Quarterly Report: Q1 2021

Playtika Holding Corp. demonstrated robust financial growth during the first quarter of 2021, a period marked by the company’s transition to a publicly traded entity following its January initial public offering. Revenue reached $638.9 million, representing a significant increase from the $534.2 million recorded in the same period of the previous year. This growth was primarily fueled by enhanced monetization strategies and new content releases, which successfully offset a year-over-year decline in average daily and monthly active users. Key performance indicators reflected this shift, with average daily payer conversion rising to 2.8% and average revenue per daily active user reaching $0.68.

The company’s financial position remains characterized by high liquidity and strategic debt management. Following the IPO, cash and cash equivalents grew to $966.4 million, providing a stable foundation for operations. During the quarter, the company successfully restructured its capital, refinancing its existing term loan with a new $1.9 billion senior secured term loan and issuing $600 million in senior notes due 2029. Despite maintaining $2.45 billion in total debt, the company remains in compliance with all financial maintenance covenants and utilizes interest rate swaps and forward contracts to mitigate exposure to market volatility and foreign currency fluctuations.

Operating in the competitive mobile gaming sector, the company faces inherent risks, including a heavy reliance on third-party platforms like Apple, Google, and Facebook, which account for 90% of accounts receivable. Furthermore, the business model is sensitive to the behavior of a small percentage of high-value users. While operating expenses increased due to headcount growth, stock-based compensation, and one-time costs associated with the IPO and debt refinancing, management maintains that current resources are sufficient to support long-term operational needs. The company continues to prioritize retention through multi-year plans tied to Adjusted EBITDA, which reached $258.0 million for the quarter.