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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
`
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____

Commission File Number: 001-39896

PLAYTIKA HOLDING CORP.
(Exact Name of Registrant as Specified in its Charter)

Delaware81-3634591
(State of other jurisdiction(I.R.S. Employer
of incorporation or organization)Identification No.)
c/o Playtika Ltd.
HaChoshlim St 8
Herzliya Pituach, Israel
972-73-316-3251
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valuePLTKThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of August 5, 2024 the registrant had 371,978,224 shares of common stock, $0.01 par value per share, outstanding.



PLAYTIKA HOLDING CORP.
FORM 10-Q
INDEX

Page
PART I.
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
PART II.
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
SIGNATURES



CAUTIONARY NOTE ABOUT FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains or may contain forward-looking statements within the meaning of the 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 quarterly report, 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,” “future,” “expect,” “intend,” “may,” “might,” “plan,” “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 important factors discussed in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2024. 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 Quarterly Report on Form 10-Q 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;
the impact of an economic recession or periods of increased inflation, and any reductions to household spending on the types of discretionary entertainment we offer;
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.

Additional factors that may cause future events and actual results, financial or otherwise, to differ, potentially materially, from those discussed in or implied by the forward-looking statements include the risks and uncertainties discussed in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K filed with the SEC on February 26, 2024. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur, and reported results should not be considered as an indication of future performance. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Except as required by law, we undertake no obligation to update any forward-looking statements for any reason to conform these statements to actual results or to changes in our expectations.



Part I.        FINANCIAL INFORMATION

Item 1.        FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
June 30,
2024
December 31,
2023
ASSETS(Unaudited)
Current assets
Cash and cash equivalents$710.3 $1,029.7 
Short-term investments390.1  
Restricted cash1.5 2.0 
Accounts receivable160.0 171.5 
Prepaid expenses and other current assets137.1 147.9 
Total current assets1,399.0 1,351.1 
Property and equipment, net112.2 119.9 
Operating lease right-of-use assets94.0 100.3 
Intangible assets other than goodwill, net282.0 311.2 
Goodwill983.8 987.2 
Deferred tax assets, net100.7 99.3 
Investments in unconsolidated entities48.4 54.4 
Other non-current assets155.2 151.6 
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 payable13.6 65.0 
Operating lease liabilities, current19.0 19.5 
Accrued expenses and other current liabilities412.6 438.3 
Total current liabilities461.7 539.6 
Long-term debt2,394.0 2,399.6 
Contingent consideration22.0 20.8 
Other long-term liabilities, including employee related benefits305.3 318.7 
Operating lease liabilities, long-term79.5 88.2 
Deferred tax liabilities25.7 29.6 
Total liabilities3,288.2 3,396.5 
Commitments and contingencies (Note 8)
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 capital1,311.3 1,264.9 
Accumulated other comprehensive income17.5 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 


The accompanying notes are an integral part of these consolidated financial statements.
-1-


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
(Unaudited)

Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Revenues$627.0 $642.8 $1,278.2 $1,299.0 
Costs and expenses
Cost of revenue168.2 178.3 345.2 364.0 
Research and development100.6 100.3 207.5 202.7 
Sales and marketing169.4 141.2 359.8 284.9 
General and administrative48.1 74.1 119.9 146.1 
Impairment charge 9.7 7.0 9.7 
Total costs and expenses486.3 503.6 1,039.4 1,007.4 
Income from operations140.7 139.2 238.8 291.6 
Interest and other, net20.4 23.1 43.6 51.7 
Income before income taxes120.3 116.1 195.2 239.9 
Provision for income taxes33.7 40.4 55.6 80.1 
Net income86.6 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, basic371.4 365.9 370.9 365.3 
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted371.8 366.4 371.3 365.8 
The accompanying notes are an integral part of these consolidated financial statements.
-2-


CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In millions, except for per share data)
(Unaudited)

Share capital
SharesAmountTreasury stock
Additional
paid-in
capital
Accumulated
other comprehensive
income
Retained earnings (Accumulated deficit)Total stockholders' equity (deficit)
Balances at January 1, 2024
370.0 $4.1 $(603.5)$1,264.9 $20.6 $(907.6)$(221.5)
Net income— — — — — 53.0 53.0 
Cash dividend declared ($0.10 per share)
— — — — — (37.1)(37.1)
Stock-based compensation— — — 24.2 — — 24.2 
Issuance of shares upon vesting of RSUs and PSUs1.0 *— (*)— —  
Income tax withholding related to vesting of restricted stock units and other— — — (0.7)— — (0.7)
Other comprehensive income— — — — 1.7 — 1.7 
Balances at March 31, 2024371.0 4.1 (603.5)1,288.4 22.3 (891.7)(180.4)
Net income— — — — — 86.6 86.6 
Cash dividend declared ($0.10 per share)
— — — — — (37.2)(37.2)
Stock-based compensation— — — 23.5 — — 23.5 
Issuance of shares upon vesting of RSUs0.9 *— (*)— —  
Income tax withholding related to vesting of restricted stock units and other— — — (0.6)— — (0.6)
Other comprehensive loss— — — — (4.8)— (4.8)
Balances at June 30, 2024371.9 $4.1 $(603.5)$1,311.3 $17.5 $(842.3)$(112.9)


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Share capital
SharesAmountTreasury stock
Additional
paid-in
capital
Accumulated
other comprehensive income (loss)
Retained earnings (Accumulated deficit)Total stockholders' equity (deficit)
Balances at January 1, 2023
363.6 $4.1 $(603.5)$1,155.8 $17.6 $(1,142.6)$(568.6)
Net income— — — — — 84.1 84.1 
Stock-based compensation— — — 29.8 — — 29.8 
Issuance of shares upon vesting of RSUs and PSUs2.0 *— (*)— —  
Income tax withholding related to vesting of restricted stock units and other— — — (1.3)— — (1.3)
Other comprehensive loss— — — — (4.7)— (4.7)
Balances at March 31, 2023365.6 4.1 (603.5)1,184.3 12.9 (1,058.5)(460.7)
Net income— — — — — 75.7 75.7 
Share-based compensation— — — 26.1 — — 26.1 
Issuance of shares upon vesting of RSUs0.7 *— (*)— — — 
Income tax withholding related to vesting of restricted stock units and other— — — (0.6)— — (0.6)
Other comprehensive income— — — — 14.6 — 14.6 
Balances at June 30, 2023366.3 $4.1 $(603.5)$1,209.8 $27.5 $(982.8)$(344.9)
_______

*    Represents an amount less than 0.1 or $0.1

The accompanying notes are an integral part of these consolidated financial statements.
-4-


CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

Six months ended
June 30,
20242023
Cash flows from operating activities
Net income$139.6 $159.8 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation23.8 22.1 
Amortization of intangible assets54.1 55.5 
Impairment charges7.0 9.7 
Stock-based compensation46.6 54.5 
Amortization of loan discount3.7 3.4 
Change in contingent consideration(13.4) 
Change in deferred taxes, net(6.4)(7.8)
Loss from foreign currency0.5 (3.1)
Non-cash lease expenses (income)(3.0) 
Changes in operating assets and liabilities: 
Accounts receivable10.6 (18.4)
Prepaid expenses and other current and non-current assets8.4 16.2 
Accounts payable (34.3)(9.4)
Accrued expenses and other current and non-current liabilities(57.1)(55.0)
Net cash provided by 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 period1,031.7 770.4 
Cash, cash equivalents and restricted cash at the end of the period$711.8 $957.1 

-5-



Six months ended
June 30,
20242023
Supplemental cash flow disclosures
Cash paid for income taxes$62.9 $90.8 
Cash paid for interest$73.9 $73.4 
Cash received for interest$27.5 $9.7 
Non-cash financing and investing activities
Accrued dividend$37.2 $ 
Right-of-use assets acquired under operating leases$3.4 $13.1 
Capitalization of stock-based compensation costs$1.1 $1.4 
The accompanying notes are an integral part of these consolidated financial statements.
-6-


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(In millions, unless specified otherwise)

NOTE 1.    ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of business and organization

Playtika Holding Corp. (“Playtika”) and its subsidiaries (together with Playtika, the “Company”) is one of the world’s leading developers of mobile games creating fun, innovative experiences that entertain and engage its users. It has built best-in-class live game operations services and proprietary technology tools to support its portfolio of games which enable it to drive strong user engagement and monetization. The Company’s games are free-to-play, and the Company seeks to provide novel, curated in-game content and offers to its users, at optimal points in their game journeys to drive user engagement and monetization.

Basis of presentation and consolidation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include Playtika and all subsidiaries in which the Company has a controlling financial interest. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where the Company has determined that it has significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2023 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, consisting of normal, recurring adjustments, and all intercompany balances and transactions have been eliminated in the consolidation. Certain amounts in the consolidated financial statements for the previous years have been reclassified to be consistent with current year presentation. These reclassifications had no effect on previously reported net income. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 26, 2024.

Use of estimates

The preparation of the interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Amendment to Stock Purchase Agreement

On September 14, 2023, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire all of the issued and outstanding share capital of G.S InnPlay Labs Ltd. (“InnPlay”) for an aggregate purchase price equal to (i) $80 million, subject to customary closing adjustments, and (ii) earnout payments of up to $220 million, the amounts of which will be based on certain revenue growth performance metrics of InnPlay during the two years following the closing of the transaction. On June 18, 2024, the Company and InnPlay signed the first amendment to the Purchase Agreement which reduces the maximum cap on the total earnout from $220 million to $170 million and adjusted certain of the associated underlying performance metrics. The Company recorded $16.2 million of income to general
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and administrative expense during the quarter ended June 30, 2024 to adjust its recorded earnout liability to the current estimated fair value of the total amount to be paid under the earnout, as amended.

Concentration of credit risk and significant customers

Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and derivative contracts. The Company’s investment policy imposes certain maturity limits on the Company’s portfolio and restricts the permitted investments to the purchase of bank deposits and highly rated fixed income securities.

Apple, Facebook and Google are significant distribution, marketing, promotion and payment platforms for the Company's games. A significant portion of the Company’s revenues has been generated from players who accessed the Company's games through these platforms. Therefore, the Company's accounts receivable are derived mainly from sales through these three platforms. The Company performs ongoing credit evaluations of its customers.

The following table summarizes the major accounts receivable of the Company as a percentage of the total accounts receivable as of the dates indicated:
June 30,
2024
December 31,
2023
Apple58%56%
Google26%28%
Facebook4%4%

Accounts receivable are recorded at their transaction amounts and do not bear interest. The Company bases its allowance for credit losses on management's best estimate of the amount of probable credit losses in the Company's existing accounts receivable based on historical collection experience and current and expected future economic and market conditions.

Cash and cash equivalents and Short-term investments

Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less from the date of purchase and are stated at the lower of cost or market value. Cash equivalents include investments in term deposits, commercial papers and money market funds that can be redeemed immediately at the current net asset value.

Investments with maturities of more than three months but less than one year from the date of purchase are included in short-term investments. Such short-term investments include investments in term deposits and commercial papers and are stated at cost which approximates fair market value.

The Company classifies its debt securities as available-for-sale (“AFS”). AFS debt securities are carried at fair value, with unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses on sale of investments are included in Interest and other, net on the statements of comprehensive income and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in Interest and other, net.

Employee related benefits

Appreciation and retention plan

In August 2019, the Company adopted the Playtika Holding Corp. Retention Plan (the “2021-2024 Retention Plan”) in order to retain key employees and reward them for contributing to the success of the Company. Under the 2021-2024 Retention Plan, eligible employees may be granted retention units that let them receive their pro-rata portion of a retention pool of $25 million per year for each of the plan years, and may also be granted appreciation units, which allow the employee to
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receive their pro-rata portion of an appreciation pool calculated as a specified percentage of Adjusted EBITDA for each of the plan years.

The value of each unit of the 2021-2024 Retention Plan has been amortized into compensation expense using the straight-line method, which will result in the recognition of compensation costs in the same years as the underlying EBITDA used in the plan measurement is earned.

The Company recognized compensation expenses in respect of retention bonus and appreciation unit awards under its appreciation and retention plans of $23.3 million and $29.1 million during the three months ended June 30, 2024 and 2023, respectively, and $46.2 million and $58.9 million during the six months ended June 30, 2024 and 2023, respectively.

Derivative instruments
The Company uses interest rate swap contracts to reduce its exposure to fluctuating interest rates associated with the Company’s variable rate debt, and to effectively increase the portion of debt upon which the Company pays a fixed interest rate. The Company’s interest rate swap agreements are designated as cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), involving the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt.

The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively. The Company performed a regression analysis at inception of the hedging relationship and at period end in which it compared the change in the fair value of the swap transaction and the change in fair value of a hypothetical interest rate swap having terms that identically match the terms of the debt's interest rate payments based on historical swap rates. The Company believes that the hedging instruments are expected to be highly effective at offsetting changes in the hedged transactions attributable to the risk being hedged. For each future reporting period, the Company will continue performing retrospective and prospective assessments of hedge effectiveness in a single regression analysis by updating the regression analysis that was prepared at the inception of the hedging relationship.

The Company uses foreign currency derivative contracts to reduce its exposure to fluctuating exchange rates between the United States dollar (as the Company’s functional currency) and certain expense lines denominated in Euros (“EUR”), Israeli Shekels (“ILS”), Polish Zloty (“PLN”) and Romanian Leu (“RON”). The Company’s derivative contracts are designated as cash flow hedges under ASC 815. The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively, and expects these hedges to remain highly effective at offsetting fluctuations in exchange rates through their respective maturity dates. See Note 6, Derivative Instruments, for additional discussion.

The fair value of derivative financial instruments is recognized as an asset or liability at each balance sheet date, with changes in fair value recorded in other comprehensive income on the consolidated statements of comprehensive income until the future underlying transactions occur. The fair value approximates the amount the Company would pay or receive if these contracts were settled at the respective valuation dates. The inputs used to measure the fair value of the Company’s interest rate swap agreements and foreign currency derivative contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820, Fair Value Measurement (“ASC 820”). See Note 7, Fair Value Measurements, for additional discussion.

Investment in unconsolidated entities

The Company holds certain equity investments in various unconsolidated entities that, based upon the structure of the investment, are not within the scope of equity investment accounting that would lead to the consolidation conclusions above. Instead, these investments fall within the scope of ASC 321, Investments - Equity Securities. As permitted within that guidance, the Company has elected to account for these investments at cost less impairment, adjusted for changes in fair value from observable transactions for identical or similar investments of the same issuer as of the respective transaction dates. During the six months ended June 30, 2024, the Company recorded an impairment of $7.0 million related to one of its
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investments in an unconsolidated entity. No change to the carrying amounts were recorded in the six months ended June 30, 2023.

Net income per share attributable to common stockholders

For all periods presented herein, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Performance Stock Units (“PSUs”) are considered potentially dilutive as of the first day of the reporting period in which the underlying performance metric is achieved. In the event of a loss, diluted shares are not considered because of their anti-dilutive effect. The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period.

NOTE 2.    SHORT-TERM INVESTMENTS

Short-term investments at June 30, 2024 are as follows (in millions):

June 30, 2024
Amortized costAllowance for credit losses
Unrealized gains
Unrealized losses
Term deposits$132.8 $ $ $ 
Commercial papers257.4   (0.1)
Total short-term investments$390.2 $ $ $(0.1)

NOTE 3.    ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at June 30, 2024 and December 31, 2023 were as follows (in millions):
June 30,
2024
December 31,
2023
Employees and related expenses$121.8 $162.5 
Accrued expenses83.2 93.9 
Media buy64.8 54.5 
Deferred revenues40.0 46.0 
Dividend payable37.2  
Tax accruals34.2 35.4 
Contingent consideration31.4 46.0 
Total accrued expenses and other current liabilities$412.6 $438.3

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NOTE 4.    DEBT
June 30, 2024December 31, 2023
(in millions, except interest rates)
Maturity
Interest
rate
Book value
Face value
Book value
Term Loan20288.210%$1,816.4 $1,843.0 $1,822.8 
Senior Notes20294.250%594.1 600.0 593.6 
Revolving Credit Facility2026n/a   
Total debt2,410.5 2,443.0 2,416.4 
Less: Current portion of long-term debt(16.5)(23.8)(16.8)
Long-term debt$2,394.0 $2,419.2 $2,399.6 

Book value of debt in the table above is reported net of deferred financing costs and original issue discount of $32.5 million and $36.1 million at June 30, 2024 and December 31, 2023, respectively.

Credit Agreement

The Company has a $1.9 billion senior secured first lien term loan (the “Term Loan”) and a $600 million revolving credit facility (the “Revolving Credit Facility”) (together, the “Credit Agreement”), maturing on March 11, 2028 and March 11, 2026, respectively. The Term Loan requires quarterly principal payments equal to 0.25% of the original aggregate principal amount of the Term Loan with balance due at maturity.

The Revolving Credit Facility includes a maximum first-priority net senior secured leverage ratio financial maintenance covenant of 6.25 to 1.0. At June 30, 2024, the Company’s first-priority net senior secured leverage ratio was 0.96 to 1.0.

The Company was in compliance with its financial and other covenants under the Credit Agreement as of June 30, 2024.

The other significant terms and conditions of the Credit Agreement have not changed from what was disclosed in Note 12, Debt in our Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Offering of 4.250% Senior Notes due 2029

Indenture

On March 11, 2021, the Company issued $600.0 million aggregate principal amount of its 4.250% senior notes due 2029 (the “Notes”) under an indenture, dated March 11, 2021 (the “Indenture”), among the Company, the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee (the “Trustee”).

Maturity and Interest

The Notes mature on March 15, 2029. Interest on the Notes will accrue at a rate of 4.250% per annum. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year.

The significant terms and conditions of the Notes have not changed from what was disclosed in Note 12, Debt in our Annual Report on Form 10-K filed with the SEC on February 26, 2024.

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NOTE 5.    EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN

Overview of Stock Incentive Plan

On May 26, 2020, the Board of Directors of the Company approved the Playtika Holding Corp. 2020 Incentive Award Plan (the “Plan”).

As of June 30, 2024, a total of 47,954,177 shares of the Company’s common stock had been allocated to awards granted under the Plan and 15,447,480 shares remained available for future grants.

Cash Dividend

On April 5, 2024, the Board of Directors of the Company (“the Board”) paid a cash dividend of $0.10 per shares of the Company’s outstanding common stock. Additionally, the Board declared a cash dividend of $0.10 per share of the Company’s outstanding common stock, payable on July 5, 2024 to stockholders of record as of the close of business on June 21, 2024. The dividend amount of $37.2 million is recorded in accrued expenses and other current liabilities at June 30, 2024.

Stock Repurchase Program

On May 9, 2024, the Company announced that its Board of Directors authorized a stock repurchase program for up to $150 million of the Company’s common stock. Under the repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

Stock Options

The following table summarizes the Company’s stock option activity during the six months ended June 30, 2024:

StockWeightedWeighted
OptionsAverageAverageIntrinsic
OutstandingRemainingExerciseValue
(in millions)Term (in years)Price(in millions)
Outstanding at January 1, 2024
1.7 7.6$17.72 
Granted $ 
Exercised 
Cancelled(0.3)$19.22 
Expired $ 
Outstanding at June 30, 2024
1.4 7.2$17.40 $ 
Exercisable at June 30, 2024
0.9 7.0$18.89 $ 

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The Company used the Black-Scholes option pricing model for determining the estimated fair value of stock-based compensation related to stock options. The table below summarizes the assumptions used for the options granted in the six months ended June 30, 2023. There were no options granted in the six months ended June 30, 2024.

Six months ended
June 30,
2023
Risk-free interest rate
3.34% - 3.79%
Expected dividend yield
Expected term in years6.1
Expected volatility
52.13% - 52.79%

RSUs

The following table summarizes the Company’s RSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
SharesGrant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
21.3 $12.24 
Granted
0.5 $7.59 
Vested
(2.0)$16.45 $15.5 
Cancelled
(1.9)$12.37 
Outstanding at June 30, 2024
17.9 $11.60 

PSUs

As of June 30, 2024, the Company estimated achievement of a target less than 100% for the PSUs associated with the 2024 and 2025 tranches, consistent with the Company’s current forecasted performance for 2024 and 2025.

The following table summarizes the Company’s PSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
Shares(1)
Grant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
2.2 $9.72 
Granted
 $ 
Vested
*$9.72 *
Cancelled
(0.7)$9.72 
Outstanding at June 30, 2024
1.5 $9.72 
________
(1)    The number of PSUs outstanding represent the total number of PSUs granted to each recipient eligible to vest if the Company meets its highest specified performance goals for the applicable period.

*    Represents an amount less than 0.1 or $0.1
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Stock-Based Compensation

The following table summarizes stock-based compensation costs as reported by award type (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Stock options$0.9 $1.1 $1.7 $1.4 
RSUs24.2 26.9 50.1 54.0 
PSUs(1.6)(1.9)(4.1)0.5 
Total stock-based compensation costs$23.5 $26.1 $47.7 $55.9 

The following table summarizes stock-based compensation costs, net of amounts capitalized, as reported on the Company’s consolidated statement of comprehensive income (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Research and development expenses$7.8 $9.5 $15.9 $19.0 
Sales and marketing expenses1.6 2.4 3.4 4.8 
General and administrative expenses13.5 13.4 27.3 30.7 
Total stock-based compensation costs, net of amounts capitalized$22.9 $25.3 $46.6 $54.5 

During the three months ended June 30, 2024 and 2023, the Company capitalized $0.6 million and $0.8 million of stock-based compensation cost, respectively. During the six months ended June 30, 2024 and 2023, the Company capitalized $1.1 million and $1.4 million of stock-based compensation cost, respectively.

As of June 30, 2024, the Company’s total unrecognized stock-based compensation expenses related to stock options and RSUs was approximately $3.1 million and $177.8 million, respectively. There was no unrecognized expense for PSUs at June 30, 2024. The expense related to stock options and RSUs are expected to be recognized over a weighted average period of 1.4 years and 2.8 years, respectively.

NOTE 6.     DERIVATIVE INSTRUMENTS

Interest Rate Swap Agreements

In March 2021, the Company entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution as the counterparty to reduce the Company’s counterparty risk. The initial terms of each swap required the Company to pay a fixed interest rate of 0.9275% in exchange for receiving one-month LIBOR. In June 2023 these two interest rate swap agreements were amended so that effective July 31, 2023, the Company will pay a fixed interest rate of 0.85% in exchange for receiving one-month Term SOFR. The amendment did not impact the hedge effectiveness.

The interest rate swap agreements settle monthly commencing in April 2021 through their termination dates on April 30, 2026. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.

In January 2023, the Company entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution, and each swap requires the Company to pay a fixed interest rate of 3.435% in exchange for receiving one-month LIBOR for six months and one-month Term SOFR afterwards. The interest rate swap agreements settle monthly commencing in February 2023 through their termination dates on February 28, 2028. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.

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The aggregate fair value of the Company’s interest rate swap agreements was an asset of $45.5 million as of June 30, 2024 and was recorded in prepaid expenses and other current assets and other non-current assets in the accompanying consolidated balance sheets based upon the timing of the underlying expected cash flows.

Foreign currency hedge agreements

At June 30, 2024, the Company had outstanding derivative contracts to purchase certain foreign currencies, including EUR, ILS, RON, and PLN at future dates. The amount of future salary expenses the Company had hedged was approximately $207.9 million, and all contracts are expected to mature during the upcoming 12 months. The aggregate fair value of the Company’s derivative contracts was a net liability of $2.3 million as of June 30, 2024 and was recorded in prepaid expenses and other current assets and accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

The following table summarizes the volume of derivative instrument activity (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Derivative instruments - foreign currency derivative contracts$65.4 $54.0 $105.4 $92.7 
Derivative instruments - interest rate swaps   500.0 
Derivative instruments - others (non-hedging) (0.3) 1.6 

NOTE 7.    FAIR VALUE MEASUREMENTS

The Company accounts for fair value in accordance with ASC 820. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying value of accounts receivable and payables and the Company's cash and cash equivalents, short-term investments and restricted cash approximates fair value due to the short time to expected payment or receipt of cash.

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The following table summarizes the fair value measurement of the Company’s long-term debt (in millions):
June 30, 2024
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,843.0 $1,843.0 Level 2
Senior Notes600.0 522.0 Level 2
Total debt$2,443.0 $2,365.0 

December 31, 2023
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,852.5 $1,847.9 Level 2
Senior Notes600.0 525.8 Level 2
Total debt$2,452.5 $2,373.7 

The estimated fair value of the Company’s term loan is based upon the prices at which the Company’s debt traded in the days immediately preceding the balance sheet date. As the trading volume of the Company’s debt is low relative to the overall debt balance, the Company does not believe that the associated transactions represent an active market, and therefore this indication of value represents a level 2 fair value input.

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The following table sets forth the assets and liabilities measured at fair value on a recurring basis in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023 (in millions):
Fair Value at
Fair Value HierarchyJune 30, 2024December 31, 2023
Cash equivalents
Money market fundsLevel 1$346.2 $524.4 
Term depositsLevel 166.2 290.3 
Commercial papersLevel 2129.6 104.8 
Short-term investments
Term depositsLevel 1132.8  
Commercial papersLevel 2257.3  
Prepaid expenses and other current assets
Derivative instruments - interest rate swapsLevel 2$27.8 $25.3 
Derivative instruments - foreign currency derivative contractsLevel 20.9 4.3 
Other non-current assets
Derivative instruments - interest rate swapsLevel 2$17.7 $15.2 
Accrued expenses and other current liabilities
Derivative instruments - foreign currency derivative contractsLevel 2$3.2 $0.9 
Other long-term liabilities, including employee related benefits
Derivative instruments - interest rate swapsLevel 2$ $4.4 

The change in fair value of contingent consideration payable was valued using significant unobservable inputs (Level 3), was included in the general and administrative expenses in the Company’s consolidated statements of comprehensive income and consisted of the following (in millions):

Balance as of January 1, 2024$66.8 
Fair value adjustments based upon post-acquisition performance(13.4)
Balance as of June 30, 2024(1)
$53.4 
__________
(1)    Amount comprised of $51.0 million and $2.4 million for InnPlay and Youda Games acquisitions, respectively.

The carrying values of the Company’s cash equivalents and short-term investments approximate fair value because of the short duration of these financial instruments.

The Company estimates the fair value of interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of the Company’s interest rate swap contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820. The inputs used to measure the fair value of the Company’s foreign currency contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820.

The Company estimated the fair value of its contingent consideration liabilities using a Monte Carlo simulation to model components of cash flow analyses. These fair value measurements are based on significant inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from
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assumptions made within the Monte Carlo simulation cash flow analysis will result in adjustments to this liability in future periods.

NOTE 8.    COMMITMENTS AND CONTINGENCIES

In November 2013, the Company’s subsidiary, Playtika, Ltd., sent an initial demand letter to Enigmatus s.r.o., a game developer in the Czech Republic, which owns various U.S. trademark registrations that resemble the Company’s Sloto-formative trademark names, demanding that it cease use of the trademark Slotopoly. In response, Enigmatus s.r.o. asserted that it was the owner of the Sloto-formative trademarks and denied that its game title infringed upon the Company’s trademarks. Enigmatus s.r.o. applied to register one of the Company’s trademarks in the United Kingdom and European Union, and the Company successfully opposed its applications. In December 2016, Enigmatus s.r.o., filed a trademark infringement lawsuit, Enigmatus, s.r.o. v. Playtika LTD and Caesars Interactive Entertainment, Inc., against Playtika, Ltd. and Caesars Interactive Entertainment LLC in the Federal Court of Canada asserting that the Company’s use of the Slotomania trademarks violates its proprietary and trademark rights. The plaintiff sought injunctive relief and monetary damages. On May 17, 2024, the Company’s motion for summary trial was granted. However, the plaintiffs subsequently filed a notice of appeal. The Company has defended this case vigorously and will continue to do so. As the appeals process is in the preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On November 23, 2021, the Company, its directors and certain of its officers were named in a putative class action lawsuit filed in the United States District Court for the Eastern District of New York (Bar-Asher v. Playtika Holding Corp. et al.). The complaint is allegedly brought on behalf of a class of purchasers of the Company’s securities between January 15, 2021 and November 2, 2021, and alleges violations of federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class period. On March 10, 2022, the court appointed LBMotion Ltd as lead plaintiff, and the plaintiff filed an amended complaint on May 6, 2022. The amended complaint alleges violations of Section 11 and 15 of the Securities Act of 1933 and seeks, among other things, damages and attorneys’ fees and costs on behalf of the putative class. The amended complaint also added the companies that served as underwriters for the Company’s IPO as defendants in the lawsuit. On September 15, 2022, in accordance with local rules of the Court, the Company and other defendants in the case filed a letter notifying the Court of defendants’ service upon plaintiffs of, among other things, a notice of motion to dismiss plaintiffs’ amended complaint and a memorandum of law in support of the defendants’ motion to dismiss plaintiffs’ amended complaint. On November 30, 2022, the Company filed with the Court a motion to dismiss. The Company’s motion to dismiss was granted with prejudice on March 18, 2024. However, on April 15, the plaintiffs filed a notice of appeal. As the appeals process is in the preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company has defended this case vigorously and will continue to do so.

