Playtika Holding Corp. Q4 2022 Prepared Remarks

Playtika Holding Corp.’s fourth-quarter 2022 earnings presentation outlines the company’s financial performance and strategic pivot toward operational efficiency amidst a challenging macroeconomic environment for the mobile gaming industry. The primary thesis centers on maintaining profitability and cash flow through rigorous cost discipline, the integration of AI-driven Digital Studio capabilities, and a strategic reallocation of resources toward high-growth franchises rather than new game development.

Financial results for the full year 2022 included $2.616 billion in revenue, representing a 1.3% year-over-year increase, and $275.3 million in net income. While the company saw a 14.6% decline in average daily active users (DAU) to 8.8 million, average revenue per daily active user (ARPDAU) rose 14.7% to $0.78. Key performance drivers included strong growth in Casual titles like Bingo Blitz and Solitaire Grand Harvest, which saw revenue increases of 18.4% and 18.7% respectively. Conversely, the Social Casino segment, specifically Slotomania, experienced an 8.6% decline, prompting a renewed focus on stabilizing core game economies.

To navigate rising user acquisition costs and market headwinds, the company suspended its new game development pipeline and initiated a global workforce reduction expected to yield approximately $33 million in annual Credit Adjusted EBITDA savings. Strategic investments are now concentrated on high-potential external studios, such as the acquisition of Ace Games. Looking ahead to 2023, the company projects revenue between $2.570 billion and $2.620 billion, emphasizing a continued commitment to cost management and the optimization of existing assets to maximize long-term shareholder value.