Playtika Holding Corp. (NASDAQ: PLTK) today released financial
results for its second quarter for the period ending June 30, 2024.
Financial Highlights
- Revenue of $627.0 million decreased
(3.7)% sequentially and (2.5)% year over year.
- DTC platforms revenue of $173.7
million increased 1.3% sequentially and 5.1% year over year.
- Net income of $86.6 million
increased 63.4% sequentially and 14.4% year over year.
- Credit Adjusted EBITDA of $191.0
million increased 2.9% sequentially and decreased (11.2)% year over
year.
- Cash, cash equivalents, and
short-term investments totaled $1.1 billion as of June 30,
2024.
“We are focused on the resilience and potential
of our leading games and our strategic initiatives aimed at
revitalizing our portfolio,” said Robert Antokol, Chief Executive
Officer. “We are actively pursuing opportunities to broaden our
game offerings through M&A. Our focus is on identifying studios
that complement our existing games and drive long-term value.”
“Our focus on our direct-to-consumer business
and our highly disciplined approach to managing operating expenses
has led to a notable improvement in our margins on a sequential
basis,” said Craig Abrahams, President and Chief Financial Officer.
“We are taking steps to ensure sustained growth and profitability
and we remain committed to delivering long-term value to our
players and shareholders, our focus on execution remains
unwavering.”
Selected Operational Metrics and
Business Highlights
- Average Daily Paying Users of 298K
decreased (3.6)% sequentially and (2.9)% year over year.
- Average Payer Conversion of 3.7%,
up from 3.5% in Q1 and 3.6% in Q2 2023.
- Casual games revenue decreased
(4.3)% sequentially and (1.7)% year over year.
- Social casino-themed games revenue
decreased (2.9)% sequentially and (3.4)% year over year.
- Bingo Blitz revenue of $155.7
million decreased (1.2)% sequentially and (0.4)% year over
year.
- June’s Journey revenue of $74.6
million decreased (2.6)% sequentially and increased 1.9% year over
year.
- Slotomania revenue of $133.8
million decreased (1.2)% sequentially and (7.5)% year over
year.
Playtika Announces Quarterly
Dividend
Playtika’s Board of Directors declared a cash
dividend of $0.10 per share of our outstanding common stock,
payable on October 4, 2024 to stockholders of record as of the
close of business on September 20, 2024. Future dividends are
subject to market conditions and approval by our Board of
Directors.
Financial Outlook
For the full year 2024 the company expects
revenue to be toward the bottom end of the previously provided
range of $2.52 - $2.62 billion, Credit Adjusted EBITDA to be in the
middle of the previously provided range of $730 - $770 million, and
capital expenditures to be within a range $95 - $100 million.
Conference Call
Playtika management will host a conference call
at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) today to discuss
the company’s results. The conference call can be accessed via a
webcast accessible at investors.playtika.com. A replay of the call
will be available through the website one hour following the call
and will be archived for one year.
About Playtika Holding
Corp.
Playtika (NASDAQ: PLTK) is a mobile gaming
entertainment and technology market leader with a portfolio of
multiple game titles. Founded in 2010, Playtika was among the first
to offer free-to-play social games on social networks and, shortly
after, on mobile platforms. Headquartered in Herzliya, Israel, and
guided by a mission to entertain the world through infinite ways to
play, Playtika has employees across offices worldwide.
Forward Looking Information
This press release contains “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and Section 21E of the Exchange Act.
All statements other than statements of historical facts contained
in this press release, including statements regarding our business
strategy, plans and our objectives for future operations, are
forward-looking statements. Further, statements that include words
such as “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “future,” “intend,” “intent,” “may,” “might,”
“potential,” “present,” “preserve,” “project,” “pursue,” “should,”
“will,” or “would,” or the negative of these words or other words
or expressions of similar meaning may identify forward-looking
statements.
We have based these forward-looking statements
largely on our current expectations and projections about future
events and trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and
long-term business operations and objectives, and financial needs.
The achievement or success of the matters covered by such
forward-looking statements involves significant risks,
uncertainties and assumptions, including, but not limited to, the
risks and uncertainties discussed in our filings with the
Securities and Exchange Commission. Moreover, we operate in a very
competitive and rapidly changing environment and industry. As a
result, it is not possible for our management to assess the impact
of all factors on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties and
assumptions, the forward-looking statements discussed in this press
release may not occur and actual results could differ materially
and adversely from those anticipated, predicted or implied in the
forward-looking statements.