On November 4, 2022, the Company and certain of its directors were named in a derivative action lawsuit filed in the United States District Court for the Eastern District of New York (Bushansky v. Antokol., et al.). The complaint was brought on behalf of the Company by a putative stockholder alleging that the named directors were negligent in their oversight of the preparation of the Company’s Proxy Statement in alleged violation of federal securities laws and that those directors breached their fiduciary duties upon related allegations. The complaint also asserts claims for contribution and indemnification, and aiding and abetting. The complaint seeks, among other things, damages, disgorgement and restitution by the director defendants, and attorneys’ fees and costs. Based upon an agreement of plaintiff, the Company, and the other defendants, on February 13, 2023, the Court stayed this action until the resolution of the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. When the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. was granted as discussed above, this action was administratively closed. The Company does not expect this action to move forward until after the appeal of the class action case of Bar-Asher v. Playtika Holding Corp. has been decided. As this stage, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to vigorously defend this case.

On May 17, 2022, Guy David Ben Yosef filed a Motion for Approval of a class action lawsuit in district court in Tel Aviv-Jaffa Israel against Playtika Group Israel Ltd. (“PGI”), on behalf of all of PGI’s customers who made game token purchases in Israel as part of games marketed by PGI during the seven years preceding the filing of the motion and for all subsequent customers of such games who purchase tokens until the resolution of the claim. The Motion alleges that certain of the
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Company’s slot, poker and solitaire-themed games, including Slotomania, Caesars Slots, Solitaire Grand Harvest, House of Fun and Poker Heat, constitute illegal gambling and are prohibited under Israeli law and are misleading under Israeli consumer protection laws and alleges unjust enrichment. The Motion asserts damages of NIS 50 million. On January 12, 2023, PGI filed its response to the Motion for Approval. On March 5, 2023, the applicant submitted his reply to PGI’s response. A pre-trial hearing was held on May 4, 2023. The parties agreed to appoint a mediator to try and resolve the dispute. The first mediation meeting was held on August 16, 2023 and the second mediation meeting was held on January 7, 2024. The parties have agreed upon a settlement which is currently pending review by certain third parties and the expected range of loss is not material to the Company’s financial statements as a whole. If a mediated resolution is not reached the Company will continue defending this case vigorously.

On April 10, 2023, Playtika Holding UK II Limited, the Company’s controlling shareholder, and certain officers of the Company were sued (Kormos v Playtika Holding UK II Limited, et al.) in the Delaware Chancery Court. The lawsuit alleges generally that the defendants breached fiduciary duties owed to the Company and its stockholders with respect to the controlling shareholder’s indication of an interest in selling some or all of its shares, and the resulting strategic review process and self-tender offer. On August 18, 2023, defendants filed with the Court motions to dismiss the claims. A hearing on the motions to dismiss was held on November 21, 2023. On January 18, 2024, the court denied Playtika Holding UK II Limited’s motion to dismiss in an oral ruling. The court issued a written opinion on May 3, 2024 granting the motion to dismiss the claims against the Company’s officers. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On June 7, 2024, the Company received a demand letter from counsel for Scott G. Kormos, one of the plaintiffs in the litigation matter described in the immediately preceding paragraph, pursuant to Section 220 of the Delaware General Corporation Law (“DGCL”), seeking disclosure of certain of the Company’s books and records. The Company has responded to the demand, stating its belief that the demand letter fails to fully comply with the requirements of Section 220 of the DGCL. However, in the interest of resolution and while preserving all rights, the Company has engaged in negotiations with Mr. Kormos’ counsel regarding the production of materials in relation to the demand.

On November 13, 2023, plaintiff Gina v. Burt filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Coffee County, Tennessee, alleging that the Company’s social casino-themed games are unlawful gambling under Tennessee law. The lawsuit seeks to recover all amounts paid by Tennessee residents to the Company in connection with its games during the period beginning one year before the filing of the lawsuit until the case is resolved but excluding any residents who spent $75,000 or more during such time period. After the Company removed the case to the U.S. District Court for the Eastern District of Tennessee, plaintiff filed a motion to remand the case back to the Coffee County Circuit Court which the Company opposed. The Company also filed a motion to dismiss and a motion to compel arbitration. These motions have been briefed and are currently pending. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On March 8, 2023, plaintiff Gayla Hamilton Mills filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Franklin County, Alabama, alleging that the Company’s casino-themed social games are unlawful gambling under Alabama law. The lawsuit seeks to recover all amounts paid by Alabama residents to the Company in connection with its games during the period beginning one year before the filing of the lawsuit until the case is resolved. After the Company removed the case to the U.S. District Court for the Northern District of Alabama, plaintiff dismissed the complaint and filed a very similar new complaint in the Circuit Court of Franklin County, Alabama on August 25, 2023. The new complaint asserted the same cause of action and bases for relief, but limited the requested recovery to the amounts paid to the Company in connection with its games only by those Alabama residents who spent less than $75,000 during the one year before the filing of the lawsuit until the case is resolved. The Company timely removed the new complaint to the same U.S. district court on September 28, 2023. On October 20, 2023, the plaintiff filed a motion to remand the case back to the Franklin County Circuit Court which the Company opposed. A hearing on the motion to remand was held on March 20, 2024 and the parties are awaiting a ruling. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

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On February 27, 2023, the company received a deficit notice from the Ben Gurion Airport Customs House concerning the purchase of a private aircraft. The deficit notice claims that the company's acquisition of the aircraft is an import into Israel, and, as a result, it was obliged to pay purchase tax and VAT for the acquisition. The company disputes that any tax or VAT is owed. On July 26, 2023, the Customs House's definitive response was received, with the deficit notice still intact. The current claimed amount of the deficit notice is approximately $3.6 million. The Company paid the deficit notice under protest and filed a claim with the district court on December 12, 2023. The Customs House submitted its statement of defense on April 17, 2024 and the Company submitted its response to the statement of defense on June 16. A pre-trial meeting has been scheduled with the court for November 14, 2024. The Company intends to pursue this case vigorously.

On June 1, 2024, the Company received pre-arbitration notices from a law firm purporting to represent 5,264 claimants who have played the Company’s games and intend to file arbitration demands alleging that the Company’s games are unlawful or that they otherwise have suffered harm for which recovery is available. On July 26, 2024, the law firm filed arbitration demands on behalf of 4,549 claimants. As of the date hereof, the Company lacks adequate information to assess the nature or validity of the claims. As such, the Company cannot estimate what impact, if any, these arbitration demands may have on its results of operations, financial condition or cash flows. The Company intends to defend these claims vigorously.

NOTE 9.    REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table provides information about disaggregated revenue by geographic location of the Company’s players and type of platform (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Geographic location
USA$425.0 $452.9 $865.2 $914.2 
EMEA115.8 102.1 237.4 207.1 
APAC42.5 44.8 86.7 90.9 
Other43.7 43.0 88.9 86.8 
Total$627.0 $642.8 $1,278.2 $1,299.0 

Revenues through third-party platforms and through the Company’s own direct-to-consumer platforms were as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Third-party platforms$453.3 $477.5 $933.0 $982.2 
Direct-to-consumer platforms173.7 165.3 345.2 316.8 
Total revenues$627.0 $642.8 $1,278.2 $1,299.0 
Contract balances

Payments from players for virtual items are collected by platform providers or payment processors and remitted to the Company (net of the platform or clearing fees) generally within 30 days after the player transaction. The Company’s right to receive the payments collected by the platform providers or payment processors is recorded as an accounts receivable as the right to receive payment is unconditional. Deferred revenues, which represent a contract liability, represent mostly unrecognized fees billed for virtual items which have not yet been consumed at the balance sheet date. Platform fees paid to platform providers or payment processors and associated with deferred revenues represent a contract asset.
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Balances of the Company’s contract assets and liabilities are as follows (in millions):
June 30,
2024
December 31,
2023
Accounts receivable$160.0 $171.5 
Contract assets (1)
10.9 12.5 
Contract liabilities (2)
40.0 46.0 
_______
(1)    Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)    Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets.

During the three and six months ended June 30, 2024, the Company recognized $10.3 million and $33.7 million, respectively, of its contract liabilities that were outstanding as of December 31, 2023.

Unsatisfied performance obligations

Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.

NOTE 10.    SEGMENT INFORMATION

The Company operates its business as one operating segment and one reportable segment.

The Company’s long-lived assets, net, by country of domicile are as follows (in millions):
June 30,
2024
December 31,
2023
Israel$86.4 $94.0 
USA64.0 64.8 
Ukraine18.6 21.8 
Other37.2 39.6 
Total long-lived assets, net$206.2 $220.2 

NOTE 11.    INTEREST AND OTHER, NET

Interest and other, net are as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest expense$38.9 $35.8 $77.9 $73.8 
Interest income(13.7)(10.3)(26.7)(18.1)
Foreign currency translation differences, net(4.8)(2.4)(7.6)(4.2)
Other   0.2 
Total interest and other, net$20.4 $23.1 $43.6 $51.7 

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NOTE 12.    INCOME TAXES

Three months ended
June 30,
Six months ended
June 30,
(in millions, except tax rate)2024202320242023
Income before income taxes$120.3 $116.1 $195.2 $239.9 
Provision for income taxes$33.7 $40.4 $55.6 $80.1 
Effective tax rate28.0 %34.8 %28.5 %33.4 %

The effective tax rates were determined using a worldwide estimated annual effective tax rate and took discrete items into consideration. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2024 was primarily due to the inclusion of Global Intangible Low-Taxed Income and non-deductible stock-based compensation expense, partially offset by a non-recurring favorable impact of reversal of accruals related to undistributed earnings. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2023 was primarily due to tax provisions that do not meet the more likely than not standard and the inclusion of Global Intangible Low-Taxed Income.

NOTE 13.     ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables show a summary of changes in accumulated other comprehensive income (loss), net of tax, by component for the three and six months ended June 30, 2024 and 2023 (in millions):

Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2024$(10.0)$27.8 $2.8 $20.6 
Other comprehensive income (loss) before reclassifications(4.0)14.5 (2.5)8.0 
Amounts reclassified from accumulated other comprehensive income (loss) (6.2)(0.1)(6.3)
Balance as of March 31, 2024(14.0)36.1 0.2 22.3 
Other comprehensive income (loss) before reclassifications(1.5)5.1 (3.5)0.1 
Amounts reclassified from accumulated other comprehensive income (6.3)1.4 (4.9)
Balance as of June 30, 2024$(15.5)$34.9 $(1.9)$17.5 
                                                                                                                                                    
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Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2023$(15.6)$37.7 $(4.5)$17.6 
Other comprehensive income (loss) before reclassifications3.1 (4.0)(2.0)(2.9)
Amounts reclassified from accumulated other comprehensive income (loss) (4.2)2.4 (1.8)
Balance as of March 31, 2023(12.5)29.5 (4.1)12.9 
Other comprehensive income (loss) before reclassifications(0.2)20.5 (2.4)17.9 
Amounts reclassified from accumulated other comprehensive income (5.5)2.2 (3.3)
Balance as of June 30, 2023$(12.7)$44.5 $(4.3)$27.5 

The amounts in the summary of changes in accumulated other comprehensive income (loss) tables, above, are net of tax expense/(benefits) as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest rate swaps$(0.3)$4.5 $2.2 $2.0 
Foreign currency derivative contracts(0.4)0.1 (0.9) 

Amounts reclassified from accumulated other comprehensive income for interest rate swaps and foreign currency derivative contracts were reclassified to interest expense and operating expenses, respectively, in the Company’s consolidated statements of comprehensive income during the three and six months ended June 30, 2024 and 2023.

NOTE 14.     NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in millions, except per share data):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Numerator:
Net income$86.6 $75.7 $139.6 $159.8 
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders, basic371.4 365.9 370.9 365.3 
Stock-based compensation awards0.4 0.5 0.3 0.5 
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted371.8 366.4 371.3 365.8 
Net income per share, basic$0.23 $0.21 $0.38 $0.44 
Net income per share, diluted$0.23 $0.21 $0.38 $0.44 

The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period. The following outstanding employee equity
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awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Stock options1.5 2.1 1.6 2.6 
RSUs15.0 10.9 18.8 12.2 
Total16.5 13.0 20.4 14.8 
                                                                                                                        
In addition, 1.5 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2024 and 2.2 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2023, because the minimum performance measures were not yet met.

NOTE 15.    SUBSEQUENT EVENTS

The Company performed a review for subsequent events through the date of these financial statements. No material items were noted for disclosure.
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Item 2.        MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Overview

We are one of the world’s leading developers of mobile games creating fun, innovative experiences that entertain and engage our users. We have built best-in-class live game operations services and proprietary technology tools to support our portfolio of games which enable us to drive strong user engagement and monetization. Our games are free-to-play, and we are experts in providing novel, curated in-game content and offers to our users, at optimal points in their game journeys. Our players love our games because they are fun, creative, engaging, and kept fresh through a release of new features that are customized for different player segments. As a result, we have retained paying users over long periods of time.

Recent Events

On October 7, 2023, the State of Israel was attacked by Hamas, and the State of Israel subsequently declared war on Hamas. Since that time, Israel has been engaged in armed conflict with combatants located in Gaza, the West Bank, Syria, Iran, Lebanon and Yemen. While these war and conflicts have not had a direct material financial impact on the Company as of the date of this filing, the Company’s headquarters are located in Israel, and the Company employs approximately 1,050 professionals in Israel, including the majority of the Company’s senior leadership team. The Company is actively monitoring the developments in this geographic region.

Components of our Results of Operations

Revenues

We primarily derive revenue from the sale of virtual items associated with online games.

We distribute our games to the end customer through various web and mobile platforms, such as Apple, Facebook, Google and other web and mobile platforms plus our own direct-to-consumer platforms. Through these platforms, users can download our free-to-play games and can purchase virtual items to enhance their game-playing experience. Players can purchase virtual items through various widely accepted payment methods offered in the games. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations and cannot be redeemed for cash nor exchanged for anything other than virtual items within our games.

Our games are played on various third-party platforms for which the platform providers collect proceeds from our customers and pay us an amount after deducting platform fees. For purchases made through both the third-party and Direct-to-Consumer platforms, we are primarily responsible for fulfilling the virtual items, have the control over the content and functionality of games and have the discretion to establish the virtual items’ prices. Therefore, we are the principal and, accordingly, revenues are recorded on a gross basis. Payment processing fees paid to platform providers are recorded within cost of revenue.
Cost of revenue

Cost of revenue includes payment processing fees, customer support, hosting fees and depreciation and amortization expenses associated with assets directly involved in the generation of revenues, including servers and internal use software. Platform providers (such as Apple, Facebook and Google) charge a transactional payment processing fee to accept payments from our players for the purchase of in-app virtual goods. Payment processing fees and other related expenses for in-app purchases made through our Direct-to-Consumer platforms are typically 3-4%, compared to a 30% platform fee for third party platforms. We generally expect cost of revenue to fluctuate proportionately with revenues.

Research and development

Research and development consists of salaries, bonuses, benefits, other compensation, including stock-based compensation and allocated overhead, related to engineering, research, and development. In addition, research and development expenses include depreciation and amortization expenses associated with assets associated with our research and development efforts.
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We expect that research and development expenses specifically associated with new game development will fluctuate over time.

Sales and marketing

Sales and marketing consists of costs related to advertising and user acquisition, including costs related to salaries, bonuses, benefits, and other compensation, including stock-based compensation and allocated overhead. In addition, sales and marketing expenses include depreciation and amortization expenses associated with assets related to our sales and marketing efforts. We plan to continue to invest in sales and marketing to retain and acquire users. However, sales and marketing expenses may fluctuate as a percentage of revenues depending on the timing and efficiency of our marketing efforts.

General and administrative

General and administrative expenses consist of salaries, bonuses, benefits, and other compensation, including stock-based compensation, for all our corporate support functional areas, including our senior leadership. In addition, general and administrative expenses include outsourced professional services such as consulting, legal and accounting services, taxes and dues, insurance premiums, and costs associated with maintaining our property and infrastructure. General and administrative expenses also include depreciation and amortization expenses associated with assets not directly attributable to any of the expense categories above. We also record adjustments to contingent consideration payable recorded after the acquisition date, and legal settlement expenses, as components of general and administrative expense.

Impairment charge

Impairment charge reflects an impairment related to one of our investments in an unconsolidated entity. We hold certain equity investments in various unconsolidated entities that fall within the scope of ASC 321, Investments - Equity Securities. As permitted within that guidance, we have elected to account for these investments at cost less impairment, adjusted for changes in fair value from observable transactions for identical or similar investments of the same issuer as of the respective transaction dates.

Interest and other, net

Our interest expense includes interest incurred under our December 2019 Credit Agreement and amortization of deferred financing costs. We expect to continue to incur interest expense under our Credit Agreement, although such interest expense will fluctuate based upon the underlying variable interest rates. We entered into multiple interest rate swap agreements in March 2021 and in January 2023, accumulating to a total notional amount of $1.0 billion, reducing our overall exposure to variable interest rates.

Interest income consists of interest earned on cash, cash equivalents and short-term investments.

Foreign currency translation adjustments, net, include gains and losses resulting from remeasurement of certain non-USD denominated balance sheet items.

Provision for income taxes

The provision for income taxes consists of current income taxes in the various jurisdictions where we are subject to taxation, primarily the United States, the United Kingdom, Israel, Germany, and Austria, as well as deferred income taxes reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities in each of these jurisdictions for financial reporting purposes and the amounts used for income tax purposes. Under current U.S. tax law, the federal statutory tax rate applicable to corporations is 21%. Our effective tax rate can fluctuate based on various factors, including our financial results and the geographic mix to which they relate, the applicability of special tax regimes, changes in our business or operations, examination-related developments and uncertain tax positions, and changes in tax law.
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Net Income

We calculate net income as revenue minus cost of revenues, research and development, sales and marketing and general and administrative expenses, interest and taxes.

Consolidated Operating Results of Playtika Holding Corp

We measure the performance of our business by using several key financial metrics, including revenue and operating income, and operating metrics, including Daily Active Users, Average Revenue per Daily Active User, Paying Users, and Average Revenue per Paying User. These operating metrics help our management to understand and measure the engagement levels of our players, the size of our audience and our reach. See “Basis of Presentation” and “Summary Consolidated Financial and Other Data” for additional information of these measures.

Daily Active Users

We define Daily Active Users, or DAUs, as the number of individuals who played one of our games during a particular day on a particular platform. Under this metric, an individual who plays two different games on the same day is counted as two DAUs. Similarly, an individual who plays the same game on two different platforms (e.g., web and mobile) or on two different social networks on the same day would be counted as two DAUs. Average DAUs for a particular period is the average of the DAUs for each day during that period. We believe that Daily Active Users is a useful metric to measure the scale and usage of our game platform.

Daily Paying Users

We define Daily Paying Users, or DPUs, as the number of individuals who purchased, with real world currency, virtual currency or items in any of our games on a particular day. Under this metric, an individual who makes a purchase of virtual currency or items in two different games on the same day is counted as two DPUs. Similarly, an individual who makes a purchase of virtual currency or items in any of our games on two different platforms (e.g., web and mobile) or on two different social networks on the same day could be counted as two DPUs. Average DPUs for a particular period is the average of the DPUs for each day during that period. We believe that Daily Paying Users is a useful metric to measure game monetization.

Daily Payer Conversion

We define Daily Payer Conversion as the total number of DPUs divided by the number of DAUs on a particular day. Average Daily Payer Conversion for a particular period is the average of the Daily Payer Conversion rates for each day during that period. We believe that Daily Payer Conversion is a useful metric to describe the monetization of our users.

Average Revenue per Daily Active User

We define Average Revenue per Daily Active User, or ARPDAU, as (i) the total revenue in a given period, (ii) divided by the number of days in that period, (iii) divided by the average DAUs during the period. We believe that ARPDAU is a useful metric to describe monetization.

Monthly Active Users

We define Monthly Active Users, or MAUs, as the number of individuals who played one of our games during a calendar month on a particular platform. Under this metric, an individual who plays two different games in the same calendar month is counted as two MAUs. Similarly, an individual who plays the same game on two different platforms (e.g., web and mobile) or on two different social networks during the same month would be counted as two MAUs. Average MAUs for a particular period is the average of the MAUs for each month during that period. We believe that MAUs is a useful metric to measure the scale and reach of our platform, but we base our business decisions primarily on daily performance metrics, which we believe more accurately reflect user engagement with our games.
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Results of Operations

The table below shows the results of our key financial and operating metrics for the periods indicated. Unless otherwise indicated, financial metrics are presented in millions of U.S. Dollars, user statistics are presented in millions of users, and ARPDAU is presented in U.S. Dollars.
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
(in millions, except percentages, Average DPUs and ARPDAU)(Unaudited)
Revenues$627.0 $642.8 $1,278.2 $1,299.0 
Total cost and expenses$486.3 $503.6 $1,039.4 $1,007.4 
Operating income$140.7 $139.2 $238.8 $291.6 
Net income$86.6 $75.7 $139.6 $159.8 
Credit Adjusted EBITDA$191.0 $215.0 $376.6 $437.7 
Non-financial performance metrics
Average DAUs8.1 8.6 8.4 8.8 
Average DPUs (in thousands)298 307 303 317 
Average Daily Payer Conversion3.7 %3.6 %3.6 %3.6 %
ARPDAU$0.85 $0.83 $0.83 $0.81 
Average MAUs27.7 28.3 30.3 29.2 

Comparison of the three and six months ended June 30, 2024 versus the three six months ended June 30, 2023

Three months ended
June 30,
Six months ended
June 30,
2024202320242023
(in millions)(Unaudited)
Revenues$627.0 $642.8 $1,278.2 $1,299.0 
Cost of revenue$168.2 $178.3 $345.2 $364.0 
Research and development100.6 100.3 207.5 202.7 
Sales and marketing169.4 141.2 359.8 284.9 
General and administrative48.1 74.1 119.9 146.1 
Impairment of intangible assets— 9.7 7.0 9.7 
Total costs and expenses$486.3 $503.6 $1,039.4 $1,007.4 

Revenues

Revenues for the three and six months ended June 30, 2024 decreased by $15.8 million and $20.8 million, respectively when compared with the comparable period of 2023. Incremental revenues from the acquired studios were more than offset by the decrease in revenues due to reduced monetization off of a lower base of paying users.

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Cost of revenue

Cost of revenue for the three and six months ended June 30, 2024 decreased by $10.1 million and $18.8 million, respectively, when compared with the comparable periods of 2023. The decreases in cost of revenue includes an approximate $10.4 million and $18.2 million decrease in platform fees associated with reduced revenues and a greater percentage of revenue generated from our Direct-To-Consumer platforms for the three and six months ended June 30, 2024, respectively, as well as a $1.6 million and $3.8 million decrease in depreciation and amortization expenses, respectively.

Research and development expenses

Research and development expenses for the three and six months ended June 30, 2024 increased by $0.3 million and $4.8 million, respectively, when compared with the comparable periods of 2023. The increases in research and development expenses were primarily due to a shift in our workforce composition towards higher-cost locations, combined with merit-based compensation increases and an increased spend in outsourcing. These factors were offset by decreases in expenses related to a reduction in overall headcount.

Sales and marketing expenses

Sales and marketing expenses for the three and six months ended June 30, 2024 increased by $28.2 million and $74.9 million, respectively, when compared with the comparable periods of 2023. The increases in sales and marketing expenses were due largely to increased media buy expenses driven by the acquisitions of InnPlay and Youda that were not present in the first half of 2023, accompanied by moderately higher media buy spending across the Company.

General and administrative expenses

General and administrative expenses for the three and six months ended June 30, 2024, decreased by $26.0 million and $26.2 million, respectively, when compared with the comparable period of 2023.

The decrease in general and administrative expenses for the three and six months ended June 30, 2024 includes an adjustment to reduce expense by $16.2 million related to the change in fair value of the contingent consideration associated with the 2023 acquisition of InnPlay. Without the recent amendment to the Stock Purchase Agreement for InnPlay, the likelihood of InnPlay reaching the thresholds for payment of the contingent consideration would likely have been significantly lower.

In addition, the decreases in general and administrative expenses for the three and six months ended June 30, 2024 includes an approximate $8.0 million and $19.2 million impact, respectively, of recent headcount reductions that reduced employee compensation costs, including decreased stock-based compensation expense. These amounts were largely offset by an increase of $1.8 million and $9.5 million, respectively, to severance expense.

Impairment charge

During the six months ended June 30, 2024, we recorded an impairment charge of $7.0 million related to one of our investments in an unconsolidated affiliate. During the three and six months ended June 30, 2023, we recorded a $9.7 million write-off of JustPlay.LOL Ltd’s game title.

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Other Factors Affecting Net Income
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
(in millions)(Unaudited)
Interest expense$38.9 $35.8 $77.9 $73.8 
Interest income(13.7)(10.3)(26.7)(18.1)
Foreign currency exchange, net(4.8)(2.4)(7.6)(4.2)
Other— — — 0.2 
Provision for income taxes33.7 40.4 55.6 80.1 
Interest

Interest expense for the three and six months ended June 30, 2024 increased by $3.1 million and $4.1 million, respectively, when compared with the same period of 2023 as a result of higher average interest rates on our variable rate debt.

Interest income for the three and six months ended June 30, 2024 increased by $3.4 million and $8.6 million, respectively, when compared with the same period of 2023 as a result of higher balances held in interest bearing cash, cash equivalents and short-term investments, and higher average interest rates earned on those instruments.

Provision for income taxes

The effective income tax rate for the three months ended June 30, 2024 was 28.0% compared to 34.8% for the three months ended June 30, 2023. The effective income tax rate for the six months ended June 30, 2024 was 28.5% compared to 33.4% for the six months ended June 30, 2023. The effective tax rates were determined using a worldwide estimated annual effective tax rate and took discrete items into consideration. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2024 was primarily due to the inclusion of Global Intangible Low-Taxed Income and non-deductible stock-based compensation expense, partially offset by a non-recurring favorable impact of reversal of accruals related to undistributed earnings. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2023 was primarily due to tax provisions that do not meet the more likely than not standard and the inclusion of Global Intangible Low-Taxed Income.

Net income

Upon aggregating all of the components of our results of operations above, net income for the three and six months ended June 30, 2024, increased $10.9 million and $20.2 million, respectively, when compared with the same periods of 2023.


Reconciliation of Credit Adjusted EBITDA to Net Income

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
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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.

Three months ended
June 30,
Six months ended
June 30,
(in millions)2024202320242023
Net income$86.6 $75.7 $139.6 $159.8 
Provision for income taxes33.7 40.4 55.6 80.1 
Interest expense and other, net20.4 23.1 43.6 51.7 
Depreciation and amortization38.7 38.5 77.9 77.6 
EBITDA179.4 177.7 316.7 369.2 
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 margin13.8 %11.8 %10.9 %12.3 %
Credit Adjusted EBITDA margin30.5 %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.

