were in line with expectations, news that its full-year revenue and adjusted EBITDA could be at the lower end of its projected ranges raised concerns. Playtika also announced cuts to marketing spending of up to 70% on titles like Disney Solitaire.

In the case of Flutter Entertainment, shares dropped 9.31%. Despite its T2 revenue beating estimates, the EPS was disappointing at 49 cents. Additionally, the company lowered its revenue and EBITDA forecasts for the U.S. market.

Implications for the Prediction Market Industry

The prediction market sector continues to grow explosively. Polymarket and Kalshi are seeking significant funding rounds, valuing Polymarket at over $20 billion and Kalshi seeking a valuation of $40 billion. In another development, Polymarket signed a deal with the ATP Tour, becoming the official prediction market provider for the men's professional tennis circuit.

Other Relevant Developments

Macau presented its visitor spending metrics for the first half of the year, showing revenues of $5.51 billion, an increase of 17.1%. This data indicates a stabilization in business after the downturn during the FIFA World Cup.