Playtika Holding Corp. Q4 2024 Prepared Remarks

Playtika Holding Corp.’s fourth-quarter 2024 earnings remarks outline a strategic pivot toward long-term revenue growth through portfolio diversification, aggressive studio acquisitions, and a transition away from legacy titles. The company is actively shifting its business model from a reliance on individual game performance to a broader portfolio-based approach, supported by the recent acquisition of SuperPlay and a robust pipeline of upcoming titles, including Disney Solitaire and a new slot-themed game.

Financial performance for the full year 2024 reflected a period of transition, with revenue reaching $2.549 billion, a slight year-over-year decline of 0.7%. Quarterly revenue for Q4 2024 was $650.3 million, representing a 4.8% sequential increase. However, profitability metrics faced pressure, with annual Credit Adjusted EBITDA declining 9.0% to $757.7 million. Management attributes these results to the costs associated with scaling new growth titles and the ongoing decline of legacy slot games. Operating expenses rose 13.7% year-over-year, largely driven by the SuperPlay acquisition and increased marketing investments for titles like Dice Dreams and Domino Dreams.

The company’s methodology for 2025 focuses on stabilizing the core business while reinvesting savings from the conclusion of its cash retention program into high-growth assets. Management expects 2025 to be a transitional year, projecting full-year revenue between $2.80 billion and $2.85 billion and Adjusted EBITDA between $715 million and $740 million. To ensure long-term alignment with shareholder interests, the company is also shifting its executive compensation structure to be more closely tied to stock price performance and total shareholder returns. Moving forward, Playtika plans to maintain a disciplined capital allocation framework, utilizing its free cash flow to fund dividends, share repurchases, and bolt-on acquisitions totaling $300 million to $450 million over the next three years.