Playtika Holding Corp. Q3 2024 Prepared Remarks

Playtika Holding Corp.’s third quarter 2024 earnings remarks outline a strategic focus on portfolio expansion through mergers and acquisitions, specifically highlighting the pending acquisition of SuperPlay. The company emphasizes that M&A remains a cornerstone of its growth strategy, noting that nine of its top eleven titles were acquired. Management intends to leverage its scale to enhance the performance of SuperPlay’s existing titles, such as Dice Dreams and Domino Dreams, while maintaining financial discipline through a balanced payment structure that includes performance-based earn-outs.

Financial results for the quarter reflect a mixed performance, with revenue reaching $620.8 million, a 1.5% decrease year-over-year. Credit Adjusted EBITDA was $197.2 million, down 4.1% from the previous year, though margins improved sequentially. The Direct-to-Consumer segment remains a bright spot, growing 8.3% year-over-year to $174.4 million. While Bingo Blitz and Solitaire Grand Harvest showed positive momentum, Slotomania underperformed expectations, prompting a strategic shift toward product-focused updates and licensed content to drive engagement.

Operational metrics indicate a decline in Average Daily Active Users (DAU) to 7.6 million, largely attributed to the reallocation of resources away from smaller casual titles. However, Average Revenue Per Daily Active User (ARPDAU) rose 9.9% year-over-year to $0.89. Looking ahead, the company has adjusted its full-year revenue guidance to a range of $2.505 billion to $2.520 billion while raising its Credit Adjusted EBITDA outlook to between $755 million and $765 million. The company maintains a strong liquidity position with $1.2 billion in cash and short-term investments, excluding the anticipated $700 million upfront payment for the SuperPlay acquisition.