Important factors that could cause actual
results to differ materially from estimates or projections
contained in the forward-looking statements include without
limitation:
- actions of our majority shareholder
or other third parties that influence us;
- our reliance on third-party
platforms, such as the iOS App Store, Facebook, and Google Play
Store, to distribute our games and collect revenues, and the risk
that such platforms may adversely change their policies;
- our reliance on a limited number of
games to generate the majority of our revenue;
- our reliance on a small percentage
of total users to generate a majority of our revenue;
- our free-to-play business model,
and the value of virtual items sold in our games, is highly
dependent on how we manage the game revenues and pricing
models;
- our inability to identify
acquisition targets that fit our strategy or complete acquisitions
and integrate any acquired businesses successfully or realize the
anticipated benefits of such acquisitions could limit our growth,
disrupt our plans and operations or impact the amount of capital
allocated to mergers and acquisitions;
- our ability to compete in a highly
competitive industry with low barriers to entry;
- our ability to retain existing
players, attract new players and increase the monetization of our
player base;
- we have significant indebtedness
and are subject to the obligations and restrictive covenants under
our debt instruments;
- the impact of the COVID-19 pandemic
or other health epidemics on our business and the economy as a
whole;
- our controlled company status;
- legal or regulatory restrictions or
proceedings could adversely impact our business and limit the
growth of our operations;
- risks related to our international
operations and ownership, including our significant operations in
Israel and Ukraine and the fact that our controlling stockholder is
a Chinese-owned company;
- geopolitical events such as the
Wars in Israel and Ukraine;
- our reliance on key personnel;
- market conditions or other factors
affecting the payment of dividends, including the decision whether
or not to pay a dividend;
- uncertainties regarding the amount
and timing of repurchases under our stock repurchase program;
- security breaches or other
disruptions could compromise our information or our players’
information and expose us to liability; and
- our inability to protect our
intellectual property and proprietary information could adversely
impact our business.
PLAYTIKA HOLDING CORP.CONSOLIDATED BALANCE
SHEETS(In millions, except par
value) |
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
710.3 |
|
|
$ |
1,029.7 |
|
Short-term investments |
|
390.1 |
|
|
|
— |
|
Restricted cash |
|
1.5 |
|
|
|
2.0 |
|
Accounts receivable |
|
160.0 |
|
|
|
171.5 |
|
Prepaid expenses and other current assets |
|
137.1 |
|
|
|
147.9 |
|
Total current assets |
|
1,399.0 |
|
|
|
1,351.1 |
|
Property and equipment,
net |
|
112.2 |
|
|
|
119.9 |
|
Operating lease right-of-use
assets |
|
94.0 |
|
|
|
100.3 |
|
Intangible assets other than
goodwill, net |
|
282.0 |
|
|
|
311.2 |
|
Goodwill |
|
983.8 |
|
|
|
987.2 |
|
Deferred tax assets, net |
|
100.7 |
|
|
|
99.3 |
|
Investments in unconsolidated
entities |
|
48.4 |
|
|
|
54.4 |
|
Other non-current assets |
|
155.2 |
|
|
|
151.6 |
|
Total assets |
$ |
3,175.3 |
|
|
$ |
3,175.0 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
Current
liabilities |
|
|
|
Current maturities of long-term debt |
$ |
16.5 |
|
|
$ |
16.8 |
|
Accounts payable |
|
13.6 |
|
|
|
65.0 |
|
Operating lease liabilities, current |
|
19.0 |
|
|
|
19.5 |
|
Accrued expenses and other current liabilities |
|
412.6 |
|
|
|
438.3 |
|
Total current liabilities |
|
461.7 |
|
|
|
539.6 |
|
Long-term debt |
|
2,394.0 |
|
|
|
2,399.6 |
|
Contingent consideration |
|
22.0 |
|
|
|
20.8 |
|
Other long-term liabilities,
including employee related benefits |
|
305.3 |
|
|
|
318.7 |
|
Operating lease liabilities,
long-term |
|
79.5 |
|
|
|
88.2 |
|
Deferred tax liabilities |
|
25.7 |
|
|
|
29.6 |
|
Total liabilities |
|
3,288.2 |
|
|
|
3,396.5 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity
(deficit) |
|
|
|
Common stock of $0.01 par value; 1,600.0 shares authorized; 371.9
and 370.0 shares issued and outstanding at June 30, 2024 and