Liquidity and Capital Resources

Capital spending

We incur capital expenditures in the normal course of business and perform ongoing enhancements and updates to our social and mobile games to maintain our quality standards. Cash used for capital expenditures in the normal course of business is typically made available from cash flows generated by operating activities. We may also pursue acquisition opportunities for
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additional businesses or social or mobile games that meet our strategic and return on investment criteria. Capital needs are evaluated on an individual opportunity basis and may require significant capital commitments.

Liquidity

Our primary sources of liquidity are the cash flows generated from our operations, currently available unrestricted cash and cash equivalents, short-term investments, and borrowings under our Credit Facility and Revolver. Our cash and cash equivalents and short-term investments totaled $1,100.4 million and $1,029.7 million at June 30, 2024 and December 31, 2023, respectively. As of both June 30, 2024 and December 31, 2023, we had $600 million in additional borrowing capacity pursuant to our Revolving Credit Facility. Payments of short-term debt obligations and other commitments are expected to be made from cash on the balance sheet and operating cash flows. Long-term obligations are expected to be paid through operating cash flows, or, if necessary, borrowings under our Revolving Credit Facility or, if necessary, additional term loans or issuances of equity.

Our ability to fund our operations, pay our debt obligations and fund planned capital expenditures depends, in part, upon economic and other factors that are beyond our control, and disruptions in capital markets could impact our ability to secure additional funds through financing activities. We believe that our cash and cash equivalents balance, short-term investments and borrowing capacity under our Revolving Credit Facility and our cash flows from operations will be sufficient to meet our normal operating requirements during the next 12 months and the foreseeable future and to fund capital expenditures.

Cash flows

The following tables present a summary of our cash flows for the periods indicated (in millions):
Six months ended June 30,
20242023
Net cash flows provided by operating activities$180.1 $227.5 
Net cash flows used in investing activities(449.1)(33.0)
Net cash flows used in financing activities(48.6)(11.4)
Effect of foreign exchange rate changes on cash and cash equivalents(2.3)3.6 
Net change in cash, cash equivalents and restricted cash$(319.9)$186.7 

Operating activities

Net cash flows provided by operating activities for the six months ended June 30, 2024 was $180.1 million compared with $227.5 million for the same period of 2023. Net cash flows provided by operating activities for each period primarily consisted of net income generated during the period, exclusive of non-cash expenses such as depreciation, amortization, stock-based compensation and changes in the fair value of contingent consideration payable, with changes in working capital impacted by the payment of annual and incentive bonuses and payment of long-term cash compensation during the first quarter and other normal working-capital timing differences.

Investing activities

Net cash flow used in investing activities for the six months ended June 30, 2024 was $449.1 million when compared with $33.0 million for the same period of 2023. Cash flows used in investing activities generally includes outflows related to the purchase and capitalization of assets and, in 2024, includes $390.1 million of cash outflow for cash deposited into short-term investments.

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Financing activities

Net cash flows used in financing activities for the six months ended June 30, 2024 was $48.6 million, compared with $11.4 million for the same period of 2023. Financing activity cash flows for the six months ended June 30, 2024 primarily relates to a cash dividend paid, and in both 2024 and 2023 includes repayments on our bank borrowings.                                                                                                                 

Capital resources

On December 10, 2019, we entered into $2,750 million of senior secured credit facilities (the “Credit Facilities”), consisting of a $250 million revolving credit facility (the “Revolving Credit Facility”), and a $2,500 million first lien term loan (the “Old Term Loan”). The Credit Facilities were provided pursuant to the Credit Agreement, dated as of December 10, 2019, by and among Playtika, the lenders party thereto, and Credit Suisse, AG, Cayman Islands Branch, as administrative agent (in such capacity, the "Administrative Agent") and collateral agent (in such capacity, the "Collateral Agent"). Proceeds borrowed under the Credit Facilities on the closing date were used to pay off the outstanding balance on our prior debt facility. On June 15, 2020, we increased the capacity of the Revolving Credit Facility to $350 million. On January 15, 2021, we increased the borrowing capacity of the Revolving Credit Facility from $350 million to $550 million.
On March 11, 2021, the Credit Agreement was amended pursuant to an Incremental Assumption Agreement No. 3 and Second Amendment to Credit Agreement (the “Second Amendment”).

The Second Amendment, among other things, effected a refinancing of Old Term Loan with a new $1.9 billion senior secured first lien term loan borrowed under the Credit Agreement (the “New Term Loan”), increased the Revolving Credit Facility to $600 million and extended the maturity of the Revolving Credit Facility to March 11, 2026. The New Term Loan matures on March 11, 2028 and requires scheduled quarterly principal payments in amounts equal to 0.25% of the original aggregate principal amount of the New Term Loan, with the balance due at maturity.

On June 19, 2023, the Company amended the Credit Agreement pursuant to a Third Amendment to Credit Agreement (the “Third Amendment”). The Third Amendment amended the Credit Agreement to bear interest or incur fees and other amounts denominated in Dollars to be based on the Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus an applicable spread adjustment, rather than the previously permitted Adjusted Eurocurrency Rate, starting in the third quarter of 2023. The amendment did not have an impact on the Company’s consolidated financial statements or the effectiveness of the Company’s interest rate swap agreements.

Also on March 11, 2021, we issued $600.0 million aggregate principal amount of our 4.250% senior notes due 2029 (the “Notes”). The Notes mature on March 15, 2029. Interest on the Notes will accrue at a rate of 4.250% per annum. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year, commencing on September 15, 2021.

Significant terms of the Credit Facilities, the New Term Loan and the Notes, including balances outstanding, interest and fees, mandatory and voluntary prepayment requirements, collateral and guarantors and restrictive covenants are detailed in Note 4, Debt, to the accompanying consolidated financial statements and in Note 12, Debt, in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2024.

Item 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate risk, investment risk, and foreign currency risk as follows:

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Interest rate risk

Our exposures to market risk for changes in interest rates relate primarily to our Term Loan and our Revolving Credit Facility. The Term Loan and our Revolving Credit Facility are floating rate facilities. Therefore, fluctuations in interest rates will impact the amount of interest expense we incur and have to pay.

In March 2021, we entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution as the counterparty to reduce our counterparty risk. Each swap requires us to pay a fixed interest rate of 0.9275% in exchange for receiving one-month LIBOR. The interest rate swap agreements settle monthly commencing in April 2021 through their termination dates on April 30, 2026. In June 2023 these two interest rate swap agreements were amended, so that effective July 31, 2023 the Company will pay a fixed interest rate of 0.85% in exchange for receiving one-month Term SOFR.

In January 2023, we entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution, and each swap requires us to pay a fixed interest rate of 3.435% in exchange for receiving one-month LIBOR for six months and one-month Term SOFR afterwards. The interest rate swap agreements settle monthly commencing in February 2023 through their termination dates on February 28, 2028.

The estimated fair value of the our interest rate swap agreements is derived from a discounted cash flow analysis.

We had borrowings outstanding under our Term Loan with book values of $1,816.4 million and $1,822.8 million at June 30, 2024 and December 31, 2023, respectively, which were subject to a weighted average interest rate of 8.20% and 7.84% for the six months ended June 30, 2024 and the year ended December 31, 2023, respectively. There were no borrowings against our Revolving Credit Facility at June 30, 2024 or December 31, 2023.

A hypothetical 100 basis point increase or decrease in weighted average interest rates under our Term Loan and Revolving Credit Facility would have increased or decreased our interest expense by $8.4 million over a twelve-month period, including consideration of the impact the hypothetical basis point change would have had on our interest rate swap agreements.

The fair value of our Credit Facilities will generally fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest. We are unable to estimate the impact on the fair value of our debt of a hypothetical 100 basis point increase or decrease in weighted average interest rates.

Investment risk

We had cash and cash equivalents including restricted cash totaling $711.8 million and $1,031.7 million as of June 30, 2024 and December 31, 2023, respectively. We also had short-term investments of $390.1 million as of June 30, 2024. Our investment policy and strategy primarily attempts to preserve capital and meet liquidity requirements without significantly increasing risk. Our cash and cash equivalents and short-term investments primarily consist of commercial papers, bank deposits and money market funds. We do not enter into investments for trading or speculative purposes. Changes in rates would primarily impact interest income due to the relatively short-term nature of our investments. A hypothetical 100 bps increase or decrease in interest rates would have increased or decreased the fair value as of June 30, 2024 by $0.5 million.

Foreign currency risk
Our functional currency is the U.S. Dollar and most of our revenues are denominated in U.S. Dollars. However, we have foreign currency risks related to a significant portion of our operating expenses, consisting of headcount related expenses as well as leases and certain other operating expenses, denominated in currencies other than the U.S. Dollar, primarily the Euro (“EUR”), Israeli Shekel (“ILS”), British Pound, Euro, Polish Zloty (“PLN”) and Romanian Leu (“RON”). Accordingly, changes in exchange rates in the future may negatively affect our future revenues and other operating results as expressed in U.S. Dollars. Our foreign currency risk is partially mitigated as our revenues recognized in currencies other than the U.S. Dollar is diversified across geographic regions and we incur expenses in the same currencies in these regions.

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We have experienced and will continue to experience fluctuations in our net income as a result of transaction gains or losses related to remeasurement of our asset and liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded.

As of June 30, 2024, we had entered into derivative contracts to purchase certain foreign currencies, including EUR, ILS, RON, and PLN, at future dates. The approximate amount of hedges was equal to $207.9 million, and all contracts are expected to mature during the upcoming 12 months.

Item 4.        CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures designed to provide reasonable assurance of achieving the objective that information in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified and pursuant to the requirements of the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by SEC Rule 13a-15(b), we carried out an evaluation, with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of June 30, 2024, the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2024.

For the quarter ended June 30, 2024, there were no changes in internal control that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II.        OTHER INFORMATION

Item 1.        LEGAL PROCEEDINGS

For a description of our legal proceedings, see Note 8, Commitments and Contingencies, included in Part I. Item I of this quarterly report on Form 10-Q.

Item 1A.    RISK FACTORS

We have offices and other significant operations located in Israel, and, therefore, our results may be adversely affected by political, economic and military instability in Israel, including the ongoing War in Israel.

While we maintain offices in the United States, we maintain offices and conduct significant operations in Israel, and most of our senior management is based in Israel. In addition, many of our employees and officers are residents of Israel. Accordingly, political, economic and military conditions in Israel directly affect our business. For example, the current political situation in Israel where the ruling parties are attempting to implement laws that essentially allow the parliament to enact laws that are preemptively immune to judicial review could adversely affect our business and results of operations. In addition, any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect our business and results of operations. Since the establishment of the State of Israel, a number of armed conflicts have taken place between Israel and its neighboring countries, as well as terrorist acts committed within Israel by hostile elements. In addition, recent political uprisings and conflicts in various countries in the Middle East, including Syria, are affecting the political stability of those countries. In addition, the tensions between Israel and Iran and certain extremist groups in the region may escalate in the future and turn violent, which could affect the Israeli economy in general and us in particular. Any armed conflicts, terrorist activities or political instability in the region could adversely affect business conditions, could harm our results of operations and could make it more difficult for us to raise capital. Parties with whom we do business may sometimes decline to travel to Israel during periods of heightened unrest or tension, forcing us to make alternative arrangements when necessary in order to meet our business partners face to face. In addition, the political and security situation in Israel may result in parties with whom we have agreements involving performance in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements. Our commercial insurance does not cover losses that may occur as a result of an event associated with the security situation in the Middle East, with limited exceptions. Although the Israeli government has in the past covered the reinstatement value of certain damages that were caused by terrorist attacks or acts of war, we cannot assure you that this government coverage will be maintained or, if maintained, will be sufficient to compensate us fully for damages incurred. Any losses or damages incurred by us could cause a significant disruption in our employees’ lives and possibly put their lives at risk, which would have a material adverse effect on our business. Any armed conflicts or political instability in the region would likely negatively affect business conditions generally and could harm our results of operations. Further, in the past, the State of Israel and Israeli companies have been subjected to economic boycotts. Several countries still restrict business with the State of Israel and with Israeli companies. These restrictive laws and policies may have an adverse impact on our results of operations, financial conditions or the expansion of our business. A campaign of boycotts, divestment and sanctions has been undertaken against Israel, which could also adversely impact our business.

On October 7, 2023, the State of Israel was attacked by Hamas, a group designated as a terrorist organization by the United States, and the State of Israel subsequently declared war on Hamas. Since that time, Israel has been engaged in armed conflict with combatants located in Gaza, the West Bank, Syria, Iran, Lebanon and Yemen. We cannot predict the outcome of developments in the War in Israel or the reaction to such developments by other countries or international authorities particularly as the conflict has triggered diplomatic rifts and protests around the world. An escalation or continuation of the conflict could result in additional military reserve duty call-ups, damage to infrastructure in Israel and other ramifications that could have a material adverse effect on our operations.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, which factors could materially affect our business, financial condition, liquidity or future results. There have been no material changes to the risk factors described in the “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2023. The risks described in our Annual Report on Form 10-K are not the only risks facing our company. Additional risks and
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uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, liquidity, results of operations, prospects or stock price.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

During the three months ended June 30, 2024, none of our officers or directors adopted or terminated any “Rule 10b5-1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” in each case, as such terms are defined in Item 408 of Regulation S-K.
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Item 6.        EXHIBITS

Exhibit
Number
Exhibit DescriptionFiled or Furnished Herewith
2.1X
10.1#X
10.2#X
31.1
31.2
32.1
32.2
101.INS
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document
101.SCHInline XBRL Taxonomy Extension Schema Document
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEFInline XBRL Taxonomy Extension Calculation Definition Document
101.LABInline XBRL Taxonomy Extension Label Linkbase Document
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

__________

#    Indicates management contract or compensatory plan.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

PLAYTIKA HOLDING CORP.
Registrant
By:/s/ Robert Antokol
Robert Antokol
Chief Executive Officer and Chairperson of the Board
By:/s/ Craig Abrahams
Craig Abrahams
President and Chief Financial Officer
Dated as of August 7, 2024
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Exhibit 2.1
FIRST AMENDMENT TO SHARE PURCHASE AGREEMENT
This FIRST AMENDMENT TO SHARE PURCHASE AGREEMENT (this
Amendment”), dated as of June 18, 2024, is entered into by and among Playtika Ltd., a company organized under the laws of Israel (“Purchaser”), G.S InnplayLabs Ltd., a company organized under the laws of Israel (the “Company”) and Fortis Advisors LLC, a Delaware limited liability company, in its capacity as the Sellers’ Representative (the “Sellers’ Representative”).
WHEREAS, the parties hereto (and additional parties) entered into that certain Share Purchase Agreement dated September 14, 2023 (the “Share Purchase Agreement”);
Whereas, the parties hereto have agreed to amend the Share Purchase Agreement pursuant to Section 12.1 thereof, all as set forth in this Amendment.
Now, Therefore, in consideration of the foregoing and the mutual promises hereinafter set forth, the parties hereto hereby agree to amend the Share Purchase Agreement as follows:
1.Unless otherwise specifically set forth herein, capitalized terms not defined herein shall have the meanings ascribed to them in Share Purchase Agreement.
2.The preface to this Amendment constitutes an integral part thereof.
3.The following amendments shall apply to the Share Purchase Agreement, effective immediately:
3.1The definitions of the terms “Earnout Period” and “First Year Earnout Period” under the Share Purchase Agreement shall be replaced in their entirety with the following definitions:
Earnout Period” means the two-year period commencing at the commencement of the First Year Earnout Period.
First Year Earnout Period” means the one-year period commencing at the 1st day of the month following the month in which the Closing occurs.
3.2In sub-Section 2.9(a)(iii), the reference to the multiple of 1.75X shall be deleted and replaced by a multiple of 1.25X, so that the multiples in sub- Sections 2.9(a)(ii) and 2.9(a)(iii) shall be identical.
3.3In sub-Sections 2.9(a)(v) and 2.9(b)(i), the reference to the value of “negative $10,000,000” shall be deleted and replaced by the value of “negative $16,000,000”.
3.4A new sub-Section 2.9(a)(vi) will be added as follows:
“Notwithstanding anything to the contrary herein, if the First Year Earnout Direct Contribution is between negative $10,000,000 and negative
$16,000,000, then the Earnout Consideration due and payable for the First Year Earnout Period pursuant to this sub-Section 2.9(a) shall be reduced by an amount equal to the difference between the actual First Year Earnout Direct




Exhibit 2.1

Contribution and target of First Year Earnout Direct Contribution of negative
$10,000,000 (e.g., for illustration purposes only, if the First Year Earnout Direct Contribution is equal to negative $13,000,000 then any Earnout Consideration due and payable for the First Year Earnout Period (if any) shall be reduced by an amount equal to $3,000,000).
3.5Notwithstanding anything else to the contrary set forth in the Share Purchase Agreement (including, without limitation, sub-Section 2.9(e)(ii)), until the lapse of the First Year Earnout Period, all matters relating to Marketing Expenses including, without limitation, amount, timing and allocation, shall be managed and controlled by the Purchaser.
3.6In sub-Section 2.9(b)(vi), the reference to the value of “zero (0) USD” shall be deleted and replaced by the value of “negative $5,000,000”.
3.7In Section 2.9 and sub-Section 2.9(c) the references to the value of “Two Hundred and Twenty Million United States Dollars ($220,000,000)” shall be deleted and replaced by the value of “One Hundred and Seventy Million United States Dollars ($170,000,000)”.
3.8The references to examples of the calculations of the First Year Earnout Consideration and the Second Year Earnout Consideration in each of sub- Sections 2.9(a)(iv) and 2.9(b)(v), respectively, shall be replaced with new examples attached hereto as Schedule 2.9(a)(iv) and Schedule 2.9(b)(v) (respectively).
4.The Company shall recommend to its Board of Directors to amend the Incentive Bonus Plan (which was approved thereby on September 28, 2023) so that for the purpose of achieving the Performance Condition thereunder, the Third Year Average Daily Gross Revenue (as defined therein) shall be greater than
$250,000 (instead of $300,000).
5.The provisions of this Amendment are in addition to, and amend, the provisions of the Share Purchase Agreement, and in the event of any inconsistency between the provisions of the Share Purchase Agreement and the provisions of this Amendment, the provisions of this Amendment shall prevail. The provisions of this Amendment together with the Share Purchase Agreement (as amended hereby) constitute the entire agreement of the parties with respect to the subject matter hereof, and supersede all prior agreements, whether written or oral, between the parties with respect thereto.
6.For the removal of doubt, it is hereby clarified that, other than as specifically provided herein, the provisions of the Share Purchase Agreement shall remain in full force and effect.
7.This Amendment shall be governed in all respects by the laws of the State of Israel, without regard for the conflict of law provisions thereof. The parties hereto irrevocably submit to the exclusive jurisdiction of any court of competent jurisdiction located within the district of Tel Aviv in respect of any dispute arising out of or in connection with this Amendment.




Exhibit 2.1

8.This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.
[Signature Page to Follow]




Exhibit 2.1

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

PURCHASER:

PLAYTIKA LTD.

By: /s/ Craig Abrahams    
Name: Craig Abrahams
Title: President & CFO

COMPANY:

G.S INNPLAY LABS LTD.

By: /s/ Craig Abrahams    
Name: Craig Abrahams
Title: Director

SELLERS’ REPRESENTATIVE:


FORTIS ADVISORS LLC, as Sellers'
Representative


By: /s/ Ryan Simkin    
Name: Ryan Simkin
Title: Managing Director

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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this June 4, 2024 (the “Effective Date”), by and between Playtika Ltd. registration number , whose principal place of business is located at 8 Hachoshlim St., Herzliya, Israel (the “Company”), and Uri Rubin (I.D. No. ) (the “Employee”).
WHEREAS, the Employee is employed by the Company as of January 15, 2017 (the “Commencement Date of Employment”);
WHEREAS, the parties wish to regulate and update their relationship in accordance with the terms and conditions set forth in this Agreement which will amend and restate an old employment agreement between the parties dated December 4, 2016.
NOW, THEREFORE, in consideration of the mutual promises, covenants and undertakings contained herein, the parties hereto agree as follows:
1.Employment; Position
1.1.The Company desires to employ the Employee and the Employee desires to be employed by the Company, as of the Commencement Date of Employment and until this Agreement shall be terminated in accordance with the provisions of Section 6 below (the “Term”).
1.2.The Employee shall be employed, on a full-time basis, in the position of Chief Technology Officer (the “Position”). The Employee shall have the authority, functions, duties and responsibilities, as may be stipulated from time to time by the CEO of the Company and/or any other person designated from time to time by the Company (the “Direct Supervisor”) and shall report thereto.
1.3.The Employee shall perform his duties and obligations hereunder from the Company’s offices or from any other place as shall be instructed, from time to time, by the Direct Supervisor.
1.4.A regular working week is of 5 days a week – Sunday to Thursday, and as additionally or otherwise required by the Position. In general, days and hours of work for the Company shall be as prescribed by the Hours of Work and Rest Law, 1951 (the “Hours of Work and Rest Law”). Saturday (Shabbat) shall be the Employee's recognized and official rest day.
1.5.The parties agree that the Position of the Employee is one of management and/or a Position that requires a special degree of personal trust, as defined under the Hours of Work and Rest Law, and accordingly, the provisions of this law and any other law amending or replacing







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such law shall not apply to the Employee. The Employee acknowledges the legitimacy of the Company’s requirement to work “overtime” or during “weekly rest-hours” without being entitled to “overtime compensation” or “weekly rest-hour compensation” (as these terms are defined in the Hours of Work and Rest Law) and undertakes to reasonably comply with such requirements of the Company. The Employee acknowledges that the consideration set for him hereunder nevertheless includes within its consideration that would otherwise have been due to him pursuant to such law.
2.Duties, Obligations and Consents
2.1.The Employee affirms and undertakes, as follows:
2.1.1.The Employee shall devote the Employee’s entire working time, know-how, energy, expertise, talent, experience and best efforts to the business and affairs of the Company and to the performance of the Employee’s duties with the Company.
2.1.2.The Employee shall perform and discharge well and faithfully, with devotion, honesty and fidelity, all of the Employee’s obligations derived from Employee’s Position and from this Agreement.
2.1.3.The Employee shall comply with all the Company’s disciplinary regulations, work rules, policies, procedures and objectives, as may be determined by the Company from time to time.
2.1.4.The Employee shall travel abroad from time to time if and as may be required by the Company to fulfill the Position.
2.1.5.The Employee shall refrain from being involved in, directly or indirectly, and shall inform the Direct Supervisor, immediately and without delay, of any affairs and/or matters that might constitute a conflict of interest with Employee’s Position and/or employment with the Company.
2.1.6.The Employee shall not assume, directly or indirectly, whether with or without consideration, any employment obligations unrelated to the Company and shall not be retained as a consultant or advisor or contractor (whether or not compensated therefor) to any other business other than with the prior written approval of the Company and in accordance with the terms of such approval.
2.1.7.The Employee shall use the resources that the Company has put at Employee’s disposal (including sensitive data and information) exclusively for the purpose







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of performing his duties, according to the Company’s applicable policies and the scope of Employee’s Position, unless agreed otherwise explicitly and in writing.
2.1.8.The Employee shall not use the Company email account (including by smartphone) for any private or personal communications. For personal purposes, Employee shall be entitled to use external email services (such as Gmail). The Employee may be entitled to make reasonable personal use of the Company’s Computers, provided that he may not store personal material on the Company’s Computers (except on folders clearly labelled as “Personal”) and shall not store company documents on personal storage space.
2.1.9.The Employee consents, of his own free will and although not required to do so under law, the data related to the Employee and the Employee’s terms of employment at the Company, as shall be received and held and managed by the Company or on its behalf, inter alia, on databases according to law, and that the Company shall be entitled to transfer such information to third parties, in Israel or abroad (including to countries which have a different level of data protection than that existing in Israel) , subject to relevant rules set under the law and in accordance with Company’s policy. The Company undertakes that the information will be used and transferred for legitimate business purposes only. Without derogating from the generality of the above, such purposes may include human resources management and assessment of potential transactions, to the extent required while maintaining the Employee’s right to privacy.
2.1.10.The Employee undertakes to carefully read and to meticulously obey the Company’s “Acceptable Device Use Policy” and “Staff Privacy Notice”, published on the Company’s internal portal and attached hereto as Exhibit C.
2.2.The Employee represents and warrants to the Company as follows:
2.2.1.The Employee is free to be employed by the Company pursuant to the terms contained in this Agreement and there are no contracts, impediments and/or restrictive covenants preventing full performance of the Employee’s duties and obligations hereunder.
2.2.2.The Employee has the requisite qualifications, experience and knowledge to perform the Employee’s obligations under this Agreement.
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2.2.3.The Employee is not involved, directly or indirectly, in any business and/or affairs and/or matters that constitute or may constitute a conflict of interests with Employee’s employment with the Company under this Agreement.
2.2.4.The execution and delivery of this Agreement and the fulfillment of the terms hereof: (i) will not constitute a default under or breach of any agreement or other instrument to which he is a party or by which he is bound, including without limitation, any confidentiality or non-competition agreement, (ii) do not require the consent of any person or entity, and (iii) shall not utilize during the term of Employee’s employment any proprietary information of any third party, including prior employers of the Employee.
2.2.5.The Employee had received from the Company all outstanding entitlements, rights and/or benefits arising out of or in any way connected with the Employee’s employment by the Company as of the Commencement Date of Employment and until the last full month which ended before the Effective Date, and the Employee (or any third party, including insurance companies and tax authorities) are owed nothing based on such prior employment period and/or with regard to it, with the exceptions of the following lawfully accrued entitlements: sick days and vacation days as shall be registered in such month’s pay-slip; any outstanding amount accrued on account of recreation pay and amounts accrued in the pension arrangement and advanced study fund managed on the Employee’s behalf. The Employee undertakes that he has no claims and/or demands of any kind against the Company regarding his employment during such period other than his entitlement to the above-mentioned accrued entitlements.
3.Compensation
3.1.Subject to and in pursuance of the Employee’s fulfillment of Employee’s obligations under this Agreement, the Company shall pay Employee a monthly gross salary of NIS 73,000 (the “Salary”).
3.2.Without derogating from the above said in Section 1.5 of the Agreement, it is hereby clarified that the Salary is calculated based on two separate components as follows: (1) a gross monthly base salary of NIS 58,400 (the “Basic Salary”): (2) a gross monthly global compensation of NIS 14,600 (the “Global Compensation”), as payment for working 64 overtime hours per month. The Global Compensation has been determined according to an







