Playtika’s Earnings Call: Mixed Sentiment Amid Growth

Playtika Holding Corp. ((PLTK)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Playtika Holding Corp. presented a mixed sentiment, characterized by robust performance in direct-to-consumer revenue and notable successes with Disney Solitaire and Bingo Blitz. However, these achievements were somewhat overshadowed by declines in Slotomania and June’s Journey revenues, coupled with increased operating expenses.

Record Direct-to-Consumer Revenue

Playtika achieved a remarkable milestone in its direct-to-consumer (D2C) revenue, reaching an all-time high of $209.3 million. This represents a 19% sequential increase and a 20% year-over-year rise, showcasing the company’s strong growth trajectory in this segment.

Disney Solitaire’s Exceptional Growth

Disney Solitaire emerged as a standout performer, scaling faster than any other title in Playtika’s history. The game is currently tracking at an impressive annualized run rate exceeding $200 million, highlighting its significant contribution to the company’s portfolio.

Bingo Blitz’s Continued Success

Bingo Blitz continued its upward trajectory, delivering another record quarter with revenues of $162.6 million. This marks a 1.5% sequential increase and a 1.7% year-over-year growth, reinforcing its position as a key revenue driver for Playtika.

Adjusted EBITDA Growth

The company’s adjusted EBITDA saw substantial growth, reaching $217.5 million. This represents a 30.2% sequential increase and a 10.3% year-over-year rise, reflecting Playtika’s efficient cost management and operational performance.

Slotomania Revenue Decline

Slotomania experienced a significant revenue decline, with figures dropping to $68.5 million. This represents a 20.8% sequential and a 46.7% year-over-year decrease, attributed to a deliberate rebalancing of the game economy.

June’s Journey Revenue Decrease

June’s Journey also saw a decline in revenue, down to $68.3 million, marking a 1.2% sequential and a 2.7% year-over-year decrease. This reflects challenges in maintaining its previous growth levels.

Increased Operating Expenses

Operating expenses rose by 21.6% year-over-year, driven primarily by higher performance marketing investments and increased contingent consideration from the SuperPlay acquisition. This increase in expenses indicates a strategic investment in future growth.

Forward-Looking Guidance

Playtika’s forward-looking guidance remains optimistic, with the company reporting a quarterly revenue of $674.6 million, an 8.7% year-over-year increase. The GAAP net income reached $39.1 million, up 17.8% sequentially. The company aims to increase its D2C revenue to 40% of total revenue in the next two years, with Disney Solitaire continuing to perform strongly. Despite the decline in Slotomania’s revenue, Playtika maintains its full-year guidance for both revenue and adjusted EBITDA.

In summary, Playtika’s earnings call reflected a positive sentiment overall, driven by strong performances in key areas such as direct-to-consumer revenue and standout titles like Disney Solitaire and Bingo Blitz. However, challenges remain with declining revenues in Slotomania and June’s Journey, alongside rising operating expenses. The company’s forward-looking guidance suggests continued growth and strategic investments, positioning Playtika for future success.