December 31, 2023, respectively |
|
4.1 |
|
|
|
4.1 |
|
Treasury stock at cost (51.8 shares at both June 30, 2024 and
December 31, 2023) |
|
(603.5 |
) |
|
|
(603.5 |
) |
Additional paid-in capital |
|
1,311.3 |
|
|
|
1,264.9 |
|
Accumulated other comprehensive income |
|
17.5 |
|
|
|
20.6 |
|
Accumulated deficit |
|
(842.3 |
) |
|
|
(907.6 |
) |
Total stockholders' deficit |
|
(112.9 |
) |
|
|
(221.5 |
) |
Total liabilities and
stockholders’ deficit |
$ |
3,175.3 |
|
|
$ |
3,175.0 |
|
|
PLAYTIKA HOLDING CORP.CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME(In millions,
except for per share
data)(Unaudited) |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
627.0 |
|
|
$ |
642.8 |
|
|
$ |
1,278.2 |
|
|
$ |
1,299.0 |
|
Costs and
expenses |
|
|
|
|
|
|
|
Cost of revenue |
|
168.2 |
|
|
|
178.3 |
|
|
|
345.2 |
|
|
|
364.0 |
|
Research and development |
|
100.6 |
|
|
|
100.3 |
|
|
|
207.5 |
|
|
|
202.7 |
|
Sales and marketing |
|
169.4 |
|
|
|
141.2 |
|
|
|
359.8 |
|
|
|
284.9 |
|
General and administrative |
|
48.1 |
|
|
|
74.1 |
|
|
|
119.9 |
|
|
|
146.1 |
|
Impairment charge |
|
— |
|
|
|
9.7 |
|
|
|
7.0 |
|
|
|
9.7 |
|
Total costs and expenses |
|
486.3 |
|
|
|
503.6 |
|
|
|
1,039.4 |
|
|
|
1,007.4 |
|
Income from
operations |
|
140.7 |
|
|
|
139.2 |
|
|
|
238.8 |
|
|
|
291.6 |
|
Interest and other, net |
|
20.4 |
|
|
|
23.1 |
|
|
|
43.6 |
|
|
|
51.7 |
|
Income before income
taxes |
|
120.3 |
|
|
|
116.1 |
|
|
|
195.2 |
|
|
|
239.9 |
|
Provision for income taxes |
|
33.7 |
|
|
|
40.4 |
|
|
|
55.6 |
|
|
|
80.1 |
|
Net
income |
|
86.6 |
|
|
|
75.7 |
|
|
|
139.6 |
|
|
|
159.8 |
|
Other comprehensive
income (loss) |
|
|
|
|
|
|
|
Foreign currency translation |
|
(1.5 |
) |
|
|
(0.2 |
) |
|
|
(5.5 |
) |
|
|
2.9 |
|
Change in fair value of derivatives |
|
(3.3 |
) |
|
|
14.8 |
|
|
|
2.4 |
|
|
|
7.0 |
|
Total other comprehensive income (loss) |
|
(4.8 |
) |
|
|
14.6 |
|
|
|
(3.1 |
) |
|
|
9.9 |
|
Comprehensive
income |
$ |
81.8 |
|
|
$ |
90.3 |
|
|
$ |
136.5 |
|
|
$ |
169.7 |
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders, basic |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.38 |
|
|
$ |
0.44 |
|
Net income per share
attributable to common stockholders, diluted |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.38 |
|
|
$ |
0.44 |
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, basic |
|
371.4 |
|
|
|
365.9 |
|
|
|
370.9 |
|
|
|
365.3 |
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, diluted |
|
371.8 |
|
|
|
366.4 |
|
|
|
371.3 |
|
|
|
365.8 |
|
|
PLAYTIKA HOLDING CORP.CONSOLIDATED
STATEMENTS OF CASH FLOWS(In
millions)(Unaudited) |
|
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from
operating activities |
$ |
180.1 |
|
|
$ |
227.5 |
|
Cash flows from
investing activities |
|
|
|
Purchase of property and equipment |
|
(23.3 |
) |
|
|
(9.2 |
) |
Capitalization of internal use software costs |
|
(19.5 |
) |
|
|
(18.6 |
) |
Purchase of software for internal use |
|
(15.2 |
) |
|
|
(4.1 |
) |
Purchase of short-term investments |
|
(390.1 |
) |
|
|
— |
|
Other investing activities |
|
(1.0 |
) |
|
|
(1.1 |
) |
Net cash used in investing activities |
|
(449.1 |
) |
|
|
(33.0 |
) |
Cash flows from
financing activities |
|
|
|
Dividend paid |
|
(37.1 |
) |
|
|
— |
|
Repayments on bank borrowings |
|
(9.5 |
) |
|
|
(9.5 |
) |
Payment of tax withholdings on stock-based payments |
|
(1.3 |
) |
|
|
(1.9 |
) |
Net cash out flow for business acquisitions and other |
|
(0.7 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(48.6 |
) |
|
|
(11.4 |
) |
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash |
|
(2.3 |
) |
|
|
3.6 |
|
Net change in cash,
cash equivalents and restricted cash |
|
(319.9 |
) |
|
|
186.7 |
|
Cash, cash equivalents
and restricted cash at the beginning of the period |
|
1,031.7 |
|
|
|
770.4 |
|
Cash, cash equivalents
and restricted cash at the end of the period |
$ |
711.8 |
|
|
$ |
957.1 |
|
|
Non-GAAP Financial Measures
Credit Adjusted EBITDA is a non-GAAP financial
measure and should not be construed as an alternative to net income
as an indicator of operating performance, nor as an alternative to
cash flow provided by operating activities as a measure of
liquidity, or any other performance measure in each case as
determined in accordance with GAAP.