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estimation of the scope of work which the Employee shall be required to perform.
3.3.The Global Compensation shall be paid to Employee on a monthly basis, whether or not the Employee has actually performed work during overtime hours at any specific month. It is hereby agreed and acknowledged that the Global Compensation shall constitute the full consideration to which the Employee shall be entitled for the Employee’s work during overtime hours. The Employee shall not be entitled to any additional payment and/or other compensation, other than the Global Compensation, for any work performed during overtime hours.
3.4.If the quota of regular hours of work/additional hours per any given month had not been required or worked in practice, the global Compensation made for the same month shall become advance payment on the reward for additional hours the Employee shall work in the future.
3.5.Notwithstanding the above, the Employee will report the Company the actual hours of work.
3.6.The Salary shall be payable by no later than the ninth (9th) day of the consecutive calendar month following the calendar month of employment to which the payment relates.
3.7.Israeli income tax and other applicable withholdings with respect to the Salary shall be deducted from the Salary by the Company at source.
3.8.Unless otherwise specifically set forth herein, the Salary shall serve as the basis for deductions and contributions to the Pension Arrangement (as defined hereinafter) and for the calculation of all social benefits to which Employee is entitled hereunder.
3.9.An amount equal to 10% of the Salary shall be considered as a special compensation for the obligations not to compete with the Company, as set forth in Exhibit B. For clarification purposes such special consideration is already embedded in the Salary.
3.10.The Employee will be eligible to participate in the Company’s discretionary management bonus plan. The award itself and/or its amount under this plan are discretionary and left to the sole judgment of the Company. To receive payment of this bonus, the Employee must be employed by the Company at the time of payment of such bonus. It is clarified that the bonus, if and when paid, shall not constitute a salary component for any purpose, including for the purpose of calculating any fringe benefits.
4.Social and Fringe Benefits
4.1.Pension Arrangement
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4.1.1.The Employee shall be entitled to contributions to a pension arrangement of his choice (the “Pension Arrangement”) at the following monthly rates:
4.1.1.1.The Company shall contribute an aggregate monthly amount equal to 14.83% of the Salary as follows:
(i)8.33% of the Salary towards severance pay component; and
(ii)6.5% of the Salary towards compensatory payments component (“tagmulim”). In case the Employee is insured in a manager insurance policy or a provident fund (which is not a pension fund), the said rate shall include the rate of contributions towards the disability insurance, ensuring loss of earning payment of 75% of the Salary but no less than 5% towards the compensatory payments component, all subject to the terms of the Extension Order regarding the Increase of Pension Contributions - 2016 (the “Pension Order 2016”). In accordance with the terms of the Pension Order 2016, if the said rate shall not be sufficient to insure the Employee in disability insurance, the total rate of contributions shall not, in any case, exceed 7.5% of the Salary.
4.1.1.2.Employee shall contribute, and for that purpose Employee hereby irrevocably authorizes and instructs the Company to deduct from the Employee’s Salary at source, an aggregate monthly amount equal to 6% of the Salary to be paid on the Employee’s account to the Pension Arrangement.
4.1.2.The contributions rates under this Section 4.1 shall be updated and amended in accordance with the law and any relevant Extension Order.
4.1.3.The Company and Employee respectively declare and covenant that as evidenced by their respective signatures, they hereby agree and undertake to apply and be bound by the general settlement regulated in the General Order as amended (attached hereto as Exhibit A) published under section 14 of the Severance Pay Law 1963. The Company’s contributions to the Employee’s Pension Arrangement will therefore constitute the Employee’s entire entitlement to severance pay in respect of the paid Salary, in place of any severance pay to which the Employee otherwise may have become entitled at








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law.
4.1.4.In the event of termination of Employee’s employment under this Agreement for any reason other than a Termination for Cause (as defined below), the Employee shall be entitled to all sums accumulated in the said policies, including the Severance Pay.
4.1.5.The Company hereby forfeits any right it may have in the reimbursement of sums paid by Company into the above mentioned Pension Arrangement, except in the event of: (i) the Employee withdrawing such sums from the Pension Insurance Policy, other than in the event of death, disability or retirement at, or after, the age of 60; and (ii) in the occurrence of any of the events provided for in Section 16 and 17 of the Severance Payment Law, 1963.
4.2.Advanced Study Fund. The Company shall make monthly Advanced Study Fund contributions as follows: 7.5% of the Salary paid by the Company on its account and 2.5% of the Salary to be deducted by the Company from such Salary to be paid on the employee’s account, in each case up to the ceiling recognized by the income tax authorities from time to time, but not otherwise. The Employee shall bear any and all taxes applicable in connection with amounts payable by Employee and/or Company to the Advanced Study Fund.
4.3.Vacation. Employee shall be entitled to an annual leave of 24 working days per year. Each leave shall be coordinated with the Direct Supervisor with adequate regard to the needs of the Company. The Employee shall be entitled to cumulative paid vacations according to the applicable laws. Any leave days remaining unexploited at the end of any 12-month period of employment may be accrued for use during the next succeeding 12-month periods of Employee’s employment thereafter, up to an aggregate of Employee’s annual leave quota for two consecutive 12-month periods (but only if and to the extent permitted by applicable law). Prior to the expiration of a two-year period, the Company may, in its sole discretion, require the Employee to exploit any unexploited leave days exceeding such quota. Any amounts exceeding such limit, shall be cancelled by the Company and, for the avoidance of doubt, shall not be paid out on termination.
4.4.Sick Leave. Employee shall be entitled to sick leave in accordance with applicable laws and regulations as in effect from time to time. Despite the above, the Employee shall be entitled to sick leave payment from the first day of absence, subject to Company's policy as may be from time to time.
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4.5.Recreation Pay. Employee shall be entitled to annual recreation pay in accordance with applicable law.
4.6.Mobile Device. The Employee shall be entitled to a cellular phone according to the Company’s Israel Mobile Device Policy, as shall be in effect from time to time.
4.7.Equipment. The Company may, from time to time, provide the Employee with other equipment (the “Equipment”) for the Employee’s use in the course of performing the Employee’s obligations pursuant to the Position, provided that the Company’s procedures in respect thereof are followed. Employee shall bear and pay all (if any) taxes applicable to him in connection with any such Equipment provided. The Employee shall return any such Equipment to the Company’s principal office immediately following the cessation of the Employee’s employment hereunder, and the Employee shall not have any rights of lien, delay or set-off with respect to the Equipment.
4.8.Transportation Expenses. In addition to the Salary, the Company shall pay the Employee a monthly reimbursement of transportation expenses from Employee’s home to his work and back, in accordance with applicable laws and regulations as in effect from time to time.
4.9.Expenses Reimbursement. The Company shall reimburse Employee for any out-of-pocket expenses from time to time properly incurred by Employee in direct connection with his employment by the Company (including parking expenses), provided, however, that such expenses have been approved in writing and in advance by the Company. As a condition to such reimbursement, Employee shall provide the Company with the original invoices, receipts and other evidence of expenditures.
5.Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement
The Employee shall execute the Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement in the form attached hereto as Exhibit B.
6.Termination of Employment
6.1.Either party may, at any time during the Term, provide the other party hereto with at least thirty (30) days of a prior written notice (the “Termination Notice” and the “Notice Period” accordingly). The Termination Notice must be in writing and shall set forth both the date on which said notice is being furnished and the date on which the Termination Notice shall be effective. Notwithstanding the above, the Company shall be entitled to consider the Employee's clear and unequivocal oral notice of resignation as binding, in the absence of a written notice.







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6.2.During the Notice Period, the Employee shall be obligated to continue to discharge and perform all of Employee’s duties and obligations with the Company and to take all steps, satisfactory to the Company, to ensure the orderly transition to any persons designated by the Company of all matters handled by Employee during the course of Employee’s employment with the Company.
6.3.Notwithstanding Section 6.2. above, the Company may, in its sole discretion: (i) waive any and/or all of Employee’s services with the Company during the Notice Period or any part thereof or; (ii) terminate the employer-employee relationship prior to the completion of the Notice Period; provided that in any such event, the Company shall pay Employee for the aforesaid Notice Period or any part thereof, a sum equal to the compensatory payment required under applicable law.
6.4.Notwithstanding the provisions of Sections 6.2 and 6.3 above, the Company, by furnishing a notice to Employee, shall be entitled to terminate Employee’s employment with the Company with immediate effect in the event that said termination is Termination for Cause (as defined below). In the event of such Termination of Cause, then without derogating from the rights of the Company under this Agreement and/or any applicable law, the Employee shall not be entitled to any of the consideration specified in Section 6.1 above and any and all options granted to the Employee (if any), whether or not such options are vested, shall immediately expire.
6.5.The term “Termination for Cause” shall mean termination of Employee’s employment with Company as a result of the occurrence of any one of the following: (i) Employee has committed a criminal offense; (ii) Employee is in breach of Employee’s duties of trust or loyalty to the Company; (iii) any material breach of this Agreement which has not been cured by Employee within fifteen (15) days after his receipt of notice from the Company containing a description of such breach, (iv) Employee deliberately causes harm to the Company’s business affairs; (v) Employee breaches any of the provisions of the Non- compete Agreement (Exhibit B); and/or (vi) circumstances that constitute “cause” or do not entitle Employee to severance payments under any applicable law and/or under any judicial decision of a competent tribunal.
6.6.Without derogating from the Company’s rights pursuant to any applicable law, in the event that Employee shall terminate Employee’s employment with the Company with immediate effect or upon shorter notice than the Notice Period, the Company shall have the right to offset the amount of compensatory payment to which Employee would otherwise have been







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entitled under the Prior Notice Law or any part thereof, as the case may be, from any other payments payable to Employee.
6.7.Upon termination of Employee’s employment with the Company, and as a condition to the fulfillment of Company’s obligations, if any, towards Employee at such time, Employee affirms and undertakes to transfer Employee’s Position to its replacement, as shall be determined by Company, in an efficient, complete, appropriate and orderly manner, and to fulfill Employee’s obligations under this Agreement.
6.8.Upon termination of this Agreement or at such other time as directed by the Company, the Employee shall immediately return to the Company each and every asset (including documents and information) in his possession or control which belongs, or has been entrusted, to the Company.
Furthermore, upon termination of this Agreement, or at such other time as directed by the Company, the Employee shall provide the Company with a list of all passwords, write- protect codes and similar access codes used in the context of his work.
7.General Provisions
7.1.All of the payments and benefits provided to you under this Agreement are gross amounts and shall be subject to the withholding of all applicable taxes and deductions required by any applicable law.
7.2.Employee shall not be entitled to any additional bonus, payment or other compensation in connection with Employee’s employment with the Company, other than as provided herein.
7.3.The Company shall be entitled to assign or transfer any right, claim or obligation provided herein.
7.4.Employee may not assign or transfer any right, claim or obligation provided herein.
7.5.The Company shall be entitled to set-off from any and/or all payments to which Employee shall be entitled thereof, any and/or all amounts to which the Company shall be entitled from Employee at such time; and for that purpose Employee hereby irrevocably authorizes and instructs the Company to offset from any amounts which may be due or owing to Employee from the Company, all amounts to which the Company shall be entitled from Employee at any time.
7.6.The Company’s failure or delay in enforcing any of the provisions of this Agreement shall not, in any way, be construed as a waiver of any such provisions, or prevent the Company
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thereafter from enforcing each and every other provision of this Agreement, including those which were previously not enforced.
7.7.This Agreement shall not be amended, modified or varied by any oral agreement or representation other than by a written instrument executed by both parties.
7.8.This Agreement shall be interpreted and construed in accordance with the laws of the State of Israel. The parties submit to the exclusive jurisdiction of the competent courts of the city of Tel Aviv in any dispute related to this Agreement.
7.9.This Agreement including all exhibits attached thereto constitute the entire agreement of the parties hereto with respect to the subject matters hereof and supersede all prior agreements and understandings between the parties with respect thereto. Captions and paragraph headings used in this Agreement are for convenience purposes only and shall not be used for the interpretation thereof.
7.10.Notices given hereunder shall be in writing and shall be deemed to have been duly given on the date of personal delivery, on the date of postmark if mailed by certified or registered mail, or on the date sent by facsimile upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business day following transmission and electronic confirmation of receipt, addressed as set forth above or such other address as either party may designate to the other in accordance with the aforesaid procedure.
7.11.The parties agree that this Agreement constitutes, among other things, notification in accordance with the Notice to Employee and Job Candidate Law (Terms of Employment and Candidate Screening and Selection), 2002.

THE EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH AND UNDERSTANDS THE ENGLISH LANGUAGE AND DOES NOT REQUIRE TRANSLATION OF THIS AGREEMENT AND ITS EXHIBITS TO ANY OTHER LANGUAGE. THE EMPLOYEE FURTHER ACKNOLWEDGES THAT THE COMPANY HAS ADVISED HIM THAT HE MAY CONSULT AN ATTORNEY BEFORE EXECUTING THIS AGREEMENT AND THAT HE HAS BEEN AFFORDED AN OPPORTUNITY TO DO SO.












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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the day and year first set forth above.

COMPANY:
Playtika Ltd.
By: /s/ Gili Brudno
Name: Gili Brudno
Title: CHRO 6/5/2024
EMPLOYEE:
/s/ Uri Rubin
Uri Rubin
6/4/2024




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Exhibit A
GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY
*It should be noted that the specific contribution rates set out in this General Approval are subject to the contributions rates detailed in the Agreement and/or as updated according to applicable law.
By virtue of my power under section 14 of the Severance Pay Law, 1963 (hereinafter: the “Law"), I certify that payments made by an employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations, 1964 (hereinafter: the “Pension Fund") or to managers insurance including the possibility of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (hereinafter: the “Insurance Fund), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not the Insurance Fund has an annuity fund (hereinafter: the “Employer’s Payments), shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid (hereinafter: the “Exempt Salary"), provided that all the following conditions are fulfilled:
(1)The Employer’s Payments -
(a)To the Pension Fund are not less than 141/3% of the Exempt Salary or 12% of the Exempt Salary if the employer pays for his employee in addition thereto also payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name in an amount of 21/3% of the Exempt Salary. In the event the employer has not paid an addition to the said 12%, his payments shall be only in lieu of 72% of the employee’s severance pay;
(b)To the Insurance Fund are not less than one of the following:
(2)131/3% of the Exempt Salary, if the employer pays for his employee in addition thereto also payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an amount required to secure at least 75% of the Exempt Salary or in an amount of 21/2% of the Exempt Salary, the lower of the two (hereinafter: “Disability Insurance");
(3)11% of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance,








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and in such case the Employer’s Payments shall only replace 72% of the Employee’s severance pay; In the event the employer has paid in addition to the foregoing payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name in an amount of 21/3% of the Exempt Salary, the Employer’s Payments shall replace 100% of the employee’s severance pay.
(4)No later than three months from the commencement of the Employer’s Payments, a written agreement is executed between the employer and the employee in which -
(a)The employee has agreed to the arrangement pursuant to this approval in a text specifying the Employer’s Payments, the Pension Fund and Insurance Fund, as the case may be; the said agreement shall also include the text of this approval;
(b)The employer waives in advance any right, which it may have to a refund of monies from his payments, unless the employee’s right to severance pay has been revoked by a judgment by virtue of Section 16 and 17 of the Law, and to the extent so revoked and/or the employee has withdrawn monies from the Pension Fund or Insurance Fund other than by reason of an entitling event; in such regard "Entitling Event" means death, disability or retirement at after the age of 60.
(5)This approval is not such as to derogate from the employee’s right to severance pay pursuant to any law, collective agreement, extension order or employment agreement, in respect of salary over and above the Exempt Salary.
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Exhibit B
CONFIDENTIALITY, INVENTIONS, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
This Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement (the “Agreement”) is entered into this June 4 ,2024 by and between Playtika Ltd. (the “Company”) and Uri Rubin (the “Employee”). This Agreement sets forth the entire agreement between the parties hereto concerning the subject matter hereof and supersedes all prior agreements and understandings concerning the subject matter hereof. In consideration of employment by the Company of Employee, which Employee acknowledges to be good and valuable consideration for the Employee’s obligations hereunder, the Company and Employee agree as follows:
1.Proprietary Information and Confidentiality
1.1.Employee is aware that in the course of Employee’s employment with Company and/or in direct connection therewith Employee had and will continue to have access to, and be entrusted with, technical, proprietary, sales, legal and financial data and information in direct connection with the affairs and business of Company, its affiliates, customers and suppliers, and including information received by Company from any third party subject to obligations of confidentiality towards said third party, all of which such data and information, whether documentary, written, oral or computer generated, shall be deemed to be, and referred to as “Proprietary Information”, which, by way of illustration but not limitation, shall include trade and business secrets, trade names (registered or not), processes, patents improvements, ideas, inventions (whether reduced to practice or not), techniques, products, technologies (actual or planned), financial statements, marketing plans, strategies, forecasts, customer and/or suppliers lists and/or relations, research and development activities, formulas, data, know-how, designs, discoveries, models, vendors, computer hardware and computer software and programs (including object code and source code), computer software and database technologies, systems, structures and architectures (and related processes, algorithms, compositions, improvements, know-how, inventions, discoveries, concepts, ideas, designs, methods and information) of Company, drawings, operating procedures, pricing methods, marketing strategies, future plans, dealings and transactions, except for such information which, on the date of disclosure is, or thereafter becomes, available in the public domain through no fault on the part of Employee. For the avoidance of any doubt, Employee may not use Company’s name or trademarks in any activity not made by or for the Company.








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1.2.Employee agrees and declares that all Proprietary Information, patents and/or patent applications, copyrights and other intellectual property rights in connection therewith, are and shall remain the property of Company and its assigns on sole and exclusive basis. All business records, papers and documents however documented, kept or made by Employee relating to the business and affairs of Company shall be and remain the property of Company.
1.3.Employee further recognizes and acknowledges that such Proprietary Information is a valuable and unique asset of Company’s business and affairs, and that its use or disclosure other than in accordance with the provisions of the employment agreement between Employee and the Company (the “Employment Agreement”), would cause Company substantial loss and damages. Accordingly, Employee undertakes and agrees that, at all times, during the period as of the Commencement Date of Employment and until the Effective Date (both terms as defined in the Employment Agreement), the term of Employee’s employment with the Company (the “Term”) and upon its expiration thereafter, Employee kept and shall continue to keep in confidence and trust all Proprietary Information, and any part thereof, and shall not use or disclose and/or make available, directly or indirectly, to any third party any Proprietary Information without the prior written consent of Company, except and to the extent as may be necessary in the ordinary course of performing Employee’s duties pertaining to Company and except and to the extent as may be required under any applicable law, regulation, judicial decision or determination of any governmental entity.
1.4.Without derogating from the generality of the foregoing, Employee agrees as follows:
1.4.1.Not to copy, transmit, reproduce, summarize, quote, publish and/or make any commercial or other use whatsoever of the Proprietary Information, or any party thereof, without the prior written consent of Company, except as may be necessary in the performance of employee’s duties pertaining to Company;
1.4.2.To exercise the highest degree of care in safeguarding the Proprietary Information against loss, theft or other inadvertent disclosure and to take all reasonable steps necessary to ensure the maintaining of confidentiality;
1.4.3.Not to enter into the data bases of Company for any purpose whatsoever, including, without limitation, review, download, insert, change, delete and/or relocate any information, except as may be necessary in the performance of Employee’s duties pertaining to Company;
1.4.4.Upon termination of Employee’s employment, and/or as otherwise requested by

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Company, to promptly deliver to Company all Proprietary Information and any and all copies thereof, in whatever form, that had been furnished to Employee, prepared thereby and/or came to Employee’s possession in any manner whatsoever, during and in the course of his employment with Company, and shall not retain and/or make copies thereof in whatever form.
1.4.5.To compensate, reimburse and indemnify the Company and/or any third party, including without limitation, Company’s clients, for any damage, expense and/or payment incurred by them or demanded of them in consequence of a breach of Employee’s aforementioned undertakings.
1.5.Company” in this Section 1 and in Sections 2 and 3 below shall also mean the Company and any other legal entity, which directly or indirectly, controls the Company, is controlled by the Company and/or is under common control with the Company. It is clarified that the above definition shall not be construed as creating employee-employer relationship between the Employee and any other entity other than the Company as defined in the preamble to this Agreement.
2.Inventions
2.1.Employee agrees to promptly and from time to time fully inform and disclose to the Company all derivatives, inventions, designs, improvements and discoveries which Employee now has or may hereafter make and/or conceive during the Term which pertain to or relate to the Company and its business or to any experimental and/or developmental work performed by the Company and/or to the Company’s Proprietary Information, whether conceived by Employee alone or with others and whether or not conceived during regular working hours or prior to or after the date of this Agreement (“Inventions”).
2.2.All Inventions, and any and all rights, interests and title therein, shall be the exclusive property of the Company and Employee shall not be entitled to, and hereby waives now and/or in the future, any claim, right, compensation and/or reward in connection therewith, including any right for royalties in Service Inventions, as defined in Section 132 of the Patent Law, 1967 (the “Patent Law”), in accordance with the Patent Law, other than as specifically set forth in this Agreement. This clause constitutes an express agreement between Employee and the Company for the purposes of Section 134 of the Patent Law.
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2.3.In the event that by operation of law, any Invention shall be deemed Employee’s, the Employee hereby assigns and shall in the future take all the requisite steps (including by way

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of illustration only, signing all appropriate documents) to assign to the Company and/or its designee any and all of his foregoing rights, titles and interests, on a worldwide basis, and hereby further acknowledges and shall in the future acknowledge the Company’s full and exclusive ownership in all such Inventions. Employee shall, prior to or following termination of this Agreement, execute all documents and take all steps necessary to effectuate the assignment to the Company or its designee(s) and/or to assist the Company to obtain and/or perfect the exclusive and absolute rights, title and interests in and to all Inventions, whether by the registration of patent, trade mark, trade secret and/or any other applicable legal protection, and to protect same against infringement by any third party.
2.4.Without derogating from the generality of the foregoing, the provisions of this Section 2 shall apply with equal force and effect to all items that may be subject to copyright or trademark protection.
3.Non-Competition and Non-Solicitation
3.1.Employee hereby covenants to the Company that throughout the Term and thereafter for a period of twelve (12) months following the effective date of termination of Employee’s employment howsoever arising, Employee shall not:
3.1.1.Engage, directly or indirectly, in any capacity whatsoever, whether independently or as an employee, consultant or otherwise, through any corporate body and/or with or through others, in any activity competing with the actual and/or planned activities of the Company and its affiliates, as same have existed and shall exist from time to time during the Term and as shall exist at the effective date of termination of Employee’s employment with the Company.
3.1.2.Accept any position, whether as employee, consultant or otherwise with, or hold any interest in, any corporate body that competes with the actual and/or planned activities of the Company as same shall exist at the termination of his employment under this Agreement; provided, however, that nothing stated herein shall preclude Employee from owning a stock interest not greater than 5% in any publicly traded corporation.
3.1.3.Whether on Employee’s own account and/or on behalf of others, in any way interfere with and/or endeavor to entice away, or offer or solicit for the purpose of
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so interfering and/or enticing away, from the Company and/or any of its affiliates, any person, firm or company with whom the Company and/or any of

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its affiliates shall have any contractual and/or commercial relationship as an employee, consultant, licenser, joint venture, supplier, customer, distributor, agent or contractor of whatsoever nature, existing or under negotiation on, or within the twelve (12) months prior to, the effective date of termination of Employee’s employment with the Company.
3.2.Employee acknowledges that the restrictions set forth in this Section 3 are fair and reasonable, and are essential for protection of the Company’s business, the Company’s proprietary rights and other legitimate interests of the Company, in view of the nature of the business in which the Company is engaged. Employee further acknowledges that the above restrictions are customarily complied with by persons situated in a similar position, correspond with fair dealing requirements and are adequate in light of Employee’s usage of the Company resources during Employee’s employment hereunder.
3.3.Employee is aware of and acknowledges that Employee’s obligations under Section 3.1 are derived from Employee’s access to the Company’s Propriety Information and confidential information and that a portion of the salary paid to the Employee pursuant to the Employment Agreement constitutes a special consideration given to Employee in return for the aforesaid undertakings. Notwithstanding the above, the Employee declares that he is financially capable of undertaking these non-compete provisions.
3.4.If any one or more of the terms contained in this Section 3 shall, for any reason, be held to be excessively broad with regard to time, geographic scope or activity, the term shall be construed in a manner to enable it to be enforced to the extent compatible with applicable law.
4.Third Party Information
4.1.The Employee represents and undertakes that he did not and will not disclose to the Company any proprietary or confidential information belonging to any third party, including any prior or current employer or contractor, unless the written approval of that third party was received.
4.2.The Employee recognizes that the Company may receive in the future from third parties their confidential or proprietary information, subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Employee undertakes to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or entity or to use it except as necessary in carrying out his services for the Company, consistent with the Company’s agreement with
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such third party.
5.Modification and Waiver. This Agreement may not be modified or amended or terminated except by an instrument in writing signed by the parties. No term or condition of this Agreement will be deemed to have been waived, except by written instrument of the party charged with such waiver. No such written waiver will be deemed to be a continuing waiver unless specifically stated therein, and each such waiver will operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.
6.Governing Law; Jurisdiction. This Agreement and its validity, interpretation, performance and enforcement will be governed by the laws of the State of Israel, without regard to conflicts of laws principles. All judicial proceedings with respect to this Agreement or any transactions contemplated hereby or thereby shall be brought exclusively in any court of competent jurisdiction in the city of Tel-Aviv Jaffa.
7.Binding Effect. This Agreement will be binding, upon and inure to the benefit of Employee, the Company, and their respective successors and permitted assigns; provided, however, that Employee may not assign this Agreement or any part hereof.
8.Survival. The provisions of Section 1, 2 and 3 hereto shall survive termination of the Employment Agreement and shall be and remain in full force and effect at all times thereafter.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and Employee has signed this Agreement, as of the date written below.


