Playtika Holding Corp. Q3 2022 Prepared Remarks

Playtika Holding Corp.’s third-quarter 2022 earnings remarks outline a strategic focus on balancing growth in casual gaming franchises with operational efficiency in mature casino-themed titles. The company’s primary thesis centers on leveraging advanced data analytics, artificial intelligence, and live operations to optimize revenue across a diversified portfolio. By prioritizing high-performing casual games and implementing new automation tools through its Digital Studio initiative, the company aims to maintain its leadership position in the mobile gaming market despite a challenging macroeconomic environment and rising user acquisition costs.

Financial results for the quarter showed total revenue of $647.8 million, a 1.9% year-over-year increase. Casual games served as the primary growth engine, rising 14.4% compared to the previous year, with Bingo Blitz emerging as the company’s top-revenue-generating title. Conversely, the casino-themed segment experienced a 10.2% decline, largely due to underperformance in legacy titles like Slotomania and House of Fun. Operational metrics remained resilient, with average daily payer conversion increasing to 3.4% and average revenue per daily active user (ARPDAU) rising 16.4% to $0.78.

The company maintains a strong financial position, reporting $1.26 billion in cash and cash equivalents as of September 30, 2022, before accounting for a $600 million share tender offer. Looking ahead to 2023, the organization intends to stabilize its slot-themed portfolio through improved content roadmaps while continuing to allocate capital toward high-growth casual franchises. Management remains committed to a disciplined, data-driven approach to marketing and resource allocation, emphasizing free cash flow generation and the expansion of its direct-to-consumer platform, which accounted for 23.3% of total revenue during the quarter.