Below is a reconciliation of Credit Adjusted
EBITDA to net income, the closest GAAP financial measure. Our
Credit Agreement defines Adjusted EBITDA (which we call “Credit
Adjusted EBITDA”) as net income before (i) interest expense, (ii)
interest income, (iii) provision for income taxes, (iv)
depreciation and amortization expense, (v) impairment charges, (vi)
stock-based compensation, (vii) contingent consideration, (viii)
acquisition and related expenses, and (ix) certain other items. We
calculate Credit Adjusted EBITDA Margin as Credit Adjusted EBITDA
divided by revenues.
Credit Adjusted EBITDA and Credit Adjusted
EBITDA Margin as calculated herein may not be comparable to
similarly titled measures reported by other companies within the
industry and are not determined in accordance with GAAP. Our
presentation of Credit Adjusted EBITDA and Credit Adjusted EBITDA
Margin should not be construed as an inference that our future
results will be unaffected by unusual or unexpected items.
RECONCILIATION OF NET INCOME TO CREDIT ADJUSTED
EBITDA(In millions) |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net
income |
$ |
86.6 |
|
|
$ |
75.7 |
|
|
$ |
139.6 |
|
|
$ |
159.8 |
|
Provision for income taxes |
|
33.7 |
|
|
|
40.4 |
|
|
|
55.6 |
|
|
|
80.1 |
|
Interest expense and other, net |
|
20.4 |
|
|
|
23.1 |
|
|
|
43.6 |
|
|
|
51.7 |
|
Depreciation and amortization |
|
38.7 |
|
|
|
38.5 |
|
|
|
77.9 |
|
|
|
77.6 |
|
EBITDA |
|
179.4 |
|
|
|
177.7 |
|
|
|
316.7 |
|
|
|
369.2 |
|
Stock-based compensation(1) |
|
22.9 |
|
|
|
25.3 |
|
|
|
46.6 |
|
|
|
54.5 |
|
Impairment charge |
|
— |
|
|
|
9.7 |
|
|
|
7.0 |
|
|
|
9.7 |
|
Changes in estimated value of contingent consideration |
|
(16.3 |
) |
|
|
— |
|
|
|
(13.4 |
) |
|
|
— |
|
Acquisition and related expenses(2) |
|
0.5 |
|
|
|
1.9 |
|
|
|
2.7 |
|
|
|
3.1 |
|
Other items(3) |
|
4.5 |
|
|
|
0.4 |
|
|
|
17.0 |
|
|
|
1.2 |
|
Credit Adjusted
EBITDA |
$ |
191.0 |
|
|
$ |
215.0 |
|
|
$ |
376.6 |
|
|
$ |
437.7 |
|
Net income
margin |
|
13.8 |
% |
|
|
11.8 |
% |
|
|
10.9 |
% |
|
|
12.3 |
% |
Credit Adjusted EBITDA
margin |
|
30.5 |
% |
|
|
33.4 |
% |
|
|
29.5 |
% |
|
|
33.7 |
% |
|
|
_________ |
|
|
|
(1) |
|
Reflects, for all periods, stock-based compensation expense related
to the issuance of equity awards to our employees. |
(2) |
|
Amounts for all periods include
costs incurred to evaluate and pursue acquisition activities as
well as costs incurred by the Company in connection with the
evaluation of strategic alternatives. |
(3) |
|
The amounts for the three and six
months ended June 30, 2024 consists primarily of $2.6 million
and $11.2 million, respectively, incurred by the Company for
severance. The amount for the six months ended June 30, 2024
also includes $5.1 million incurred by the Company related to
restructuring activities. The amounts for the three and six months
ended June 30, 2023 consists primarily of $0.1 million and
$0.7 million, respectively, incurred by the Company for severance
and, for the three months ended June 30, 2023, $0.2 million for
relocation and support provided to employees due to the war in
Ukraine. |
|
|
|
Contacts |
Investor Relations |
|
Press Contact |
Tae Lee |
|
Eric Barnes |
Tael@playtika.com |
|
Eric.barnes@trailrunnerint.com |
|
|
|
Source: Playtika Holding Corp
Playtika (NASDAQ:PLTK)
過去 株価チャート
から 8 2024 まで 9 2024
Playtika (NASDAQ:PLTK)
過去 株価チャート
から 9 2023 まで 9 2024