/s/ Uri Rubin/s/ Gili Brudno
EmployeePlaytika Ltd.
6/4/20246/5/2024


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Exhibit C - Attached Separately
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this June 9, 2024 (the “Effective Date”), by and between Playtika Ltd. registration number , whose principal place of business is located at 8 Hachoshlim St., Herzliya, Israel (the “Company”), and Ariel Sandler (I.D. No. ) (the “Employee”).
WHEREAS, the Employee is employed by the Company as of January 4, 2011 (the “Commencement Date of Employment”);
WHEREAS, the parties wish to regulate their relationship in accordance with the terms and conditions set forth in this Agreement which will amend and restate an old employment agreement between the parties dated February 6, 2011.
NOW, THEREFORE, in consideration of the mutual promises, covenants and undertakings contained herein, the parties hereto agree as follows:
1.Employment; Position
1.1.The Company desires to employ the Employee and the Employee desires to be employed by the Company, as of the Commencement Date of Employment and until this Agreement shall be terminated in accordance with the provisions of Section 6 below (the “Term”).
1.2.The Employee shall be employed, on a full-time basis, in the position of Chief Operations Officer (the “Position”). The Employee shall have the authority, functions, duties and responsibilities, as may be stipulated from time to time by the CEO of the Company and/or any other person designated from time to time by the Company (the “Direct Supervisor”) and shall report thereto.
1.3.The Employee shall perform his duties and obligations hereunder from the Company’s offices or from any other place as shall be instructed, from time to time, by the Direct Supervisor.
1.4.A regular working week is of 5 days a week – Sunday to Thursday, and as additionally or otherwise required by the Position. In general, days and hours of work for the Company shall be as prescribed by the Hours of Work and Rest Law, 1951 (the “Hours of Work and Rest Law”). Saturday (Shabbat) shall be the Employee's recognized and official rest day.
1.5.The parties agree that the Position of the Employee is one of management and/or a Position that requires a special degree of personal trust, as defined under the Hours of Work and Rest Law, and accordingly, the provisions of this law and any other law amending or replacing







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such law shall not apply to the Employee. The Employee acknowledges the legitimacy of the Company’s requirement to work “overtime” or during “weekly rest-hours” without being entitled to “overtime compensation” or “weekly rest-hour compensation” (as these terms are defined in the Hours of Work and Rest Law) and undertakes to reasonably comply with such requirements of the Company. The Employee acknowledges that the consideration set for him hereunder nevertheless includes within its consideration that would otherwise have been due to him pursuant to such law.
2.Duties, Obligations and Consents
2.1.The Employee affirms and undertakes, as follows:
2.1.1.The Employee shall devote the Employee’s entire working time, know-how, energy, expertise, talent, experience and best efforts to the business and affairs of the Company and to the performance of the Employee’s duties with the Company.
2.1.2.The Employee shall perform and discharge well and faithfully, with devotion, honesty and fidelity, all of the Employee’s obligations derived from Employee’s Position and from this Agreement.
2.1.3.The Employee shall comply with all the Company’s disciplinary regulations, work rules, policies, procedures and objectives, as may be determined by the Company from time to time.
2.1.4.The Employee shall travel abroad from time to time if and as may be required by the Company to fulfill the Position.
2.1.5.The Employee shall refrain from being involved in, directly or indirectly, and shall inform the Direct Supervisor, immediately and without delay, of any affairs and/or matters that might constitute a conflict of interest with Employee’s Position and/or employment with the Company.
2.1.6.The Employee shall not assume, directly or indirectly, whether with or without consideration, any employment obligations unrelated to the Company and shall not be retained as a consultant or advisor or contractor (whether or not compensated therefor) to any other business other than with the prior written approval of the Company and in accordance with the terms of such approval.
2.1.7.The Employee shall use the resources that the Company has put at Employee’s disposal (including sensitive data and information) exclusively for the purpose







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of performing his duties, according to the Company’s applicable policies and the scope of Employee’s Position, unless agreed otherwise explicitly and in writing.
2.1.8.The Employee shall reasonably use the Company’s email account (including by smartphone) for any private or personal communications. For personal purposes, Employee shall be entitled to use external email services (such as Gmail). The Employee may be entitled to make reasonable personal use of the Company’s Computers, provided that he may not store personal material on the Company’s Computers (except on folders clearly labelled as “Personal”) and shall not store company documents on personal storage space.
2.1.9.The Employee consents, of his own free will and although not required to do so under law, the data related to the Employee and the Employee’s terms of employment at the Company, as shall be received and held and managed by the Company or on its behalf, inter alia, on databases according to law, and that the Company shall be entitled to transfer such information to third parties, in Israel or abroad (including to countries which have a different level of data protection than that existing in Israel) , subject to relevant rules set under the law and in accordance with Company’s policy. The Company undertakes that the information will be used and transferred for legitimate business purposes only. Without derogating from the generality of the above, such purposes may include human resources management and assessment of potential transactions, to the extent required while maintaining the Employee’s right to privacy.
2.1.10.The Employee undertakes to carefully read and to meticulously obey the Company’s “Acceptable Device Use Policy” and “Staff Privacy Notice”, published on the Company’s internal portal and attached hereto as Exhibit C.
2.2.The Employee represents and warrants to the Company as follows:
2.2.1.The Employee is free to be employed by the Company pursuant to the terms contained in this Agreement and there are no contracts, impediments and/or restrictive covenants preventing full performance of the Employee’s duties and obligations hereunder.
2.2.2.The Employee has the requisite qualifications, experience and knowledge to perform the Employee’s obligations under this Agreement.
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2.2.3.The Employee is not involved, directly or indirectly, in any business and/or affairs and/or matters that constitute or may constitute a conflict of interests with Employee’s employment with the Company under this Agreement.
2.2.4.The execution and delivery of this Agreement and the fulfillment of the terms hereof: (i) will not constitute a default under or breach of any agreement or other instrument to which he is a party or by which he is bound, including without limitation, any confidentiality or non-competition agreement, (ii) do not require the consent of any person or entity, and (iii) shall not utilize during the term of Employee’s employment any proprietary information of any third party, including prior employers of the Employee.
2.2.5.The Employee had received from the Company all outstanding entitlements, rights and/or benefits arising out of or in any way connected with the Employee’s employment by the Company as of the Commencement Date of Employment and until the last full month which ended before the Effective Date, and the Employee (or any third party, including insurance companies and tax authorities) are owed nothing based on such prior employment period and/or with regard to it, with the exceptions of the following lawfully accrued entitlements: sick days and vacation days as shall be registered in such month’s pay-slip; any outstanding amount accrued on account of recreation pay and amounts accrued in the pension arrangement and advanced study fund managed on the Employee’s behalf. The Employee undertakes that he has no claims and/or demands of any kind against the Company regarding his employment during such period other than his entitlement to the above-mentioned accrued entitlements.
3.Compensation
3.1.Subject to and in pursuance of the Employee’s fulfillment of Employee’s obligations under this Agreement, the Company shall pay Employee a monthly gross salary of NIS 85,000 (the “Salary”).
3.2.Without derogating from the above said in Section 1.5 of the Agreement, it is hereby clarified that the Salary is calculated based on two separate components as follows: (1) a gross monthly base salary of NIS 68,000 (the “Basic Salary”): (2) a gross monthly global compensation of NIS 17,000 (the “Global Compensation”), as payment for working 64 overtime hours per month. The Global Compensation has been determined according to an







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estimation of the scope of work which the Employee shall be required to perform.
3.3.The Global Compensation shall be paid to Employee on a monthly basis, whether or not the Employee has actually performed work during overtime hours at any specific month. It is hereby agreed and acknowledged that the Global Compensation shall constitute the full consideration to which the Employee shall be entitled for the Employee’s work during overtime hours. The Employee shall not be entitled to any additional payment and/or other compensation, other than the Global Compensation, for any work performed during overtime hours.
3.4.If the quota of regular hours of work/additional hours per any given month had not been required or worked in practice, the global Compensation made for the same month shall become advance payment on the reward for additional hours the Employee shall work in the future.
3.5.Notwithstanding the above, the Employee will report the Company the actual hours of work.
3.6.The Salary shall be payable by no later than the ninth (9th) day of the consecutive calendar month following the calendar month of employment to which the payment relates.
3.7.Israeli income tax and other applicable withholdings with respect to the Salary shall be deducted from the Salary by the Company at source.
3.8.Unless otherwise specifically set forth herein, the Salary shall serve as the basis for deductions and contributions to the Pension Arrangement (as defined hereinafter) and for the calculation of all social benefits to which Employee is entitled hereunder.
3.9.An amount equal to 10% of the Salary shall be considered as a special compensation for the obligations not to compete with the Company, as set forth in Exhibit B. For clarification purposes such special consideration is already embedded in the Salary.
3.10.The Employee will be eligible to participate in the Company’s discretionary management bonus plan. The award itself and/or its amount under this plan are discretionary and left to the sole judgment of the Company. To receive payment of this bonus, the Employee must be employed by the Company at the time of payment of such bonus. It is clarified that the bonus, if and when paid, shall not constitute a salary component for any purpose, including for the purpose of calculating any fringe benefits.
4.Social and Fringe Benefits
4.1.Pension Arrangement
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DocuSign Envelope ID: BF16678C-CA2E-435D-82DD-0927712E4D4E
4.1.1.The Employee shall be entitled to contributions to a pension arrangement of his choice (the “Pension Arrangement”) at the following monthly rates:
4.1.1.1.The Company shall contribute an aggregate monthly amount equal to 14.83% of the Salary as follows:
(i)8.33% of the Salary towards severance pay component; and
(ii)6.5% of the Salary towards compensatory payments component (“tagmulim”). In case the Employee is insured in a manager insurance policy or a provident fund (which is not a pension fund), the said rate shall include the rate of contributions towards the disability insurance, ensuring loss of earning payment of 75% of the Salary but no less than 5% towards the compensatory payments component, all subject to the terms of the Extension Order regarding the Increase of Pension Contributions - 2016 (the “Pension Order 2016”). In accordance with the terms of the Pension Order 2016, if the said rate shall not be sufficient to insure the Employee in disability insurance, the total rate of contributions shall not, in any case, exceed 7.5% of the Salary.
4.1.1.2.Employee shall contribute, and for that purpose Employee hereby irrevocably authorizes and instructs the Company to deduct from the Employee’s Salary at source, an aggregate monthly amount equal to 6% of the Salary to be paid on the Employee’s account to the Pension Arrangement.
4.1.2.The contributions rates under this Section 4.1 shall be updated and amended in accordance with the law and any relevant Extension Order.
4.1.3.The Company and Employee respectively declare and covenant that as evidenced by their respective signatures, they hereby agree and undertake to apply and be bound by the general settlement regulated in the General Order as amended (attached hereto as Exhibit A) published under section 14 of the Severance Pay Law 1963. The Company’s contributions to the Employee’s Pension Arrangement will therefore constitute the Employee’s entire entitlement to severance pay in respect of the paid Salary, in place of any severance pay to which the Employee otherwise may have become entitled at








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law.
4.1.4.In the event of termination of Employee’s employment under this Agreement for any reason other than a Termination for Cause (as defined below), the Employee shall be entitled to all sums accumulated in the said policies, including the Severance Pay.
4.1.5.The Company hereby forfeits any right it may have in the reimbursement of sums paid by Company into the above mentioned Pension Arrangement, except in the event of: (i) the Employee withdrawing such sums from the Pension Insurance Policy, other than in the event of death, disability or retirement at, or after, the age of 60; and (ii) in the occurrence of any of the events provided for in Section 16 and 17 of the Severance Payment Law, 1963.
4.2.Advanced Study Fund. The Company shall make monthly Advanced Study Fund contributions as follows: 7.5% of the Salary paid by the Company on its account and 2.5% of the Salary to be deducted by the Company from such Salary to be paid on the employee’s account, in each case up to the ceiling recognized by the income tax authorities from time to time, but not otherwise. The Employee shall bear any and all taxes applicable in connection with amounts payable by Employee and/or Company to the Advanced Study Fund.
4.3.Vacation. Employee shall be entitled to an annual leave of 24 working days per year. Each leave shall be coordinated with the Direct Supervisor with adequate regard to the needs of the Company. The Employee shall be entitled to cumulative paid vacations according to the applicable laws. Any leave days remaining unexploited at the end of any 12-month period of employment may be accrued for use during the next succeeding 12-month periods of Employee’s employment thereafter, up to an aggregate of Employee’s annual leave quota for two consecutive 12-month periods (but only if and to the extent permitted by applicable law). Prior to the expiration of a two-year period, the Company may, in its sole discretion, require the Employee to exploit any unexploited leave days exceeding such quota. Any amounts exceeding such limit, shall be cancelled by the Company and, for the avoidance of doubt, shall not be paid out on termination.
4.4.Sick Leave. Employee shall be entitled to sick leave in accordance with applicable laws and regulations as in effect from time to time. Despite the above, the Employee shall be entitled to sick leave payment from the first day of absence, subject to Company's policy as may be from time to time.
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4.5.Recreation Pay. Employee shall be entitled to annual recreation pay in accordance with applicable law.
4.6.Mobile Device. The Employee shall be entitled to a cellular phone according to the Company’s Israel Mobile Device Policy, as shall be in effect from time to time.
4.7.Equipment. The Company may, from time to time, provide the Employee with other equipment (the “Equipment”) for the Employee’s use in the course of performing the Employee’s obligations pursuant to the Position, provided that the Company’s procedures in respect thereof are followed. Employee shall bear and pay all (if any) taxes applicable to him in connection with any such Equipment provided. The Employee shall return any such Equipment to the Company’s principal office immediately following the cessation of the Employee’s employment hereunder, and the Employee shall not have any rights of lien, delay or set-off with respect to the Equipment.
4.8.Transportation Expenses. In addition to the Salary, the Company shall pay the Employee a monthly net amount of NIS 1,000 as reimbursement of transportations expenses from Employee’s home to his work and back.
4.9.Expenses Reimbursement. The Company shall reimburse Employee for any out-of-pocket expenses from time to time properly incurred by Employee in direct connection with his employment by the Company (including parking expenses), provided, however, that such expenses have been approved in writing and in advance by the Company. As a condition to such reimbursement, Employee shall provide the Company with the original invoices, receipts and other evidence of expenditures.
5.Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement
The Employee shall execute the Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement in the form attached hereto as Exhibit B.
6.Termination of Employment
6.1.Either party may, at any time during the Term, provide the other party hereto with at least thirty (30) days of a prior written notice (the “Termination Notice” and the “Notice Period” accordingly). The Termination Notice must be in writing and shall set forth both the date on which said notice is being furnished and the date on which the Termination Notice shall be effective. Notwithstanding the above, the Company shall be entitled to consider the Employee's clear and unequivocal oral notice of resignation as binding, in the absence of a written notice.







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6.2.During the Notice Period, the Employee shall be obligated to continue to discharge and perform all of Employee’s duties and obligations with the Company and to take all steps, satisfactory to the Company, to ensure the orderly transition to any persons designated by the Company of all matters handled by Employee during the course of Employee’s employment with the Company.
6.3.Notwithstanding Section 6.2. above, the Company may, in its sole discretion: (i) waive any and/or all of Employee’s services with the Company during the Notice Period or any part thereof or; (ii) terminate the employer-employee relationship prior to the completion of the Notice Period; provided that in any such event, the Company shall pay Employee for the aforesaid Notice Period or any part thereof, a sum equal to the compensatory payment required under applicable law.
6.4.Notwithstanding the provisions of Sections 6.2 and 6.3 above, the Company, by furnishing a notice to Employee, shall be entitled to terminate Employee’s employment with the Company with immediate effect in the event that said termination is Termination for Cause (as defined below). In the event of such Termination of Cause, then without derogating from the rights of the Company under this Agreement and/or any applicable law, the Employee shall not be entitled to any of the consideration specified in Section 6.1 above and any and all options granted to the Employee (if any), whether or not such options are vested, shall immediately expire.
6.5.The term “Termination for Cause” shall mean termination of Employee’s employment with Company as a result of the occurrence of any one of the following: (i) Employee has committed a criminal offense; (ii) Employee is in breach of Employee’s duties of trust or loyalty to the Company; (iii) any material breach of this Agreement which has not been cured by Employee within fifteen (15) days after his receipt of notice from the Company containing a description of such breach, (iv) Employee deliberately causes harm to the Company’s business affairs; (v) Employee breaches any of the provisions of the Non- compete Agreement (Exhibit B); and/or (vi) circumstances that constitute “cause” or do not entitle Employee to severance payments under any applicable law and/or under any judicial decision of a competent tribunal.
6.6.Without derogating from the Company’s rights pursuant to any applicable law, in the event that Employee shall terminate Employee’s employment with the Company with immediate effect or upon shorter notice than the Notice Period, the Company shall have the right to offset the amount of compensatory payment to which Employee would otherwise have been







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entitled under the Prior Notice Law or any part thereof, as the case may be, from any other payments payable to Employee.
6.7.Upon termination of Employee’s employment with the Company, and as a condition to the fulfillment of Company’s obligations, if any, towards Employee at such time, Employee affirms and undertakes to transfer Employee’s Position to its replacement, as shall be determined by Company, in an efficient, complete, appropriate and orderly manner, and to fulfill Employee’s obligations under this Agreement.
6.8.Upon termination of this Agreement or at such other time as directed by the Company, the Employee shall immediately return to the Company each and every asset (including documents and information) in his possession or control which belongs, or has been entrusted, to the Company.
Furthermore, upon termination of this Agreement, or at such other time as directed by the Company, the Employee shall provide the Company with a list of all passwords, write- protect codes and similar access codes used in the context of his work.
7.General Provisions
7.1.All of the payments and benefits provided to you under this Agreement are gross amounts and shall be subject to the withholding of all applicable taxes and deductions required by any applicable law.
7.2.Employee shall not be entitled to any additional bonus, payment or other compensation in connection with Employee’s employment with the Company, other than as provided herein.
7.3.The Company shall be entitled to assign or transfer any right, claim or obligation provided herein.
7.4.Employee may not assign or transfer any right, claim or obligation provided herein.
7.5.The Company shall be entitled to set-off from any and/or all payments to which Employee shall be entitled thereof, any and/or all amounts to which the Company shall be entitled from Employee at such time; and for that purpose Employee hereby irrevocably authorizes and instructs the Company to offset from any amounts which may be due or owing to Employee from the Company, all amounts to which the Company shall be entitled from Employee at any time.
7.6.The Company’s failure or delay in enforcing any of the provisions of this Agreement shall not, in any way, be construed as a waiver of any such provisions, or prevent the Company
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thereafter from enforcing each and every other provision of this Agreement, including those which were previously not enforced.
7.7.This Agreement shall not be amended, modified or varied by any oral agreement or representation other than by a written instrument executed by both parties.
7.8.This Agreement shall be interpreted and construed in accordance with the laws of the State of Israel. The parties submit to the exclusive jurisdiction of the competent courts of the city of Tel Aviv in any dispute related to this Agreement.
7.9.This Agreement including all exhibits attached thereto constitute the entire agreement of the parties hereto with respect to the subject matters hereof and supersede all prior agreements and understandings between the parties with respect thereto. Captions and paragraph headings used in this Agreement are for convenience purposes only and shall not be used for the interpretation thereof.
7.10.Notices given hereunder shall be in writing and shall be deemed to have been duly given on the date of personal delivery, on the date of postmark if mailed by certified or registered mail, or on the date sent by facsimile upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business day following transmission and electronic confirmation of receipt, addressed as set forth above or such other address as either party may designate to the other in accordance with the aforesaid procedure.
7.11.The parties agree that this Agreement constitutes, among other things, notification in accordance with the Notice to Employee and Job Candidate Law (Terms of Employment and Candidate Screening and Selection), 2002.

THE EMPLOYEE ACKNOWLEDGES THAT HE IS FAMILIAR WITH AND UNDERSTANDS THE ENGLISH LANGUAGE AND DOES NOT REQUIRE TRANSLATION OF THIS AGREEMENT AND ITS EXHIBITS TO ANY OTHER LANGUAGE. THE EMPLOYEE FURTHER ACKNOLWEDGES THAT THE COMPANY HAS ADVISED HIM THAT HE MAY CONSULT AN ATTORNEY BEFORE EXECUTING THIS AGREEMENT AND THAT HE HAS BEEN AFFORDED AN OPPORTUNITY TO DO SO.












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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the day and year first set forth above.

COMPANY:
Playtika Ltd.
By: /s/ Gili Brudno
Name: Gili Brudno
Title: CHRO 6/9/2024
EMPLOYEE
/s/ Ariel Sandler
Ariel Sandler
6/9/2024

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Exhibit A
GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY
*It should be noted that the specific contribution rates set out in this General Approval are subject to the contributions rates detailed in the Agreement and/or as updated according to applicable law.
By virtue of my power under section 14 of the Severance Pay Law, 1963 (hereinafter: the “Law"), I certify that payments made by an employer commencing from the date of the publication of this approval publication for his employee to a comprehensive pension benefit fund that is not an insurance fund within the meaning thereof in the Income Tax (Rules for the Approval and Conduct of Benefit Funds) Regulations, 1964 (hereinafter: the “Pension Fund") or to managers insurance including the possibility of an insurance pension fund or a combination of payments to an annuity fund and to a non-annuity fund (hereinafter: the “Insurance Fund), including payments made by him by a combination of payments to a Pension Fund and an Insurance Fund, whether or not the Insurance Fund has an annuity fund (hereinafter: the “Employer’s Payments), shall be made in lieu of the severance pay due to the said employee in respect of the salary from which the said payments were made and for the period they were paid (hereinafter: the “Exempt Salary"), provided that all the following conditions are fulfilled:
(1)The Employer’s Payments -
(a)To the Pension Fund are not less than 141/3% of the Exempt Salary or 12% of the Exempt Salary if the employer pays for his employee in addition thereto also payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name in an amount of 21/3% of the Exempt Salary. In the event the employer has not paid an addition to the said 12%, his payments shall be only in lieu of 72% of the employee’s severance pay;
(b)To the Insurance Fund are not less than one of the following:
(2)131/3% of the Exempt Salary, if the employer pays for his employee in addition thereto also payments to secure monthly income in the event of disability, in a plan approved by the Commissioner of the Capital Market, Insurance and Savings Department of the Ministry of Finance, in an amount required to secure at least 75% of the Exempt Salary or in an amount of 21/2% of the Exempt Salary, the lower of the two (hereinafter: “Disability Insurance");
(3)11% of the Exempt Salary, if the employer paid, in addition, a payment to the Disability Insurance,








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and in such case the Employer’s Payments shall only replace 72% of the Employee’s severance pay; In the event the employer has paid in addition to the foregoing payments to supplement severance pay to a benefit fund for severance pay or to an Insurance Fund in the employee’s name in an amount of 21/3% of the Exempt Salary, the Employer’s Payments shall replace 100% of the employee’s severance pay.
(4)No later than three months from the commencement of the Employer’s Payments, a written agreement is executed between the employer and the employee in which -
(a)The employee has agreed to the arrangement pursuant to this approval in a text specifying the Employer’s Payments, the Pension Fund and Insurance Fund, as the case may be; the said agreement shall also include the text of this approval;
(b)The employer waives in advance any right, which it may have to a refund of monies from his payments, unless the employee’s right to severance pay has been revoked by a judgment by virtue of Section 16 and 17 of the Law, and to the extent so revoked and/or the employee has withdrawn monies from the Pension Fund or Insurance Fund other than by reason of an entitling event; in such regard "Entitling Event" means death, disability or retirement at after the age of 60.
(5)This approval is not such as to derogate from the employee’s right to severance pay pursuant to any law, collective agreement, extension order or employment agreement, in respect of salary over and above the Exempt Salary.
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Exhibit B
CONFIDENTIALITY, INVENTIONS, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
This Confidentiality, Inventions, Non-Competition and Non-Solicitation Agreement (the “Agreement”) is entered into this June 9, 2024 by and between Playtika Ltd. (the “Company”) and Ariel Sandler (the “Employee”). This Agreement sets forth the entire agreement between the parties hereto concerning the subject matter hereof and supersedes all prior agreements and understandings concerning the subject matter hereof. In consideration of employment by the Company of Employee, which Employee acknowledges to be good and valuable consideration for the Employee’s obligations hereunder, the Company and Employee agree as follows:
1.Proprietary Information and Confidentiality
1.1.Employee is aware that in the course of Employee’s employment with Company and/or in direct connection therewith Employee had and will continue to have access to, and be entrusted with, technical, proprietary, sales, legal and financial data and information in direct connection with the affairs and business of Company, its affiliates, customers and suppliers, and including information received by Company from any third party subject to obligations of confidentiality towards said third party, all of which such data and information, whether documentary, written, oral or computer generated, shall be deemed to be, and referred to as “Proprietary Information”, which, by way of illustration but not limitation, shall include trade and business secrets, trade names (registered or not), processes, patents improvements, ideas, inventions (whether reduced to practice or not), techniques, products, technologies (actual or planned), financial statements, marketing plans, strategies, forecasts, customer and/or suppliers lists and/or relations, research and development activities, formulas, data, know-how, designs, discoveries, models, vendors, computer hardware and computer software and programs (including object code and source code), computer software and database technologies, systems, structures and architectures (and related processes, algorithms, compositions, improvements, know-how, inventions, discoveries, concepts, ideas, designs, methods and information) of Company, drawings, operating procedures, pricing methods, marketing strategies, future plans, dealings and transactions, except for such information which, on the date of disclosure is, or thereafter becomes, available in the public domain through no fault on the part of Employee. For the avoidance of any doubt, Employee may not use Company’s name or trademarks in any activity not made by or for the Company.








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1.2.Employee agrees and declares that all Proprietary Information, patents and/or patent applications, copyrights and other intellectual property rights in connection therewith, are and shall remain the property of Company and its assigns on sole and exclusive basis. All business records, papers and documents however documented, kept or made by Employee relating to the business and affairs of Company shall be and remain the property of Company.
1.3.Employee further recognizes and acknowledges that such Proprietary Information is a valuable and unique asset of Company’s business and affairs, and that its use or disclosure other than in accordance with the provisions of the employment agreement between Employee and the Company (the “Employment Agreement”), would cause Company substantial loss and damages. Accordingly, Employee undertakes and agrees that, at all times, during the period as of the Commencement Date of Employment and until the Effective Date (both terms as defined in the Employment Agreement), the term of Employee’s employment with the Company (the “Term”) and upon its expiration thereafter, Employee kept and shall continue to keep in confidence and trust all Proprietary Information, and any part thereof, and shall not use or disclose and/or make available, directly or indirectly, to any third party any Proprietary Information without the prior written consent of Company, except and to the extent as may be necessary in the ordinary course of performing Employee’s duties pertaining to Company and except and to the extent as may be required under any applicable law, regulation, judicial decision or determination of any governmental entity.
1.4.Without derogating from the generality of the foregoing, Employee agrees as follows:
1.4.1.Not to copy, transmit, reproduce, summarize, quote, publish and/or make any commercial or other use whatsoever of the Proprietary Information, or any party thereof, without the prior written consent of Company, except as may be necessary in the performance of employee’s duties pertaining to Company;
1.4.2.To exercise the highest degree of care in safeguarding the Proprietary Information against loss, theft or other inadvertent disclosure and to take all reasonable steps necessary to ensure the maintaining of confidentiality;
1.4.3.Not to enter into the data bases of Company for any purpose whatsoever, including, without limitation, review, download, insert, change, delete and/or relocate any information, except as may be necessary in the performance of Employee’s duties pertaining to Company;
1.4.4.Upon termination of Employee’s employment, and/or as otherwise requested by



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Company, to promptly deliver to Company all Proprietary Information and any and all copies thereof, in whatever form, that had been furnished to Employee, prepared thereby and/or came to Employee’s possession in any manner whatsoever, during and in the course of his employment with Company, and shall not retain and/or make copies thereof in whatever form.
1.4.5.To compensate, reimburse and indemnify the Company and/or any third party, including without limitation, Company’s clients, for any damage, expense and/or payment incurred by them or demanded of them in consequence of a breach of Employee’s aforementioned undertakings.
1.5.Company” in this Section 1 and in Sections 2 and 3 below shall also mean the Company and any other legal entity, which directly or indirectly, controls the Company, is controlled by the Company and/or is under common control with the Company. It is clarified that the above definition shall not be construed as creating employee-employer relationship between the Employee and any other entity other than the Company as defined in the preamble to this Agreement.
2.Inventions
2.1.Employee agrees to promptly and from time to time fully inform and disclose to the Company all derivatives, inventions, designs, improvements and discoveries which Employee now has or may hereafter make and/or conceive during the Term which pertain to or relate to the Company and its business or to any experimental and/or developmental work performed by the Company and/or to the Company’s Proprietary Information, whether conceived by Employee alone or with others and whether or not conceived during regular working hours or prior to or after the date of this Agreement (“Inventions”).
2.2.All Inventions, and any and all rights, interests and title therein, shall be the exclusive property of the Company and Employee shall not be entitled to, and hereby waives now and/or in the future, any claim, right, compensation and/or reward in connection therewith, including any right for royalties in Service Inventions, as defined in Section 132 of the Patent Law, 1967 (the “Patent Law”), in accordance with the Patent Law, other than as specifically set forth in this Agreement. This clause constitutes an express agreement between Employee and the Company for the purposes of Section 134 of the Patent Law.


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2.3.In the event that by operation of law, any Invention shall be deemed Employee’s, the Employee hereby assigns and shall in the future take all the requisite steps (including by way



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of illustration only, signing all appropriate documents) to assign to the Company and/or its designee any and all of his foregoing rights, titles and interests, on a worldwide basis, and hereby further acknowledges and shall in the future acknowledge the Company’s full and exclusive ownership in all such Inventions. Employee shall, prior to or following termination of this Agreement, execute all documents and take all steps necessary to effectuate the assignment to the Company or its designee(s) and/or to assist the Company to obtain and/or perfect the exclusive and absolute rights, title and interests in and to all Inventions, whether by the registration of patent, trade mark, trade secret and/or any other applicable legal protection, and to protect same against infringement by any third party.
2.4.Without derogating from the generality of the foregoing, the provisions of this Section 2 shall apply with equal force and effect to all items that may be subject to copyright or trademark protection.
3.Non-Competition and Non-Solicitation
3.1.Employee hereby covenants to the Company that throughout the Term and thereafter for a period of twelve (12) months following the effective date of termination of Employee’s employment howsoever arising, Employee shall not:
3.1.1.Engage, directly or indirectly, in any capacity whatsoever, whether independently or as an employee, consultant or otherwise, through any corporate body and/or with or through others, in any activity competing with the actual and/or planned activities of the Company and its affiliates, as same have existed and shall exist from time to time during the Term and as shall exist at the effective date of termination of Employee’s employment with the Company.
3.1.2.Accept any position, whether as employee, consultant or otherwise with, or hold any interest in, any corporate body that competes with the actual and/or planned activities of the Company as same shall exist at the termination of his employment under this Agreement; provided, however, that nothing stated herein shall preclude Employee from owning a stock interest not greater than 5% in any publicly traded corporation.
3.1.3.Whether on Employee’s own account and/or on behalf of others, in any way interfere with and/or endeavor to entice away, or offer or solicit for the purpose of


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so interfering and/or enticing away, from the Company and/or any of its affiliates, any person, firm or company with whom the Company and/or any of



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its affiliates shall have any contractual and/or commercial relationship as an employee, consultant, licenser, joint venture, supplier, customer, distributor, agent or contractor of whatsoever nature, existing or under negotiation on, or within the twelve (12) months prior to, the effective date of termination of Employee’s employment with the Company.
3.2.Employee acknowledges that the restrictions set forth in this Section 3 are fair and reasonable, and are essential for protection of the Company’s business, the Company’s proprietary rights and other legitimate interests of the Company, in view of the nature of the business in which the Company is engaged. Employee further acknowledges that the above restrictions are customarily complied with by persons situated in a similar position, correspond with fair dealing requirements and are adequate in light of Employee’s usage of the Company resources during Employee’s employment hereunder.
3.3.Employee is aware of and acknowledges that Employee’s obligations under Section 3.1 are derived from Employee’s access to the Company’s Propriety Information and confidential information and that a portion of the salary paid to the Employee pursuant to the Employment Agreement constitutes a special consideration given to Employee in return for the aforesaid undertakings. Notwithstanding the above, the Employee declares that he is financially capable of undertaking these non-compete provisions.
3.4.If any one or more of the terms contained in this Section 3 shall, for any reason, be held to be excessively broad with regard to time, geographic scope or activity, the term shall be construed in a manner to enable it to be enforced to the extent compatible with applicable law.
4.Third Party Information
4.1.The Employee represents and undertakes that he did not and will not disclose to the Company any proprietary or confidential information belonging to any third party, including any prior or current employer or contractor, unless the written approval of that third party was received.
4.2.The Employee recognizes that the Company may receive in the future from third parties their confidential or proprietary information, subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. The Employee undertakes to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or entity or to use it except as necessary in carrying out his services for the Company, consistent with the Company’s agreement with


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such third party.
5.Modification and Waiver. This Agreement may not be modified or amended or terminated except by an instrument in writing signed by the parties. No term or condition of this Agreement will be deemed to have been waived, except by written instrument of the party charged with such waiver. No such written waiver will be deemed to be a continuing waiver unless specifically stated therein, and each such waiver will operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.
6.Governing Law; Jurisdiction. This Agreement and its validity, interpretation, performance and enforcement will be governed by the laws of the State of Israel, without regard to conflicts of laws principles. All judicial proceedings with respect to this Agreement or any transactions contemplated hereby or thereby shall be brought exclusively in any court of competent jurisdiction in the city of Tel-Aviv Jaffa.
7.Binding Effect. This Agreement will be binding, upon and inure to the benefit of Employee, the Company, and their respective successors and permitted assigns; provided, however, that Employee may not assign this Agreement or any part hereof.
8.Survival. The provisions of Section 1, 2 and 3 hereto shall survive termination of the Employment Agreement and shall be and remain in full force and effect at all times thereafter.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and Employee has signed this Agreement, as of the date written below.

