Playtika Holding Corp. Q2 2023 Prepared Remarks

Playtika Holding Corp.’s second quarter 2023 financial results reflect a strategic pivot toward operational efficiency and the integration of artificial intelligence to navigate a challenging mobile gaming market. The company reported revenue of $642.8 million, representing a 2.5% year-over-year decline, while net income rose significantly to $75.7 million compared to $36.4 million in the same period of 2022. Credit Adjusted EBITDA reached $215.0 million, a 6.7% year-over-year increase, signaling successful cost-management initiatives, including a reduction in force and decreased research and development spending.

The company’s portfolio performance showed a divergence between segments. The casual gaming category, which now accounts for a record 56.8% of total revenue, grew 3.7% year-over-year, bolstered by strong performances from Bingo Blitz, Solitaire Grand Harvest, and June’s Journey. Conversely, the social casino segment experienced a 9.9% year-over-year revenue decline. Direct-to-consumer platforms emerged as a key growth driver, generating a record $165.3 million and accounting for 25.7% of total revenue.

Operational strategy remains focused on leveraging AI-driven tools for user acquisition and game optimization, with plans to scale these capabilities across additional studios by the end of 2023. The company continues to prioritize profitability and maintains a strong liquidity position, ending the quarter with approximately $955.1 million in cash and cash equivalents. Looking ahead, management expects to reach the low end of its full-year revenue guidance while trending toward the higher end of its Credit Adjusted EBITDA targets. Future growth remains tied to a disciplined approach to mergers and acquisitions, exemplified by the recent move to acquire the Governor of Poker franchise to expand its footprint in the European social poker market.