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Playtika Holding Corp. Second Quarter 2023 Results

8 Aug 202314 pages~13 min full read

Global

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Key insights

7 takeaways · ~3 min read

01
Playtika reported Q2 2023 revenue of $642.8 million, a 2.5% year-over-year decrease, while net income surged 108% to $75.7 million.See it on page 3
02
Credit Adjusted EBITDA rose 6.7% year-over-year to $215.0 million, achieving a 33.4% margin.See it on page 6
03
Direct-to-Consumer platforms grew 9.1% sequentially, offering a more favorable cost structure than third-party distribution channels.See it on page 5
04
Portfolio performance was mixed: Solitaire Grand Harvest revenue grew 26.2% year-over-year, while Slotomania revenue declined 9.9%.See it on page 4
05
Average Daily Paying Users dropped 5.8% sequentially to 307,000, though Average Payer Conversion remained stable at 3.6%.See it on page 7
06
The company maintains a strong liquidity position with $955.1 million in cash and no near-term debt maturities.See it on page 9
07
Full-year 2023 guidance targets revenue between $2,570 million and $2,620 million, with management prioritizing the higher end of the $805 million to $830 million EBITDA range.See it on page 10

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Summary

Playtika Holding Corp.’s second quarter 2023 results reflect a period of strategic stabilization and operational focus within the mobile gaming sector. The company reported quarterly revenue of $642.8 million, representing a 2.0% sequential decline and a 2.5% year-over-year decrease. Despite the slight revenue contraction, the company achieved a net income of $75.7 million, marking a 108.0% increase compared to the same period in the previous year. Credit Adjusted EBITDA reached $215.0 million, a 6.7% year-over-year improvement, supported by a 33.4% margin.

Key performance indicators highlight a mixed engagement landscape. Average Daily Paying Users fell to 307,000, a 5.8% sequential decrease, while Average Payer Conversion remained steady at 3.6%. The company’s portfolio performance was anchored by Bingo Blitz, which generated $156.3 million in revenue, and Solitaire Grand Harvest, which saw a 26.2% year-over-year revenue increase. Conversely, Slotomania experienced a 9.9% year-over-year revenue decline. A notable strategic success was the growth of Direct-to-Consumer platforms, which saw revenue increase 9.1% sequentially, providing a more favorable cost structure compared to third-party distribution channels.

The company maintains a strong liquidity position with $955.1 million in cash and cash equivalents and no near-term debt maturities. Looking ahead to the full fiscal year 2023, the company projects revenue between $2,570 million and $2,620 million, with Credit Adjusted EBITDA guidance set at $805 million to $830 million. Management expects to operate at the lower end of the revenue range while targeting the higher end of the EBITDA range, supported by a reduction in planned capital expenditures to between $100 million and $105 million.