/s/ Ariel Sandler 6/9/2024/s/ Gili Brudno 6/9/2024
EmployeePlaytika Ltd.




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Exhibit C - Attached Separately


Exhibit 31.1

Certification of
Chief Executive Officer Pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002

I, Robert Antokol, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Playtika Holding Corp.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 7, 2024By:/s/ Robert Antokol
Robert Antokol
Chief Executive Officer and Chairperson of the Board
(principal executive officer)


Exhibit 31.2

Certification of
Chief Financial Officer Pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002

I, Craig Abrahams, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Playtika Holding Corp.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

a)    designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 7, 2024By:/s/ Craig Abrahams
Craig Abrahams
President and Chief Financial Officer
(principal financial officer)


Exhibit 32.1

Certification of
Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Playtika Holding Corp. (the “Company”) hereby certifies, to such officer’s knowledge, that:

1.    The Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


August 7, 2024By:/s/ Robert Antokol
Robert Antokol
Chief Executive Officer and Chairperson of the Board
(principal executive officer)


Exhibit 32.2

Certification of
Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Playtika Holding Corp. (the “Company”) hereby certifies, to such officer’s knowledge, that:

1.    The Quarterly Report on Form 10-Q of the Company for the quarterly period ended June 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


August 7, 2024By:/s/ Craig Abrahams
Craig Abrahams
President and Chief Financial Officer
(principal financial officer)

v3.24.2.u1
COVER - shares
6 Months Ended
Jun. 30, 2024
Aug. 05, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-39896  
Entity Registrant Name PLAYTIKA HOLDING CORP.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 81-3634591  
Entity Address, Address Line One c/o Playtika Ltd.  
Entity Address, Address Line Two HaChoshlim St 8  
Entity Address, City or Town Herzliya Pituach  
Entity Address, Country IL  
City Area Code 972-73  
Local Phone Number 316-3251  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol PLTK  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   371,978,224
Entity Central Index Key 0001828016  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.24.2.u1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 710.3 $ 1,029.7
Short-term investments 390.1 0.0
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
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 (Note 8)
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
v3.24.2.u1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 1,600.0 1,600.0
Common stock, shares issued (in shares) 371.9 370.0
Common stock, shares outstanding (in shares) 371.9 370.0
Treasury stock (in shares) 51.8 51.8
v3.24.2.u1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
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 0.0 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 (in dollars per share) $ 0.23 $ 0.21 $ 0.38 $ 0.44
Net income per share attributable to common stockholders, diluted (in dollars per share) $ 0.23 $ 0.21 $ 0.38 $ 0.44
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) 371.4 365.9 370.9 365.3
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) 371.8 366.4 371.3 365.8
v3.24.2.u1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($)
shares in Millions, $ in Millions
Total
Share capital
Treasury stock
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (Accumulated deficit)
Beginning balance (in shares) at Dec. 31, 2022   363.6        
Beginning balance at Dec. 31, 2022 $ (568.6) $ 4.1 $ (603.5) $ 1,155.8 $ 17.6 $ (1,142.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 84.1         84.1
Stock-based compensation 29.8     29.8    
Issuance of shares upon vesting of RSUs and PSUs (in shares)   2.0        
Issuance of shares upon vesting of RSUs and PSUs (less than or equal) 0.0 $ 0.1 [1]   (0.1) [1]    
Income tax withholding related to vesting of restricted stock units and other (1.3)     (1.3)    
Other comprehensive income (loss) (4.7)       (4.7)  
Ending balance (in shares) at Mar. 31, 2023   365.6        
Ending balance at Mar. 31, 2023 (460.7) $ 4.1 (603.5) 1,184.3 12.9 (1,058.5)
Beginning balance (in shares) at Dec. 31, 2022   363.6        
Beginning balance at Dec. 31, 2022 (568.6) $ 4.1 (603.5) 1,155.8 17.6 (1,142.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 159.8          
Other comprehensive income (loss) 9.9          
Ending balance (in shares) at Jun. 30, 2023   366.3        
Ending balance at Jun. 30, 2023 (344.9) $ 4.1 (603.5) 1,209.8 27.5 (982.8)
Beginning balance (in shares) at Mar. 31, 2023   365.6        
Beginning balance at Mar. 31, 2023 (460.7) $ 4.1 (603.5) 1,184.3 12.9 (1,058.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 75.7         75.7
Stock-based compensation 26.1     26.1    
Issuance of shares upon vesting of RSUs and PSUs (in shares)   0.7        
Issuance of shares upon vesting of RSUs and PSUs (less than or equal) [1]   $ 0.1   (0.1)    
Income tax withholding related to vesting of restricted stock units and other (0.6)     (0.6)    
Other comprehensive income (loss) 14.6       14.6  
Ending balance (in shares) at Jun. 30, 2023   366.3        
Ending balance at Jun. 30, 2023 $ (344.9) $ 4.1 (603.5) 1,209.8 27.5 (982.8)
Beginning balance (in shares) at Dec. 31, 2023 370.0 370.0        
Beginning balance at Dec. 31, 2023 $ (221.5) $ 4.1 (603.5) 1,264.9 20.6 (907.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 53.0         53.0
Cash dividend declared (37.1)         (37.1)
Stock-based compensation 24.2     24.2    
Issuance of shares upon vesting of RSUs and PSUs (in shares)   1.0        
Issuance of shares upon vesting of RSUs and PSUs (less than or equal) 0.0 $ 0.1 [1]   (0.1) [1]    
Income tax withholding related to vesting of restricted stock units and other (0.7)     (0.7)    
Other comprehensive income (loss) 1.7       1.7  
Ending balance (in shares) at Mar. 31, 2024   371.0        
Ending balance at Mar. 31, 2024 $ (180.4) $ 4.1 (603.5) 1,288.4 22.3 (891.7)
Beginning balance (in shares) at Dec. 31, 2023 370.0 370.0        
Beginning balance at Dec. 31, 2023 $ (221.5) $ 4.1 (603.5) 1,264.9 20.6 (907.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 139.6          
Other comprehensive income (loss) $ (3.1)          
Ending balance (in shares) at Jun. 30, 2024 371.9 371.9        
Ending balance at Jun. 30, 2024 $ (112.9) $ 4.1 (603.5) 1,311.3 17.5 (842.3)
Beginning balance (in shares) at Mar. 31, 2024   371.0        
Beginning balance at Mar. 31, 2024 (180.4) $ 4.1 (603.5) 1,288.4 22.3 (891.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 86.6         86.6
Cash dividend declared (37.2)         (37.2)
Stock-based compensation 23.5     23.5    
Issuance of shares upon vesting of RSUs and PSUs (in shares)   0.9        
Issuance of shares upon vesting of RSUs and PSUs (less than or equal) 0.0 $ 0.1 [1]   (0.1) [1]    
Income tax withholding related to vesting of restricted stock units and other (0.6)     (0.6)    
Other comprehensive income (loss) $ (4.8)       (4.8)  
Ending balance (in shares) at Jun. 30, 2024 371.9 371.9        
Ending balance at Jun. 30, 2024 $ (112.9) $ 4.1 $ (603.5) $ 1,311.3 $ 17.5 $ (842.3)
[1] Represents an amount less than 0.1 or $0.1
v3.24.2.u1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (Parenthetical) - $ / shares
3 Months Ended
Apr. 05, 2024
Jun. 30, 2024
Mar. 31, 2024
Statement of Stockholders' Equity [Abstract]      
Cash dividend declared (in dollars per share) $ 0.10 $ 0.10 $ 0.10
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities    
Net income $ 139.6 $ 159.8
Adjustments to reconcile net income to net cash from operating activities:    
Depreciation 23.8 22.1
Amortization of intangible assets 54.1 55.5
Impairment charges 7.0 9.7
Stock-based compensation 46.6 54.5
Amortization of loan discount 3.7 3.4
Change in contingent consideration (13.4) 0.0
Change in deferred taxes, net (6.4) (7.8)
Loss from foreign currency 0.5 (3.1)
Non-cash lease expenses (income) (3.0) 0.0
Changes in operating assets and liabilities:     
Accounts receivable 10.6 (18.4)
Prepaid expenses and other current and non-current assets 8.4 16.2
Accounts payable  (34.3) (9.4)
Accrued expenses and other current and non-current liabilities (57.1) (55.0)
Net cash provided by 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) 0.0
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) 0.0
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) 0.0
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
Supplemental cash flow disclosures    
Cash paid for income taxes 62.9 90.8
Cash paid for interest 73.9 73.4
Cash received for interest 27.5 9.7
Non-cash financing and investing activities    
Accrued dividend 37.2 0.0
Right-of-use assets acquired under operating leases 3.4 13.1
Capitalization of stock-based compensation costs $ 1.1 $ 1.4
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of business and organization

Playtika Holding Corp. (“Playtika”) and its subsidiaries (together with Playtika, the “Company”) is one of the world’s leading developers of mobile games creating fun, innovative experiences that entertain and engage its users. It has built best-in-class live game operations services and proprietary technology tools to support its portfolio of games which enable it to drive strong user engagement and monetization. The Company’s games are free-to-play, and the Company seeks to provide novel, curated in-game content and offers to its users, at optimal points in their game journeys to drive user engagement and monetization.

Basis of presentation and consolidation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include Playtika and all subsidiaries in which the Company has a controlling financial interest. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where the Company has determined that it has significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2023 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, consisting of normal, recurring adjustments, and all intercompany balances and transactions have been eliminated in the consolidation. Certain amounts in the consolidated financial statements for the previous years have been reclassified to be consistent with current year presentation. These reclassifications had no effect on previously reported net income. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 26, 2024.

Use of estimates

The preparation of the interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Amendment to Stock Purchase Agreement

On September 14, 2023, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire all of the issued and outstanding share capital of G.S InnPlay Labs Ltd. (“InnPlay”) for an aggregate purchase price equal to (i) $80 million, subject to customary closing adjustments, and (ii) earnout payments of up to $220 million, the amounts of which will be based on certain revenue growth performance metrics of InnPlay during the two years following the closing of the transaction. On June 18, 2024, the Company and InnPlay signed the first amendment to the Purchase Agreement which reduces the maximum cap on the total earnout from $220 million to $170 million and adjusted certain of the associated underlying performance metrics. The Company recorded $16.2 million of income to general
and administrative expense during the quarter ended June 30, 2024 to adjust its recorded earnout liability to the current estimated fair value of the total amount to be paid under the earnout, as amended.

Concentration of credit risk and significant customers

Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and derivative contracts. The Company’s investment policy imposes certain maturity limits on the Company’s portfolio and restricts the permitted investments to the purchase of bank deposits and highly rated fixed income securities.

Apple, Facebook and Google are significant distribution, marketing, promotion and payment platforms for the Company's games. A significant portion of the Company’s revenues has been generated from players who accessed the Company's games through these platforms. Therefore, the Company's accounts receivable are derived mainly from sales through these three platforms. The Company performs ongoing credit evaluations of its customers.

The following table summarizes the major accounts receivable of the Company as a percentage of the total accounts receivable as of the dates indicated:
June 30,
2024
December 31,
2023
Apple58%56%
Google26%28%
Facebook4%4%

Accounts receivable are recorded at their transaction amounts and do not bear interest. The Company bases its allowance for credit losses on management's best estimate of the amount of probable credit losses in the Company's existing accounts receivable based on historical collection experience and current and expected future economic and market conditions.

Cash and cash equivalents and Short-term investments

Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less from the date of purchase and are stated at the lower of cost or market value. Cash equivalents include investments in term deposits, commercial papers and money market funds that can be redeemed immediately at the current net asset value.

Investments with maturities of more than three months but less than one year from the date of purchase are included in short-term investments. Such short-term investments include investments in term deposits and commercial papers and are stated at cost which approximates fair market value.

The Company classifies its debt securities as available-for-sale (“AFS”). AFS debt securities are carried at fair value, with unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses on sale of investments are included in Interest and other, net on the statements of comprehensive income and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in Interest and other, net.

Employee related benefits

Appreciation and retention plan

In August 2019, the Company adopted the Playtika Holding Corp. Retention Plan (the “2021-2024 Retention Plan”) in order to retain key employees and reward them for contributing to the success of the Company. Under the 2021-2024 Retention Plan, eligible employees may be granted retention units that let them receive their pro-rata portion of a retention pool of $25 million per year for each of the plan years, and may also be granted appreciation units, which allow the employee to
receive their pro-rata portion of an appreciation pool calculated as a specified percentage of Adjusted EBITDA for each of the plan years.

The value of each unit of the 2021-2024 Retention Plan has been amortized into compensation expense using the straight-line method, which will result in the recognition of compensation costs in the same years as the underlying EBITDA used in the plan measurement is earned.

The Company recognized compensation expenses in respect of retention bonus and appreciation unit awards under its appreciation and retention plans of $23.3 million and $29.1 million during the three months ended June 30, 2024 and 2023, respectively, and $46.2 million and $58.9 million during the six months ended June 30, 2024 and 2023, respectively.

Derivative instruments
The Company uses interest rate swap contracts to reduce its exposure to fluctuating interest rates associated with the Company’s variable rate debt, and to effectively increase the portion of debt upon which the Company pays a fixed interest rate. The Company’s interest rate swap agreements are designated as cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), involving the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt.

The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively. The Company performed a regression analysis at inception of the hedging relationship and at period end in which it compared the change in the fair value of the swap transaction and the change in fair value of a hypothetical interest rate swap having terms that identically match the terms of the debt's interest rate payments based on historical swap rates. The Company believes that the hedging instruments are expected to be highly effective at offsetting changes in the hedged transactions attributable to the risk being hedged. For each future reporting period, the Company will continue performing retrospective and prospective assessments of hedge effectiveness in a single regression analysis by updating the regression analysis that was prepared at the inception of the hedging relationship.

The Company uses foreign currency derivative contracts to reduce its exposure to fluctuating exchange rates between the United States dollar (as the Company’s functional currency) and certain expense lines denominated in Euros (“EUR”), Israeli Shekels (“ILS”), Polish Zloty (“PLN”) and Romanian Leu (“RON”). The Company’s derivative contracts are designated as cash flow hedges under ASC 815. The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively, and expects these hedges to remain highly effective at offsetting fluctuations in exchange rates through their respective maturity dates. See Note 6, Derivative Instruments, for additional discussion.

The fair value of derivative financial instruments is recognized as an asset or liability at each balance sheet date, with changes in fair value recorded in other comprehensive income on the consolidated statements of comprehensive income until the future underlying transactions occur. The fair value approximates the amount the Company would pay or receive if these contracts were settled at the respective valuation dates. The inputs used to measure the fair value of the Company’s interest rate swap agreements and foreign currency derivative contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820, Fair Value Measurement (“ASC 820”). See Note 7, Fair Value Measurements, for additional discussion.

Investment in unconsolidated entities

The Company holds certain equity investments in various unconsolidated entities that, based upon the structure of the investment, are not within the scope of equity investment accounting that would lead to the consolidation conclusions above. Instead, these investments fall within the scope of ASC 321, Investments - Equity Securities. As permitted within that guidance, the Company has elected to account for these investments at cost less impairment, adjusted for changes in fair value from observable transactions for identical or similar investments of the same issuer as of the respective transaction dates. During the six months ended June 30, 2024, the Company recorded an impairment of $7.0 million related to one of its
investments in an unconsolidated entity. No change to the carrying amounts were recorded in the six months ended June 30, 2023.

Net income per share attributable to common stockholders

For all periods presented herein, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Performance Stock Units (“PSUs”) are considered potentially dilutive as of the first day of the reporting period in which the underlying performance metric is achieved. In the event of a loss, diluted shares are not considered because of their anti-dilutive effect. The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period.
v3.24.2.u1
SHORT-TERM INVESTMENTS
6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
SHORT-TERM INVESTMENTS SHORT-TERM INVESTMENTS
Short-term investments at June 30, 2024 are as follows (in millions):

June 30, 2024
Amortized costAllowance for credit losses
Unrealized gains
Unrealized losses
Term deposits$132.8 $— $— $— 
Commercial papers257.4 — — (0.1)
Total short-term investments$390.2 $— $— $(0.1)
v3.24.2.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities at June 30, 2024 and December 31, 2023 were as follows (in millions):
June 30,
2024
December 31,
2023
Employees and related expenses$121.8 $162.5 
Accrued expenses83.2 93.9 
Media buy64.8 54.5 
Deferred revenues40.0 46.0 
Dividend payable37.2 — 
Tax accruals34.2 35.4 
Contingent consideration31.4 46.0 
Total accrued expenses and other current liabilities$412.6 $438.3
v3.24.2.u1
DEBT
6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
June 30, 2024December 31, 2023
(in millions, except interest rates)
Maturity
Interest
rate
Book value
Face value
Book value
Term Loan20288.210%$1,816.4 $1,843.0 $1,822.8 
Senior Notes20294.250%594.1 600.0 593.6 
Revolving Credit Facility2026n/a— — — 
Total debt2,410.5 2,443.0 2,416.4 
Less: Current portion of long-term debt(16.5)(23.8)(16.8)
Long-term debt$2,394.0 $2,419.2 $2,399.6 

Book value of debt in the table above is reported net of deferred financing costs and original issue discount of $32.5 million and $36.1 million at June 30, 2024 and December 31, 2023, respectively.

Credit Agreement

The Company has a $1.9 billion senior secured first lien term loan (the “Term Loan”) and a $600 million revolving credit facility (the “Revolving Credit Facility”) (together, the “Credit Agreement”), maturing on March 11, 2028 and March 11, 2026, respectively. The Term Loan requires quarterly principal payments equal to 0.25% of the original aggregate principal amount of the Term Loan with balance due at maturity.

The Revolving Credit Facility includes a maximum first-priority net senior secured leverage ratio financial maintenance covenant of 6.25 to 1.0. At June 30, 2024, the Company’s first-priority net senior secured leverage ratio was 0.96 to 1.0.

The Company was in compliance with its financial and other covenants under the Credit Agreement as of June 30, 2024.

The other significant terms and conditions of the Credit Agreement have not changed from what was disclosed in Note 12, Debt in our Annual Report on Form 10-K filed with the SEC on February 26, 2024.

Offering of 4.250% Senior Notes due 2029

Indenture

On March 11, 2021, the Company issued $600.0 million aggregate principal amount of its 4.250% senior notes due 2029 (the “Notes”) under an indenture, dated March 11, 2021 (the “Indenture”), among the Company, the subsidiary guarantors party thereto and Wilmington Trust, National Association, as trustee (the “Trustee”).

Maturity and Interest

The Notes mature on March 15, 2029. Interest on the Notes will accrue at a rate of 4.250% per annum. Interest on the Notes is payable semi-annually in cash in arrears on March 15 and September 15 of each year.

The significant terms and conditions of the Notes have not changed from what was disclosed in Note 12, Debt in our Annual Report on Form 10-K filed with the SEC on February 26, 2024.
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN
Overview of Stock Incentive Plan

On May 26, 2020, the Board of Directors of the Company approved the Playtika Holding Corp. 2020 Incentive Award Plan (the “Plan”).

As of June 30, 2024, a total of 47,954,177 shares of the Company’s common stock had been allocated to awards granted under the Plan and 15,447,480 shares remained available for future grants.

Cash Dividend

On April 5, 2024, the Board of Directors of the Company (“the Board”) paid a cash dividend of $0.10 per shares of the Company’s outstanding common stock. Additionally, the Board declared a cash dividend of $0.10 per share of the Company’s outstanding common stock, payable on July 5, 2024 to stockholders of record as of the close of business on June 21, 2024. The dividend amount of $37.2 million is recorded in accrued expenses and other current liabilities at June 30, 2024.

Stock Repurchase Program

On May 9, 2024, the Company announced that its Board of Directors authorized a stock repurchase program for up to $150 million of the Company’s common stock. Under the repurchase program, repurchases can be made using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion.

Stock Options

The following table summarizes the Company’s stock option activity during the six months ended June 30, 2024:

StockWeightedWeighted
OptionsAverageAverageIntrinsic
OutstandingRemainingExerciseValue
(in millions)Term (in years)Price(in millions)
Outstanding at January 1, 2024
1.7 7.6$17.72 
Granted— $— 
Exercised— 
Cancelled(0.3)$19.22 
Expired— $— 
Outstanding at June 30, 2024
1.4 7.2$17.40 $— 
Exercisable at June 30, 2024
0.9 7.0$18.89 $— 
The Company used the Black-Scholes option pricing model for determining the estimated fair value of stock-based compensation related to stock options. The table below summarizes the assumptions used for the options granted in the six months ended June 30, 2023. There were no options granted in the six months ended June 30, 2024.

Six months ended
June 30,
2023
Risk-free interest rate
3.34% - 3.79%
Expected dividend yield
Expected term in years6.1
Expected volatility
52.13% - 52.79%

RSUs

The following table summarizes the Company’s RSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
SharesGrant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
21.3 $12.24 
Granted
0.5 $7.59 
Vested
(2.0)$16.45 $15.5 
Cancelled
(1.9)$12.37 
Outstanding at June 30, 2024
17.9 $11.60 

PSUs

As of June 30, 2024, the Company estimated achievement of a target less than 100% for the PSUs associated with the 2024 and 2025 tranches, consistent with the Company’s current forecasted performance for 2024 and 2025.

The following table summarizes the Company’s PSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
Shares(1)
Grant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
2.2 $9.72 
Granted
— $— 
Vested
*$9.72 *
Cancelled
(0.7)$9.72 
Outstanding at June 30, 2024
1.5 $9.72 
________
(1)    The number of PSUs outstanding represent the total number of PSUs granted to each recipient eligible to vest if the Company meets its highest specified performance goals for the applicable period.

*    Represents an amount less than 0.1 or $0.1
Stock-Based Compensation

The following table summarizes stock-based compensation costs as reported by award type (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Stock options$0.9 $1.1 $1.7 $1.4 
RSUs24.2 26.9 50.1 54.0 
PSUs(1.6)(1.9)(4.1)0.5 
Total stock-based compensation costs$23.5 $26.1 $47.7 $55.9 

The following table summarizes stock-based compensation costs, net of amounts capitalized, as reported on the Company’s consolidated statement of comprehensive income (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Research and development expenses$7.8 $9.5 $15.9 $19.0 
Sales and marketing expenses1.6 2.4 3.4 4.8 
General and administrative expenses13.5 13.4 27.3 30.7 
Total stock-based compensation costs, net of amounts capitalized$22.9 $25.3 $46.6 $54.5 

During the three months ended June 30, 2024 and 2023, the Company capitalized $0.6 million and $0.8 million of stock-based compensation cost, respectively. During the six months ended June 30, 2024 and 2023, the Company capitalized $1.1 million and $1.4 million of stock-based compensation cost, respectively.
As of June 30, 2024, the Company’s total unrecognized stock-based compensation expenses related to stock options and RSUs was approximately $3.1 million and $177.8 million, respectively. There was no unrecognized expense for PSUs at June 30, 2024. The expense related to stock options and RSUs are expected to be recognized over a weighted average period of 1.4 years and 2.8 years, respectively.
v3.24.2.u1
DERIVATIVE INSTRUMENTS
6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
Interest Rate Swap Agreements

In March 2021, the Company entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution as the counterparty to reduce the Company’s counterparty risk. The initial terms of each swap required the Company to pay a fixed interest rate of 0.9275% in exchange for receiving one-month LIBOR. In June 2023 these two interest rate swap agreements were amended so that effective July 31, 2023, the Company will pay a fixed interest rate of 0.85% in exchange for receiving one-month Term SOFR. The amendment did not impact the hedge effectiveness.

The interest rate swap agreements settle monthly commencing in April 2021 through their termination dates on April 30, 2026. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.

In January 2023, the Company entered into two interest rate swap agreements, each with a notional value of $250 million. Each of these swap agreements is with a different financial institution, and each swap requires the Company to pay a fixed interest rate of 3.435% in exchange for receiving one-month LIBOR for six months and one-month Term SOFR afterwards. The interest rate swap agreements settle monthly commencing in February 2023 through their termination dates on February 28, 2028. The estimated fair value of the Company’s interest rate swap agreements is derived from a discounted cash flow analysis.
The aggregate fair value of the Company’s interest rate swap agreements was an asset of $45.5 million as of June 30, 2024 and was recorded in prepaid expenses and other current assets and other non-current assets in the accompanying consolidated balance sheets based upon the timing of the underlying expected cash flows.

Foreign currency hedge agreements

At June 30, 2024, the Company had outstanding derivative contracts to purchase certain foreign currencies, including EUR, ILS, RON, and PLN at future dates. The amount of future salary expenses the Company had hedged was approximately $207.9 million, and all contracts are expected to mature during the upcoming 12 months. The aggregate fair value of the Company’s derivative contracts was a net liability of $2.3 million as of June 30, 2024 and was recorded in prepaid expenses and other current assets and accrued expenses and other current liabilities in the accompanying consolidated balance sheets.

