Playtika Holding Corp. Reveals Q4 and Annual Financial Insights

Playtika Holding Corp. Financial Overview

Playtika Holding Corp. (NASDAQ: PLTK) has recently unveiled its financial performance for the fourth quarter and the full fiscal year. The numbers reveal exciting insights into the company's growth trajectory, product performance, and strategic initiatives.

Fourth Quarter Financial Highlights

The financial results for the fourth quarter indicate a revenue of $650.3 million, an increase of 4.8% sequentially and 1.9% year-over-year. The Direct-to-Consumer (DTC) platforms generated $174.6 million, reflecting a slight sequential increase while showing robust growth of 8.0% compared to the previous year.

Profitability Metrics

The report shows a GAAP net income of $(16.7) million, a decrease of 142.5% sequentially and 144.8% year-over-year. Despite this, the Credit Adjusted EBITDA totaled $183.9 million, although it decreased by 6.7% sequentially and 2.6% year-over-year. Cash and cash equivalents stood at a solid $565.8 million by the end of the quarter, emphasizing financial health.

Annual Financial Overview

For the fiscal year 2024, Playtika reported total revenue of $2,549.3 million, a slight reduction from $2,567.0 million in 2023. Direct-to-Consumer platforms also performed well, reaching $694.2 million, up from $639.4 million in the prior year. Despite the top line pressures, net income was $162.2 million, a notable decline from $235.0 million a year earlier. Credit Adjusted EBITDA for the year was reported at $757.7 million, down from $832.2 million previously.

Cash Flow and Dividends

Free cash flow generated was $396.8 million, slightly lower compared to $436.4 million from the previous year. The Board of Directors decided on a cash dividend of $0.10 per share, payable on a future date to stockholders of record.

Operational Highlights

During the fourth quarter, Playtika experienced an uptick in Average Daily Paying Users (DPUs), climbing to 339,000, which is a 12.6% sequential rise and a 10.8% year-over-year increase. However, the revenue from social casino games reflected a decline, showing the competitive landscape's complexities.

Strategic Focus and Investments

CEO Robert Antokol highlighted the company's commitment to innovation and growth through acquisitions, such as the integration of SuperPlay. This move is expected to enhance their game portfolio, driving future growth and shareholder value. CFO Craig Abrahams emphasized their strategy of capital allocation and the anticipated transitional phase as new studios come online. Significant investments are earmarked for these acquisitions, with expectations for resumed EBITDA growth starting in the coming years.

Future Financial Outlook

Looking ahead, Playtika anticipates FY2025 revenues between $2.80 billion and $2.85 billion, with Credit Adjusted EBITDA projected to land between $715 million and $740 million. Capital expenditures are expected to be around $95 million, and the effective tax rate is anticipated to be around 35%.

Frequently Asked Questions

What are the key financial results for Playtika in Q4 2024?

Playtika reported a revenue of $650.3 million and a net income of $(16.7) million.

How did Playtika perform in FY2024?

The total revenue for FY2024 was $2,549.3 million, down from $2,567 million in 2023, with a net income of $162.2 million.

What dividends did Playtika announce?

Playtika's Board of Directors declared a cash dividend of $0.10 per share to be paid to stockholders on record by a specified date.

What is Playtika's strategy for growth?

Playtika aims to grow through strategic acquisitions and the introduction of new games, focusing on enhancing shareholder value.

What is the expected financial outlook for Playtika in FY2025?

The company expects revenues between $2.80 billion and $2.85 billion, with Credit Adjusted EBITDA between $715 and $740 million.

Contacts

Investor Relations
Tae Lee
Tael@playtika.com

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