The following table summarizes the volume of derivative instrument activity (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Derivative instruments - foreign currency derivative contracts$65.4 $54.0 $105.4 $92.7 
Derivative instruments - interest rate swaps— — — 500.0 
Derivative instruments - others (non-hedging)— (0.3)— 1.6 
v3.24.2.u1
FAIR VALUE MEASUREMENTS
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Company accounts for fair value in accordance with ASC 820. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a three-tier hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying value of accounts receivable and payables and the Company's cash and cash equivalents, short-term investments and restricted cash approximates fair value due to the short time to expected payment or receipt of cash.
The following table summarizes the fair value measurement of the Company’s long-term debt (in millions):
June 30, 2024
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,843.0 $1,843.0 Level 2
Senior Notes600.0 522.0 Level 2
Total debt$2,443.0 $2,365.0 

December 31, 2023
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,852.5 $1,847.9 Level 2
Senior Notes600.0 525.8 Level 2
Total debt$2,452.5 $2,373.7 

The estimated fair value of the Company’s term loan is based upon the prices at which the Company’s debt traded in the days immediately preceding the balance sheet date. As the trading volume of the Company’s debt is low relative to the overall debt balance, the Company does not believe that the associated transactions represent an active market, and therefore this indication of value represents a level 2 fair value input.
The following table sets forth the assets and liabilities measured at fair value on a recurring basis in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023 (in millions):
Fair Value at
Fair Value HierarchyJune 30, 2024December 31, 2023
Cash equivalents
Money market fundsLevel 1$346.2 $524.4 
Term depositsLevel 166.2 290.3 
Commercial papersLevel 2129.6 104.8 
Short-term investments
Term depositsLevel 1132.8 — 
Commercial papersLevel 2257.3 — 
Prepaid expenses and other current assets
Derivative instruments - interest rate swapsLevel 2$27.8 $25.3 
Derivative instruments - foreign currency derivative contractsLevel 20.9 4.3 
Other non-current assets
Derivative instruments - interest rate swapsLevel 2$17.7 $15.2 
Accrued expenses and other current liabilities
Derivative instruments - foreign currency derivative contractsLevel 2$3.2 $0.9 
Other long-term liabilities, including employee related benefits
Derivative instruments - interest rate swapsLevel 2$— $4.4 

The change in fair value of contingent consideration payable was valued using significant unobservable inputs (Level 3), was included in the general and administrative expenses in the Company’s consolidated statements of comprehensive income and consisted of the following (in millions):

Balance as of January 1, 2024$66.8 
Fair value adjustments based upon post-acquisition performance(13.4)
Balance as of June 30, 2024(1)
$53.4 
__________
(1)    Amount comprised of $51.0 million and $2.4 million for InnPlay and Youda Games acquisitions, respectively.

The carrying values of the Company’s cash equivalents and short-term investments approximate fair value because of the short duration of these financial instruments.

The Company estimates the fair value of interest rate swap contracts by discounting the future cash flows of both the fixed rate and variable rate interest payments based on market yield curves. The inputs used to measure the fair value of the Company’s interest rate swap contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820. The inputs used to measure the fair value of the Company’s foreign currency contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820.

The Company estimated the fair value of its contingent consideration liabilities using a Monte Carlo simulation to model components of cash flow analyses. These fair value measurements are based on significant inputs not observable in the market and thus represent Level 3 measurements as defined in ASC 820. The extent to which the actual results differ from
assumptions made within the Monte Carlo simulation cash flow analysis will result in adjustments to this liability in future periods.
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
In November 2013, the Company’s subsidiary, Playtika, Ltd., sent an initial demand letter to Enigmatus s.r.o., a game developer in the Czech Republic, which owns various U.S. trademark registrations that resemble the Company’s Sloto-formative trademark names, demanding that it cease use of the trademark Slotopoly. In response, Enigmatus s.r.o. asserted that it was the owner of the Sloto-formative trademarks and denied that its game title infringed upon the Company’s trademarks. Enigmatus s.r.o. applied to register one of the Company’s trademarks in the United Kingdom and European Union, and the Company successfully opposed its applications. In December 2016, Enigmatus s.r.o., filed a trademark infringement lawsuit, Enigmatus, s.r.o. v. Playtika LTD and Caesars Interactive Entertainment, Inc., against Playtika, Ltd. and Caesars Interactive Entertainment LLC in the Federal Court of Canada asserting that the Company’s use of the Slotomania trademarks violates its proprietary and trademark rights. The plaintiff sought injunctive relief and monetary damages. On May 17, 2024, the Company’s motion for summary trial was granted. However, the plaintiffs subsequently filed a notice of appeal. The Company has defended this case vigorously and will continue to do so. As the appeals process is in the preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On November 23, 2021, the Company, its directors and certain of its officers were named in a putative class action lawsuit filed in the United States District Court for the Eastern District of New York (Bar-Asher v. Playtika Holding Corp. et al.). The complaint is allegedly brought on behalf of a class of purchasers of the Company’s securities between January 15, 2021 and November 2, 2021, and alleges violations of federal securities laws arising out of alleged misstatements or omissions by the defendants during the alleged class period. On March 10, 2022, the court appointed LBMotion Ltd as lead plaintiff, and the plaintiff filed an amended complaint on May 6, 2022. The amended complaint alleges violations of Section 11 and 15 of the Securities Act of 1933 and seeks, among other things, damages and attorneys’ fees and costs on behalf of the putative class. The amended complaint also added the companies that served as underwriters for the Company’s IPO as defendants in the lawsuit. On September 15, 2022, in accordance with local rules of the Court, the Company and other defendants in the case filed a letter notifying the Court of defendants’ service upon plaintiffs of, among other things, a notice of motion to dismiss plaintiffs’ amended complaint and a memorandum of law in support of the defendants’ motion to dismiss plaintiffs’ amended complaint. On November 30, 2022, the Company filed with the Court a motion to dismiss. The Company’s motion to dismiss was granted with prejudice on March 18, 2024. However, on April 15, the plaintiffs filed a notice of appeal. As the appeals process is in the preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company has defended this case vigorously and will continue to do so.

On November 4, 2022, the Company and certain of its directors were named in a derivative action lawsuit filed in the United States District Court for the Eastern District of New York (Bushansky v. Antokol., et al.). The complaint was brought on behalf of the Company by a putative stockholder alleging that the named directors were negligent in their oversight of the preparation of the Company’s Proxy Statement in alleged violation of federal securities laws and that those directors breached their fiduciary duties upon related allegations. The complaint also asserts claims for contribution and indemnification, and aiding and abetting. The complaint seeks, among other things, damages, disgorgement and restitution by the director defendants, and attorneys’ fees and costs. Based upon an agreement of plaintiff, the Company, and the other defendants, on February 13, 2023, the Court stayed this action until the resolution of the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. When the motion to dismiss in the class action case of Bar-Asher v. Playtika Holding Corp. was granted as discussed above, this action was administratively closed. The Company does not expect this action to move forward until after the appeal of the class action case of Bar-Asher v. Playtika Holding Corp. has been decided. As this stage, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to vigorously defend this case.

On May 17, 2022, Guy David Ben Yosef filed a Motion for Approval of a class action lawsuit in district court in Tel Aviv-Jaffa Israel against Playtika Group Israel Ltd. (“PGI”), on behalf of all of PGI’s customers who made game token purchases in Israel as part of games marketed by PGI during the seven years preceding the filing of the motion and for all subsequent customers of such games who purchase tokens until the resolution of the claim. The Motion alleges that certain of the
Company’s slot, poker and solitaire-themed games, including Slotomania, Caesars Slots, Solitaire Grand Harvest, House of Fun and Poker Heat, constitute illegal gambling and are prohibited under Israeli law and are misleading under Israeli consumer protection laws and alleges unjust enrichment. The Motion asserts damages of NIS 50 million. On January 12, 2023, PGI filed its response to the Motion for Approval. On March 5, 2023, the applicant submitted his reply to PGI’s response. A pre-trial hearing was held on May 4, 2023. The parties agreed to appoint a mediator to try and resolve the dispute. The first mediation meeting was held on August 16, 2023 and the second mediation meeting was held on January 7, 2024. The parties have agreed upon a settlement which is currently pending review by certain third parties and the expected range of loss is not material to the Company’s financial statements as a whole. If a mediated resolution is not reached the Company will continue defending this case vigorously.

On April 10, 2023, Playtika Holding UK II Limited, the Company’s controlling shareholder, and certain officers of the Company were sued (Kormos v Playtika Holding UK II Limited, et al.) in the Delaware Chancery Court. The lawsuit alleges generally that the defendants breached fiduciary duties owed to the Company and its stockholders with respect to the controlling shareholder’s indication of an interest in selling some or all of its shares, and the resulting strategic review process and self-tender offer. On August 18, 2023, defendants filed with the Court motions to dismiss the claims. A hearing on the motions to dismiss was held on November 21, 2023. On January 18, 2024, the court denied Playtika Holding UK II Limited’s motion to dismiss in an oral ruling. The court issued a written opinion on May 3, 2024 granting the motion to dismiss the claims against the Company’s officers. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows.

On June 7, 2024, the Company received a demand letter from counsel for Scott G. Kormos, one of the plaintiffs in the litigation matter described in the immediately preceding paragraph, pursuant to Section 220 of the Delaware General Corporation Law (“DGCL”), seeking disclosure of certain of the Company’s books and records. The Company has responded to the demand, stating its belief that the demand letter fails to fully comply with the requirements of Section 220 of the DGCL. However, in the interest of resolution and while preserving all rights, the Company has engaged in negotiations with Mr. Kormos’ counsel regarding the production of materials in relation to the demand.

On November 13, 2023, plaintiff Gina v. Burt filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Coffee County, Tennessee, alleging that the Company’s social casino-themed games are unlawful gambling under Tennessee law. The lawsuit seeks to recover all amounts paid by Tennessee residents to the Company in connection with its games during the period beginning one year before the filing of the lawsuit until the case is resolved but excluding any residents who spent $75,000 or more during such time period. After the Company removed the case to the U.S. District Court for the Eastern District of Tennessee, plaintiff filed a motion to remand the case back to the Coffee County Circuit Court which the Company opposed. The Company also filed a motion to dismiss and a motion to compel arbitration. These motions have been briefed and are currently pending. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.

On March 8, 2023, plaintiff Gayla Hamilton Mills filed a lawsuit against the Company and its subsidiary, Playtika Ltd., in the Circuit Court of Franklin County, Alabama, alleging that the Company’s casino-themed social games are unlawful gambling under Alabama law. The lawsuit seeks to recover all amounts paid by Alabama residents to the Company in connection with its games during the period beginning one year before the filing of the lawsuit until the case is resolved. After the Company removed the case to the U.S. District Court for the Northern District of Alabama, plaintiff dismissed the complaint and filed a very similar new complaint in the Circuit Court of Franklin County, Alabama on August 25, 2023. The new complaint asserted the same cause of action and bases for relief, but limited the requested recovery to the amounts paid to the Company in connection with its games only by those Alabama residents who spent less than $75,000 during the one year before the filing of the lawsuit until the case is resolved. The Company timely removed the new complaint to the same U.S. district court on September 28, 2023. On October 20, 2023, the plaintiff filed a motion to remand the case back to the Franklin County Circuit Court which the Company opposed. A hearing on the motion to remand was held on March 20, 2024 and the parties are awaiting a ruling. As the case is in preliminary stages, the Company cannot estimate what impact, if any, the litigation may have on its results of operations, financial condition or cash flows. The Company intends to defend this case vigorously.
On February 27, 2023, the company received a deficit notice from the Ben Gurion Airport Customs House concerning the purchase of a private aircraft. The deficit notice claims that the company's acquisition of the aircraft is an import into Israel, and, as a result, it was obliged to pay purchase tax and VAT for the acquisition. The company disputes that any tax or VAT is owed. On July 26, 2023, the Customs House's definitive response was received, with the deficit notice still intact. The current claimed amount of the deficit notice is approximately $3.6 million. The Company paid the deficit notice under protest and filed a claim with the district court on December 12, 2023. The Customs House submitted its statement of defense on April 17, 2024 and the Company submitted its response to the statement of defense on June 16. A pre-trial meeting has been scheduled with the court for November 14, 2024. The Company intends to pursue this case vigorously.

On June 1, 2024, the Company received pre-arbitration notices from a law firm purporting to represent 5,264 claimants who have played the Company’s games and intend to file arbitration demands alleging that the Company’s games are unlawful or that they otherwise have suffered harm for which recovery is available. On July 26, 2024, the law firm filed arbitration demands on behalf of 4,549 claimants. As of the date hereof, the Company lacks adequate information to assess the nature or validity of the claims. As such, the Company cannot estimate what impact, if any, these arbitration demands may have on its results of operations, financial condition or cash flows. The Company intends to defend these claims vigorously.
v3.24.2.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table provides information about disaggregated revenue by geographic location of the Company’s players and type of platform (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Geographic location
USA$425.0 $452.9 $865.2 $914.2 
EMEA115.8 102.1 237.4 207.1 
APAC42.5 44.8 86.7 90.9 
Other43.7 43.0 88.9 86.8 
Total$627.0 $642.8 $1,278.2 $1,299.0 

Revenues through third-party platforms and through the Company’s own direct-to-consumer platforms were as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Third-party platforms$453.3 $477.5 $933.0 $982.2 
Direct-to-consumer platforms173.7 165.3 345.2 316.8 
Total revenues$627.0 $642.8 $1,278.2 $1,299.0 
Contract balances

Payments from players for virtual items are collected by platform providers or payment processors and remitted to the Company (net of the platform or clearing fees) generally within 30 days after the player transaction. The Company’s right to receive the payments collected by the platform providers or payment processors is recorded as an accounts receivable as the right to receive payment is unconditional. Deferred revenues, which represent a contract liability, represent mostly unrecognized fees billed for virtual items which have not yet been consumed at the balance sheet date. Platform fees paid to platform providers or payment processors and associated with deferred revenues represent a contract asset.
Balances of the Company’s contract assets and liabilities are as follows (in millions):
June 30,
2024
December 31,
2023
Accounts receivable$160.0 $171.5 
Contract assets (1)
10.9 12.5 
Contract liabilities (2)
40.0 46.0 
_______
(1)    Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)    Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets.

During the three and six months ended June 30, 2024, the Company recognized $10.3 million and $33.7 million, respectively, of its contract liabilities that were outstanding as of December 31, 2023.

Unsatisfied performance obligations

Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.
v3.24.2.u1
SEGMENT INFORMATION
6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company operates its business as one operating segment and one reportable segment.

The Company’s long-lived assets, net, by country of domicile are as follows (in millions):
June 30,
2024
December 31,
2023
Israel$86.4 $94.0 
USA64.0 64.8 
Ukraine18.6 21.8 
Other37.2 39.6 
Total long-lived assets, net$206.2 $220.2 
v3.24.2.u1
INTEREST AND OTHER, NET
6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
INTEREST AND OTHER, NET INTEREST AND OTHER, NET
Interest and other, net are as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest expense$38.9 $35.8 $77.9 $73.8 
Interest income(13.7)(10.3)(26.7)(18.1)
Foreign currency translation differences, net(4.8)(2.4)(7.6)(4.2)
Other— — — 0.2 
Total interest and other, net$20.4 $23.1 $43.6 $51.7 
v3.24.2.u1
INCOME TAXES
6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Three months ended
June 30,
Six months ended
June 30,
(in millions, except tax rate)2024202320242023
Income before income taxes$120.3 $116.1 $195.2 $239.9 
Provision for income taxes$33.7 $40.4 $55.6 $80.1 
Effective tax rate28.0 %34.8 %28.5 %33.4 %

The effective tax rates were determined using a worldwide estimated annual effective tax rate and took discrete items into consideration. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2024 was primarily due to the inclusion of Global Intangible Low-Taxed Income and non-deductible stock-based compensation expense, partially offset by a non-recurring favorable impact of reversal of accruals related to undistributed earnings. The difference between the effective tax rate and the 21% U.S. federal statutory rate for the six months ended June 30, 2023 was primarily due to tax provisions that do not meet the more likely than not standard and the inclusion of Global Intangible Low-Taxed Income.
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables show a summary of changes in accumulated other comprehensive income (loss), net of tax, by component for the three and six months ended June 30, 2024 and 2023 (in millions):

Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2024$(10.0)$27.8 $2.8 $20.6 
Other comprehensive income (loss) before reclassifications(4.0)14.5 (2.5)8.0 
Amounts reclassified from accumulated other comprehensive income (loss)— (6.2)(0.1)(6.3)
Balance as of March 31, 2024(14.0)36.1 0.2 22.3 
Other comprehensive income (loss) before reclassifications(1.5)5.1 (3.5)0.1 
Amounts reclassified from accumulated other comprehensive income— (6.3)1.4 (4.9)
Balance as of June 30, 2024$(15.5)$34.9 $(1.9)$17.5 
                                                                                                                                                    
Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2023$(15.6)$37.7 $(4.5)$17.6 
Other comprehensive income (loss) before reclassifications3.1 (4.0)(2.0)(2.9)
Amounts reclassified from accumulated other comprehensive income (loss)— (4.2)2.4 (1.8)
Balance as of March 31, 2023(12.5)29.5 (4.1)12.9 
Other comprehensive income (loss) before reclassifications(0.2)20.5 (2.4)17.9 
Amounts reclassified from accumulated other comprehensive income— (5.5)2.2 (3.3)
Balance as of June 30, 2023$(12.7)$44.5 $(4.3)$27.5 

The amounts in the summary of changes in accumulated other comprehensive income (loss) tables, above, are net of tax expense/(benefits) as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest rate swaps$(0.3)$4.5 $2.2 $2.0 
Foreign currency derivative contracts(0.4)0.1 (0.9)— 

Amounts reclassified from accumulated other comprehensive income for interest rate swaps and foreign currency derivative contracts were reclassified to interest expense and operating expenses, respectively, in the Company’s consolidated statements of comprehensive income during the three and six months ended June 30, 2024 and 2023.
v3.24.2.u1
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in millions, except per share data):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Numerator:
Net income$86.6 $75.7 $139.6 $159.8 
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders, basic371.4 365.9 370.9 365.3 
Stock-based compensation awards0.4 0.5 0.3 0.5 
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted371.8 366.4 371.3 365.8 
Net income per share, basic$0.23 $0.21 $0.38 $0.44 
Net income per share, diluted$0.23 $0.21 $0.38 $0.44 

The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period. The following outstanding employee equity
awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Stock options1.5 2.1 1.6 2.6 
RSUs15.0 10.9 18.8 12.2 
Total16.5 13.0 20.4 14.8 
                                                                                                                        
In addition, 1.5 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2024 and 2.2 million PSUs were excluded from the calculation of diluted net income per share for each of the three and six months ended June 30, 2023, because the minimum performance measures were not yet met.
v3.24.2.u1
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
The Company performed a review for subsequent events through the date of these financial statements. No material items were noted for disclosure.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure            
Net income $ 86.6 $ 53.0 $ 75.7 $ 84.1 $ 139.6 $ 159.8
v3.24.2.u1
Insider Trading Arrangements
3 Months Ended
Jun. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Description of business and organization
Description of business and organization

Playtika Holding Corp. (“Playtika”) and its subsidiaries (together with Playtika, the “Company”) is one of the world’s leading developers of mobile games creating fun, innovative experiences that entertain and engage its users. It has built best-in-class live game operations services and proprietary technology tools to support its portfolio of games which enable it to drive strong user engagement and monetization. The Company’s games are free-to-play, and the Company seeks to provide novel, curated in-game content and offers to its users, at optimal points in their game journeys to drive user engagement and monetization.
Basis of presentation and consolidation
Basis of presentation and consolidation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include Playtika and all subsidiaries in which the Company has a controlling financial interest. Control generally equates to ownership percentage, whereby (i) affiliates that are more than 50% owned are consolidated; (ii) investments in affiliates of 50% or less but greater than 20% are generally accounted for using the equity method where the Company has determined that it has significant influence over the entities; and (iii) investments in affiliates of 20% or less are generally accounted for at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

The significant accounting policies referenced in the annual consolidated financial statements of the Company as of December 31, 2023 have been applied consistently in these unaudited interim consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been recorded within the accompanying financial statements, consisting of normal, recurring adjustments, and all intercompany balances and transactions have been eliminated in the consolidation. Certain amounts in the consolidated financial statements for the previous years have been reclassified to be consistent with current year presentation. These reclassifications had no effect on previously reported net income. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 26, 2024.
Use of estimates
Use of estimates
The preparation of the interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Concentration of credit risk and significant customers
Concentration of credit risk and significant customers

Financial instruments, which potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, short-term investments, restricted cash, accounts receivable and derivative contracts. The Company’s investment policy imposes certain maturity limits on the Company’s portfolio and restricts the permitted investments to the purchase of bank deposits and highly rated fixed income securities.

Apple, Facebook and Google are significant distribution, marketing, promotion and payment platforms for the Company's games. A significant portion of the Company’s revenues has been generated from players who accessed the Company's games through these platforms. Therefore, the Company's accounts receivable are derived mainly from sales through these three platforms. The Company performs ongoing credit evaluations of its customers.
Accounts receivable
Accounts receivable are recorded at their transaction amounts and do not bear interest. The Company bases its allowance for credit losses on management's best estimate of the amount of probable credit losses in the Company's existing accounts receivable based on historical collection experience and current and expected future economic and market conditions.
Cash and cash equivalents
Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less from the date of purchase and are stated at the lower of cost or market value. Cash equivalents include investments in term deposits, commercial papers and money market funds that can be redeemed immediately at the current net asset value.
Investments
Investments with maturities of more than three months but less than one year from the date of purchase are included in short-term investments. Such short-term investments include investments in term deposits and commercial papers and are stated at cost which approximates fair market value.

The Company classifies its debt securities as available-for-sale (“AFS”). AFS debt securities are carried at fair value, with unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in stockholders’ equity. Realized gains and losses on sale of investments are included in Interest and other, net on the statements of comprehensive income and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in Interest and other, net.
Investment in unconsolidated entities

The Company holds certain equity investments in various unconsolidated entities that, based upon the structure of the investment, are not within the scope of equity investment accounting that would lead to the consolidation conclusions above. Instead, these investments fall within the scope of ASC 321, Investments - Equity Securities. As permitted within that guidance, the Company has elected to account for these investments at cost less impairment, adjusted for changes in fair value from observable transactions for identical or similar investments of the same issuer as of the respective transaction dates. During the six months ended June 30, 2024, the Company recorded an impairment of $7.0 million related to one of its
investments in an unconsolidated entity. No change to the carrying amounts were recorded in the six months ended June 30, 2023.
Employee related benefits
Employee related benefits

Appreciation and retention plan

In August 2019, the Company adopted the Playtika Holding Corp. Retention Plan (the “2021-2024 Retention Plan”) in order to retain key employees and reward them for contributing to the success of the Company. Under the 2021-2024 Retention Plan, eligible employees may be granted retention units that let them receive their pro-rata portion of a retention pool of $25 million per year for each of the plan years, and may also be granted appreciation units, which allow the employee to
receive their pro-rata portion of an appreciation pool calculated as a specified percentage of Adjusted EBITDA for each of the plan years.
The value of each unit of the 2021-2024 Retention Plan has been amortized into compensation expense using the straight-line method, which will result in the recognition of compensation costs in the same years as the underlying EBITDA used in the plan measurement is earned.
Derivative instruments
Derivative instruments
The Company uses interest rate swap contracts to reduce its exposure to fluctuating interest rates associated with the Company’s variable rate debt, and to effectively increase the portion of debt upon which the Company pays a fixed interest rate. The Company’s interest rate swap agreements are designated as cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging (“ASC 815”), involving the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional amount. These hedges are highly effective in offsetting changes in the Company’s future expected cash flows due to the fluctuation of the Company’s variable rate debt.

The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively. The Company performed a regression analysis at inception of the hedging relationship and at period end in which it compared the change in the fair value of the swap transaction and the change in fair value of a hypothetical interest rate swap having terms that identically match the terms of the debt's interest rate payments based on historical swap rates. The Company believes that the hedging instruments are expected to be highly effective at offsetting changes in the hedged transactions attributable to the risk being hedged. For each future reporting period, the Company will continue performing retrospective and prospective assessments of hedge effectiveness in a single regression analysis by updating the regression analysis that was prepared at the inception of the hedging relationship.

The Company uses foreign currency derivative contracts to reduce its exposure to fluctuating exchange rates between the United States dollar (as the Company’s functional currency) and certain expense lines denominated in Euros (“EUR”), Israeli Shekels (“ILS”), Polish Zloty (“PLN”) and Romanian Leu (“RON”). The Company’s derivative contracts are designated as cash flow hedges under ASC 815. The Company monitors the effectiveness of its hedges on a quarterly basis, both qualitatively and quantitatively, and expects these hedges to remain highly effective at offsetting fluctuations in exchange rates through their respective maturity dates. See Note 6, Derivative Instruments, for additional discussion.
The fair value of derivative financial instruments is recognized as an asset or liability at each balance sheet date, with changes in fair value recorded in other comprehensive income on the consolidated statements of comprehensive income until the future underlying transactions occur. The fair value approximates the amount the Company would pay or receive if these contracts were settled at the respective valuation dates. The inputs used to measure the fair value of the Company’s interest rate swap agreements and foreign currency derivative contracts are categorized as Level 2 in the fair value hierarchy as established by ASC 820, Fair Value Measurement (“ASC 820”).
Net income per share attributable to common stockholders
Net income per share attributable to common stockholders

For all periods presented herein, basic net income per share is calculated by dividing net income by the weighted-average common shares outstanding. Diluted net income per share reflects the effect of all potentially dilutive common shares outstanding by dividing net income by the weighted-average of all common and potentially dilutive shares outstanding. Performance Stock Units (“PSUs”) are considered potentially dilutive as of the first day of the reporting period in which the underlying performance metric is achieved. In the event of a loss, diluted shares are not considered because of their anti-dilutive effect. The Company uses the treasury stock method on a grant-by-grant basis as the method for determining the dilutive effect of options, RSUs and PSUs. Under this method, it is assumed that the hypothetical proceeds received upon settlement are used to repurchase common shares at the average market price during the period.
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Schedule of Major Accounts Receivable
The following table summarizes the major accounts receivable of the Company as a percentage of the total accounts receivable as of the dates indicated:
June 30,
2024
December 31,
2023
Apple58%56%
Google26%28%
Facebook4%4%
v3.24.2.u1
SHORT-TERM INVESTMENTS (Tables)
6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Short-Term Investments
Short-term investments at June 30, 2024 are as follows (in millions):

June 30, 2024
Amortized costAllowance for credit losses
Unrealized gains
Unrealized losses
Term deposits$132.8 $— $— $— 
Commercial papers257.4 — — (0.1)
Total short-term investments$390.2 $— $— $(0.1)
v3.24.2.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities at June 30, 2024 and December 31, 2023 were as follows (in millions):
June 30,
2024
December 31,
2023
Employees and related expenses$121.8 $162.5 
Accrued expenses83.2 93.9 
Media buy64.8 54.5 
Deferred revenues40.0 46.0 
Dividend payable37.2 — 
Tax accruals34.2 35.4 
Contingent consideration31.4 46.0 
Total accrued expenses and other current liabilities$412.6 $438.3
v3.24.2.u1
DEBT (Tables)
6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
June 30, 2024December 31, 2023
(in millions, except interest rates)
Maturity
Interest
rate
Book value
Face value
Book value
Term Loan20288.210%$1,816.4 $1,843.0 $1,822.8 
Senior Notes20294.250%594.1 600.0 593.6 
Revolving Credit Facility2026n/a— — — 
Total debt2,410.5 2,443.0 2,416.4 
Less: Current portion of long-term debt(16.5)(23.8)(16.8)
Long-term debt$2,394.0 $2,419.2 $2,399.6 
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN (Tables)
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
The following table summarizes the Company’s stock option activity during the six months ended June 30, 2024:

StockWeightedWeighted
OptionsAverageAverageIntrinsic
OutstandingRemainingExerciseValue
(in millions)Term (in years)Price(in millions)
Outstanding at January 1, 2024
1.7 7.6$17.72 
Granted— $— 
Exercised— 
Cancelled(0.3)$19.22 
Expired— $— 
Outstanding at June 30, 2024
1.4 7.2$17.40 $— 
Exercisable at June 30, 2024
0.9 7.0$18.89 $— 
Schedule of Assumptions Used for the Options Granted The table below summarizes the assumptions used for the options granted in the six months ended June 30, 2023. There were no options granted in the six months ended June 30, 2024.
Six months ended
June 30,
2023
Risk-free interest rate
3.34% - 3.79%
Expected dividend yield
Expected term in years6.1
Expected volatility
52.13% - 52.79%
Schedule of Company’s RSU Activity
The following table summarizes the Company’s RSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
SharesGrant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
21.3 $12.24 
Granted
0.5 $7.59 
Vested
(2.0)$16.45 $15.5 
Cancelled
(1.9)$12.37 
Outstanding at June 30, 2024
17.9 $11.60 
Schedule of Company’s PSU Activity
The following table summarizes the Company’s PSU activity during the six months ended June 30, 2024:
WeightedTotal Fair
AverageValue of
Shares(1)
Grant DateShares Vested
(in millions)Fair Value(in millions)
Outstanding at January 1, 2024
2.2 $9.72 
Granted
— $— 
Vested
*$9.72 *
Cancelled
(0.7)$9.72 
Outstanding at June 30, 2024
1.5 $9.72 
________
(1)    The number of PSUs outstanding represent the total number of PSUs granted to each recipient eligible to vest if the Company meets its highest specified performance goals for the applicable period.

*    Represents an amount less than 0.1 or $0.1
Schedule of Stock Based Compensation
The following table summarizes stock-based compensation costs as reported by award type (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Stock options$0.9 $1.1 $1.7 $1.4 
RSUs24.2 26.9 50.1 54.0 
PSUs(1.6)(1.9)(4.1)0.5 
Total stock-based compensation costs$23.5 $26.1 $47.7 $55.9 
Schedule of Stock Based Compensation, Net of Capitalized, Amount
The following table summarizes stock-based compensation costs, net of amounts capitalized, as reported on the Company’s consolidated statement of comprehensive income (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Research and development expenses$7.8 $9.5 $15.9 $19.0 
Sales and marketing expenses1.6 2.4 3.4 4.8 
General and administrative expenses13.5 13.4 27.3 30.7 
Total stock-based compensation costs, net of amounts capitalized$22.9 $25.3 $46.6 $54.5 
v3.24.2.u1
DERIVATIVE INSTRUMENTS (Tables)
6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instrument Activity
The following table summarizes the volume of derivative instrument activity (in millions):
Three months ended June 30,Six months ended June 30,
2024202320242023
Derivative instruments - foreign currency derivative contracts$65.4 $54.0 $105.4 $92.7 
Derivative instruments - interest rate swaps— — — 500.0 
Derivative instruments - others (non-hedging)— (0.3)— 1.6 
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurement of the Long-term Debt
The following table summarizes the fair value measurement of the Company’s long-term debt (in millions):
June 30, 2024
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,843.0 $1,843.0 Level 2
Senior Notes600.0 522.0 Level 2
Total debt$2,443.0 $2,365.0 

December 31, 2023
Face ValueFair ValueFair Value Hierarchy
Term Loan$1,852.5 $1,847.9 Level 2
Senior Notes600.0 525.8 Level 2
Total debt$2,452.5 $2,373.7 
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table sets forth the assets and liabilities measured at fair value on a recurring basis in the Company’s consolidated balance sheets at June 30, 2024 and December 31, 2023 (in millions):
Fair Value at
Fair Value HierarchyJune 30, 2024December 31, 2023
Cash equivalents
Money market fundsLevel 1$346.2 $524.4 
Term depositsLevel 166.2 290.3 
Commercial papersLevel 2129.6 104.8 
Short-term investments
Term depositsLevel 1132.8 — 
Commercial papersLevel 2257.3 — 
Prepaid expenses and other current assets
Derivative instruments - interest rate swapsLevel 2$27.8 $25.3 
Derivative instruments - foreign currency derivative contractsLevel 20.9 4.3 
Other non-current assets
Derivative instruments - interest rate swapsLevel 2$17.7 $15.2 
Accrued expenses and other current liabilities
Derivative instruments - foreign currency derivative contractsLevel 2$3.2 $0.9 
Other long-term liabilities, including employee related benefits
Derivative instruments - interest rate swapsLevel 2$— $4.4 
Schedule of Fair Value of Contingent Consideration Payable
The change in fair value of contingent consideration payable was valued using significant unobservable inputs (Level 3), was included in the general and administrative expenses in the Company’s consolidated statements of comprehensive income and consisted of the following (in millions):

Balance as of January 1, 2024$66.8 
Fair value adjustments based upon post-acquisition performance(13.4)
Balance as of June 30, 2024(1)
$53.4 
__________
(1)    Amount comprised of $51.0 million and $2.4 million for InnPlay and Youda Games acquisitions, respectively.
v3.24.2.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table provides information about disaggregated revenue by geographic location of the Company’s players and type of platform (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Geographic location
USA$425.0 $452.9 $865.2 $914.2 
EMEA115.8 102.1 237.4 207.1 
APAC42.5 44.8 86.7 90.9 
Other43.7 43.0 88.9 86.8 
Total$627.0 $642.8 $1,278.2 $1,299.0 

Revenues through third-party platforms and through the Company’s own direct-to-consumer platforms were as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Third-party platforms$453.3 $477.5 $933.0 $982.2 
Direct-to-consumer platforms173.7 165.3 345.2 316.8 
Total revenues$627.0 $642.8 $1,278.2 $1,299.0 
Schedule of Contract Assets and Liabilities
Balances of the Company’s contract assets and liabilities are as follows (in millions):
June 30,
2024
December 31,
2023
Accounts receivable$160.0 $171.5 
Contract assets (1)
10.9 12.5 
Contract liabilities (2)
40.0 46.0 
_______
(1)    Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets.
(2)    Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets.
v3.24.2.u1
SEGMENT INFORMATION (Tables)
6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Schedule of Long-Lived Assets by Country of Domicile
The Company’s long-lived assets, net, by country of domicile are as follows (in millions):
June 30,
2024
December 31,
2023
Israel$86.4 $94.0 
USA64.0 64.8 
Ukraine18.6 21.8 
Other37.2 39.6 
Total long-lived assets, net$206.2 $220.2 
v3.24.2.u1
INTEREST AND OTHER, NET (Tables)
6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Schedule of Interest and Other, Net
Interest and other, net are as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest expense$38.9 $35.8 $77.9 $73.8 
Interest income(13.7)(10.3)(26.7)(18.1)
Foreign currency translation differences, net(4.8)(2.4)(7.6)(4.2)
Other— — — 0.2 
Total interest and other, net$20.4 $23.1 $43.6 $51.7 
v3.24.2.u1
INCOME TAXES (Tables)
6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
Three months ended
June 30,
Six months ended
June 30,
(in millions, except tax rate)2024202320242023
Income before income taxes$120.3 $116.1 $195.2 $239.9 
Provision for income taxes$33.7 $40.4 $55.6 $80.1 
Effective tax rate28.0 %34.8 %28.5 %33.4 %
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables show a summary of changes in accumulated other comprehensive income (loss), net of tax, by component for the three and six months ended June 30, 2024 and 2023 (in millions):

Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2024$(10.0)$27.8 $2.8 $20.6 
Other comprehensive income (loss) before reclassifications(4.0)14.5 (2.5)8.0 
Amounts reclassified from accumulated other comprehensive income (loss)— (6.2)(0.1)(6.3)
Balance as of March 31, 2024(14.0)36.1 0.2 22.3 
Other comprehensive income (loss) before reclassifications(1.5)5.1 (3.5)0.1 
Amounts reclassified from accumulated other comprehensive income— (6.3)1.4 (4.9)
Balance as of June 30, 2024$(15.5)$34.9 $(1.9)$17.5 
                                                                                                                                                    
Foreign Currency TranslationInterest Rate SwapsForeign Currency Derivative ContractsTotal
Balance as of January 1, 2023$(15.6)$37.7 $(4.5)$17.6 
Other comprehensive income (loss) before reclassifications3.1 (4.0)(2.0)(2.9)
Amounts reclassified from accumulated other comprehensive income (loss)— (4.2)2.4 (1.8)
Balance as of March 31, 2023(12.5)29.5 (4.1)12.9 
Other comprehensive income (loss) before reclassifications(0.2)20.5 (2.4)17.9 
Amounts reclassified from accumulated other comprehensive income— (5.5)2.2 (3.3)
Balance as of June 30, 2023$(12.7)$44.5 $(4.3)$27.5 

The amounts in the summary of changes in accumulated other comprehensive income (loss) tables, above, are net of tax expense/(benefits) as follows (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Interest rate swaps$(0.3)$4.5 $2.2 $2.0 
Foreign currency derivative contracts(0.4)0.1 (0.9)— 
v3.24.2.u1
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables)
6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income Per Share
The following table sets forth the computation of basic and diluted net income per share attributable to common stockholders (in millions, except per share data):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Numerator:
Net income$86.6 $75.7 $139.6 $159.8 
Denominator:
Weighted-average shares used in computing net income per share attributable to common stockholders, basic371.4 365.9 370.9 365.3 
Stock-based compensation awards0.4 0.5 0.3 0.5 
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted371.8 366.4 371.3 365.8 
Net income per share, basic$0.23 $0.21 $0.38 $0.44 
Net income per share, diluted$0.23 $0.21 $0.38 $0.44 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share The following outstanding employee equity
awards were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented (in millions):
Three months ended
June 30,
Six months ended
June 30,
2024202320242023
Stock options1.5 2.1 1.6 2.6 
RSUs15.0 10.9 18.8 12.2 
Total16.5 13.0 20.4 14.8 
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Amendment to Stock Purchase Agreement (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 14, 2023
Jun. 30, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 18, 2024
Organization and Summary of Significant Accounting Polices [Line Items]          
Change in earnout liability     $ 13.4 $ 0.0  
G.S InnPlay Labs          
Organization and Summary of Significant Accounting Polices [Line Items]          
Cash consideration $ 80.0        
Maximum earnout payments $ 220.0       $ 170.0
Earnout period 2 years        
Change in earnout liability   $ 16.2      
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of credit risk and significant customers (Details)
6 Months Ended
Jun. 30, 2024
platform
Accounting Policies [Abstract]  
Number of platforms 3
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Major Accounts Receivable (Details) - Customer Concentration Risk - Accounts Receivable
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Apple    
Organization and Summary of Significant Accounting Policies [Line Items]    
Concentration risk percentage 58.00% 56.00%
Google    
Organization and Summary of Significant Accounting Policies [Line Items]    
Concentration risk percentage 26.00% 28.00%
Facebook    
Organization and Summary of Significant Accounting Policies [Line Items]    
Concentration risk percentage 4.00% 4.00%
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Employee Related Benefits (Details) - Retention Pool - 2021-2024 Plan - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Organization and Summary of Significant Accounting Polices [Line Items]        
Deferred compensation arrangement with individual, contributions by employer     $ 25.0  
Deferred compensation arrangement with individual, compensation expense $ 23.3 $ 29.1 $ 46.2 $ 58.9
v3.24.2.u1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investment in Unconsolidated Entities (Details) - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Accounting Policies [Abstract]    
Impairment charges $ 7.0 $ 9.7
v3.24.2.u1
SHORT-TERM INVESTMENTS (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Debt Securities, Available-for-Sale [Line Items]  
Amortized cost $ 390.2
Allowance for credit losses 0.0
Unrealized gains 0.0
Unrealized losses (0.1)
Term deposits  
Debt Securities, Available-for-Sale [Line Items]  
Amortized cost 132.8
Allowance for credit losses 0.0
Unrealized gains 0.0
Unrealized losses 0.0
Commercial papers  
Debt Securities, Available-for-Sale [Line Items]  
Amortized cost 257.4
Allowance for credit losses 0.0
Unrealized gains 0.0
Unrealized losses $ (0.1)
v3.24.2.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Employees and related expenses $ 121.8 $ 162.5
Accrued expenses 83.2 93.9
Media buy 64.8 54.5
Deferred revenues 40.0 46.0
Dividend payable 37.2 0.0
Tax accruals 34.2 35.4
Contingent consideration 31.4 46.0
Total accrued expenses and other current liabilities $ 412.6 $ 438.3
v3.24.2.u1
DEBT - Schedule of Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Mar. 11, 2021
Debt Instrument [Line Items]      
Book value $ 2,410.5 $ 2,416.4  
Less: Current portion of long-term debt (16.5) (16.8)  
Long-term debt 2,394.0 2,399.6  
Face value 2,443.0 2,452.5  
Face value, Current portion of long-term debt (23.8)    
Face value, Long-term debt $ 2,419.2    
Term Loan      
Debt Instrument [Line Items]      
Interest rate 8.21%    
Book value $ 1,816.4 1,822.8  
Face value $ 1,843.0 1,852.5  
Senior Notes      
Debt Instrument [Line Items]      
Interest rate 4.25%   4.25%
Book value $ 594.1 593.6  
Face value 600.0 600.0  
Revolving Credit Facility      
Debt Instrument [Line Items]      
Book value 0.0 $ 0.0  
Face value $ 0.0    
v3.24.2.u1
DEBT - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Mar. 11, 2021
Debt Instrument [Line Items]      
Deferred financing costs $ 32.5 $ 36.1  
Face value 2,443.0 2,452.5  
First Lien Term Loans      
Debt Instrument [Line Items]      
Face value $ 1,900.0    
Percentage of original aggregate principal amount 0.25%    
Revolving Credit Facility      
Debt Instrument [Line Items]      
Face value $ 0.0    
Maximum borrowing capacity $ 600.0    
First-priority net senior secured leverage ratio 0.96    
Revolving Credit Facility | Maximum      
Debt Instrument [Line Items]      
First-priority net senior secured leverage ratio covenant 6.25    
Senior Notes      
Debt Instrument [Line Items]      
Face value $ 600.0 $ 600.0  
Maximum borrowing capacity     $ 600.0
Interest rate 4.25%   4.25%
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended
Apr. 05, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
May 09, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Number of shares authorized (in shares)   47,954,177     47,954,177      
Number of shares available for grant (in shares)   15,447,480     15,447,480      
Cash dividend paid (in dollars per share) $ 0.10              
Cash dividend declared (in dollars per share) $ 0.10 $ 0.10 $ 0.10          
Dividend payable   $ 37,200,000     $ 37,200,000     $ 0
Share repurchase program, authorized, amount             $ 150,000,000  
Capitalization of stock-based compensation costs   600,000   $ 800,000 1,100,000 $ 1,400,000    
PSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Unrecognized stock-based compensation expenses   0     $ 0      
PSUs | Tranche One                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award vesting rights, percentage         100.00%      
PSUs | Tranche Two                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Award vesting rights, percentage         100.00%      
Stock options                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Unrecognized stock-based compensation expenses   3,100,000     $ 3,100,000      
Weighted average period         1 year 4 months 24 days      
RSUs                
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                
Unrecognized stock-based compensation expenses   $ 177,800,000     $ 177,800,000      
Weighted average period         2 years 9 months 18 days      
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Stock Options Outstanding    
Outstanding beginning balance (in shares) 1,700,000  
Granted (in shares) 0  
Exercised (in shares) 0  
Cancelled (in shares) (300,000)  
Expired (in shares) 0  
Outstanding ending balance (in shares) 1,400,000 1,700,000
Exercisable at ending balance (in shares) 900,000  
Weighted average remaining term, Outstanding 7 years 2 months 12 days 7 years 7 months 6 days
Weighted average remaining term, Exercisable 7 years  
Weighted Average Exercise Price    
Outstanding at beginning balance (in dollars per share) $ 17.72  
Granted (in dollars per share) 0  
Cancelled (in dollars per share) 19.22  
Expired (in dollars per share) 0  
Outstanding at ending balance (in dollars per share) 17.40 $ 17.72
Weighted Average Exercise Price, Exercisable (in dollars per share) $ 18.89  
Stock options, outstanding intrinsic value (dollars) $ 0.0  
Intrinsic Value, Exercisable $ 0.0  
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Schedule of Assumptions Used for the Options Granted (Details) - USD ($)
6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted (in shares) 0  
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Risk-free interest rate, minimum   3.34%
Risk-free interest rate, maximum   3.79%
Expected dividend yield   $ 0
Expected term in years   6 years 1 month 6 days
Expected volatility, minimum   52.13%
Expected volatility, maximum   52.79%
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Schedule of RSUs and PSUs Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
6 Months Ended
Jun. 30, 2024
USD ($)
$ / shares
shares
RSUs  
Shares  
Beginning balance (in shares) | shares 21.3
Granted (in shares) | shares 0.5
Vested (less than or equal to for PSUs) (in shares) | shares (2.0)
Cancelled (in shares) | shares (1.9)
Ending balance (in shares) | shares 17.9
Weighted Average Grant Date Fair Value  
Outstanding at beginning balance (in dollars per share) | $ / shares $ 12.24
Granted (in dollars per share) | $ / shares 7.59
Vested (in dollars per share) | $ / shares 16.45
Cancelled (in dollars per share) | $ / shares 12.37
Outstanding at ending balance (in dollars per share) | $ / shares $ 11.60
Total fair value of shares vested (less than or equal to for PSUs) | $ $ 15.5
PSUs  
Shares  
Beginning balance (in shares) | shares 2.2
Granted (in shares) | shares 0.0
Vested (less than or equal to for PSUs) (in shares) | shares (0.1)
Cancelled (in shares) | shares (0.7)
Ending balance (in shares) | shares 1.5
Weighted Average Grant Date Fair Value  
Outstanding at beginning balance (in dollars per share) | $ / shares $ 9.72
Granted (in dollars per share) | $ / shares 0
Vested (in dollars per share) | $ / shares 9.72
Cancelled (in dollars per share) | $ / shares 9.72
Outstanding at ending balance (in dollars per share) | $ / shares $ 9.72
Total fair value of shares vested (less than or equal to for PSUs) | $ $ 0.1
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Schedule of Stock Based Compensation (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs $ 23.5 $ 26.1 $ 47.7 $ 55.9
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs 0.9 1.1 1.7 1.4
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs 24.2 26.9 50.1 54.0
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs $ (1.6) $ (1.9) $ (4.1) $ 0.5
v3.24.2.u1
EQUITY TRANSACTIONS AND STOCK INCENTIVE PLAN - Schedule of Stock Based Compensation, Net of Capitalized, Amount (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs, net of amounts capitalized $ 22.9 $ 25.3 $ 46.6 $ 54.5
Research and development expenses        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs, net of amounts capitalized 7.8 9.5 15.9 19.0
Sales and marketing expenses        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs, net of amounts capitalized 1.6 2.4 3.4 4.8
General and administrative expenses        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total stock-based compensation costs, net of amounts capitalized $ 13.5 $ 13.4 $ 27.3 $ 30.7
v3.24.2.u1
DERIVATIVE INSTRUMENTS - Narrative (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Jun. 30, 2023
derivative_instrument
Jan. 31, 2023
USD ($)
derivative_instrument
Mar. 31, 2021
USD ($)
derivative_instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other non-current assets, Prepaid expenses and other current assets      
Derivative instruments - interest rate swaps        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Number of derivative agreements | derivative_instrument   2 2 2
Notional value     $ 250.0  
Fixed interest rate   0.85%    
Derivative instrument, basis spread on variable rate, period     6 months  
Derivative asset $ 45.5      
Interest Rate Swap One        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Notional value       $ 250.0
Fixed interest rate     3.435% 0.9275%
Interest Rate Swap Two        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Notional value       $ 250.0
Fixed interest rate     3.435% 0.9275%
Foreign currency hedge        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Approximate amount of hedges $ 207.9      
Derivative maturity 12 months      
Net derivative $ (2.3)      
v3.24.2.u1
DERIVATIVE INSTRUMENTS - Schedule of Derivative Instrument Activity (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Designated as Hedging Instrument | Foreign currency derivative contracts        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative instruments $ 65.4 $ 54.0 $ 105.4 $ 92.7
Designated as Hedging Instrument | Derivative instruments - interest rate swaps        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative instruments 0.0 0.0 0.0 500.0
Not Designated as Hedging Instrument | Derivative instruments - others (non-hedging)        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Derivative instruments $ 0.0 $ (0.3) $ 0.0 $ 1.6
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurement of the Long-term Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Face Value $ 2,443.0 $ 2,452.5
Fair Value 2,365.0 2,373.7
Term Loan    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Face Value 1,843.0 1,852.5
Term Loan | Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value 1,843.0 1,847.9
Senior Notes    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Face Value 600.0 600.0
Senior Notes | Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 522.0 $ 525.8
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Short-term investments $ 390.1 $ 0.0
Money market funds | Level 1    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash equivalents 346.2 524.4
Term deposits | Level 1    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash equivalents 66.2 290.3
Short-term investments 132.8 0.0
Commercial papers | Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Cash equivalents 129.6 104.8
Short-term investments $ 257.3 $ 0.0
Interest rate swaps    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other non-current assets Other non-current assets
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities, including employee related benefits Other long-term liabilities, including employee related benefits
Interest rate swaps | Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Prepaid expenses and other current assets $ 27.8 $ 25.3
Other non-current assets 17.7 15.2
Other long-term liabilities, including employee related benefits $ 0.0 $ 4.4
Foreign currency derivative contracts    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
Foreign currency derivative contracts | Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Prepaid expenses and other current assets $ 0.9 $ 4.3
Accrued expenses and other current liabilities $ 3.2 $ 0.9
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value of Contingent Consideration Payable (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Jun. 30, 2023
Business Combination, Contingent Consideration [Roll Forward]      
Fair value adjustments based upon post-acquisition performance   $ (13.4) $ 0.0
G.S InnPlay Labs      
Business Combination, Contingent Consideration [Roll Forward]      
Fair value adjustments based upon post-acquisition performance $ (16.2)    
Ending balance 51.0 51.0  
Business combination, contingent consideration, liability 51.0 51.0  
Youda Games      
Business Combination, Contingent Consideration [Roll Forward]      
Ending balance 2.4 2.4  
Business combination, contingent consideration, liability 2.4 2.4  
Level 3      
Business Combination, Contingent Consideration [Roll Forward]      
Beginning balance   66.8  
Fair value adjustments based upon post-acquisition performance   (13.4)  
Ending balance 53.4 53.4  
Business combination, contingent consideration, liability $ 53.4 $ 53.4  
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands, ₪ in Millions
Jul. 26, 2024
claim
Jun. 01, 2024
claim
Nov. 13, 2023
USD ($)
Aug. 25, 2023
USD ($)
Mar. 08, 2023
May 17, 2022
ILS (₪)
Jul. 26, 2023
USD ($)
Loss Contingencies [Line Items]              
Accrued loss contingency             $ 3,600
Number of claims | claim   5,264          
Subsequent Event              
Loss Contingencies [Line Items]              
Number of claims | claim 4,549            
Guy David Ben Yosef vs. Playtika Group Israel Ltd              
Loss Contingencies [Line Items]              
Exposure period           7 years  
Net income stock damages | ₪           ₪ 50  
Gina v. Burt vs Playtika Ltd.              
Loss Contingencies [Line Items]              
Lawsuit recover during the period     1 year        
Lawsuit coverage     $ 75        
Gayla Hamilton Mills vs. Playtika Ltd.              
Loss Contingencies [Line Items]              
Lawsuit recover during the period       1 year 1 year    
Lawsuit coverage       $ 75      
v3.24.2.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Revenues $ 627.0 $ 642.8 $ 1,278.2 $ 1,299.0
Third-party platforms        
Disaggregation of Revenue [Line Items]        
Revenues 453.3 477.5 933.0 982.2
Direct-to-consumer platforms        
Disaggregation of Revenue [Line Items]        
Revenues 173.7 165.3 345.2 316.8
USA        
Disaggregation of Revenue [Line Items]        
Revenues 425.0 452.9 865.2 914.2
EMEA        
Disaggregation of Revenue [Line Items]        
Revenues 115.8 102.1 237.4 207.1
APAC        
Disaggregation of Revenue [Line Items]        
Revenues 42.5 44.8 86.7 90.9
Other        
Disaggregation of Revenue [Line Items]        
Revenues $ 43.7 $ 43.0 $ 88.9 $ 86.8
v3.24.2.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]    
Contract receivable collection period   30 days
Contract liabilities recognized $ 10.3 $ 33.7
v3.24.2.u1
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable $ 160.0 $ 171.5
Contract assets 10.9 12.5
Contract liabilities $ 40.0 $ 46.0
v3.24.2.u1
SEGMENT INFORMATION - Narrative (Details)
6 Months Ended
Jun. 30, 2024
segment
Segment Reporting [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.24.2.u1
SEGMENT INFORMATION - Schedule of Long-Lived Assets By Country of Domicile (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Total long-lived assets, net $ 206.2 $ 220.2
Israel    
Segment Reporting Information [Line Items]    
Total long-lived assets, net 86.4 94.0
USA    
Segment Reporting Information [Line Items]    
Total long-lived assets, net 64.0 64.8
Ukraine    
Segment Reporting Information [Line Items]    
Total long-lived assets, net 18.6 21.8
Other    
Segment Reporting Information [Line Items]    
Total long-lived assets, net $ 37.2 $ 39.6
v3.24.2.u1
INTEREST AND OTHER, NET (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Other Income and Expenses [Abstract]        
Interest expense $ 38.9 $ 35.8 $ 77.9 $ 73.8
Interest income (13.7) (10.3) (26.7) (18.1)
Foreign currency translation differences, net (4.8) (2.4) (7.6) (4.2)
Other 0.0 0.0 0.0 0.2
Total interest and other, net $ 20.4 $ 23.1 $ 43.6 $ 51.7
v3.24.2.u1
INCOME TAXES (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Tax Disclosure [Abstract]        
Income before income taxes $ 120.3 $ 116.1 $ 195.2 $ 239.9
Provision for income taxes $ 33.7 $ 40.4 $ 55.6 $ 80.1
Effective tax rate 28.00% 34.80% 28.50% 33.40%
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
3 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance $ (180.4) $ (221.5) $ (460.7) $ (568.6)
Other comprehensive income (loss) before reclassifications 0.1 8.0 17.9 (2.9)
Amounts reclassified from accumulated other comprehensive income (loss) (4.9) (6.3) (3.3) (1.8)
Ending balance (112.9) (180.4) (344.9) (460.7)
Total        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance 22.3 20.6 12.9 17.6
Ending balance 17.5 22.3 27.5 12.9
Foreign Currency Translation        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance (14.0) (10.0) (12.5) (15.6)
Other comprehensive income (loss) before reclassifications (1.5) (4.0) (0.2) 3.1
Amounts reclassified from accumulated other comprehensive income (loss) 0.0 0.0 0.0 0.0
Ending balance (15.5) (14.0) (12.7) (12.5)
Derivative Contracts | Interest rate swaps        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance 36.1 27.8 29.5 37.7
Other comprehensive income (loss) before reclassifications 5.1 14.5 20.5 (4.0)
Amounts reclassified from accumulated other comprehensive income (loss) (6.3) (6.2) (5.5) (4.2)
Ending balance 34.9 36.1 44.5 29.5
Derivative Contracts | Foreign currency        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Beginning balance 0.2 2.8 (4.1) (4.5)
Other comprehensive income (loss) before reclassifications (3.5) (2.5) (2.4) (2.0)
Amounts reclassified from accumulated other comprehensive income (loss) 1.4 (0.1) 2.2 2.4
Ending balance $ (1.9) $ 0.2 $ (4.3) $ (4.1)
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax Expense/(Benefits) (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Interest rate swaps        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Tax expense (benefit) $ (0.3) $ 4.5 $ 2.2 $ 2.0
Foreign currency        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Tax expense (benefit) $ (0.4) $ 0.1 $ (0.9) $ 0.0
v3.24.2.u1
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Numerator:            
Net income $ 86.6 $ 53.0 $ 75.7 $ 84.1 $ 139.6 $ 159.8
Denominator:            
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) 371.4   365.9   370.9 365.3
Stock-based compensation awards (in shares) 0.4   0.5   0.3 0.5
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) 371.8   366.4   371.3 365.8
Net income per share, basic (in dollars per share) $ 0.23   $ 0.21   $ 0.38 $ 0.44
Net income per share, diluted (in dollars per share) $ 0.23   $ 0.21   $ 0.38 $ 0.44
v3.24.2.u1
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
shares in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share (in shares) 16.5 13.0 20.4 14.8
Stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share (in shares) 1.5 2.1 1.6 2.6
RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share (in shares) 15.0 10.9 18.8 12.2
PSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Anti-dilutive securities excluded from computation of earnings per share (in shares) 1.5 2.2 1.5 2.2

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