BofA Securities analyst Omar Dessouky double-upgraded the shares of Playtika Holding Corp PLTK on Wednesday from Underperform to Buy and raised the price forecast from $6 to $6.50.The company has the highest profitability in the industry, with 30% EBITDA margins, and is home to some of the largest mobile gaming franchises, the analyst said.Despite being in a mature yet growing industry, PLTK’s 21% FCF yield and 9% dividend yield suggest limited downside.The stock’s recent dislocation is attributed to shareh ...

Core Viewpoint - Playtika's stock is experiencing a significant surge following a double-upgrade from Bank of America, indicating a potential shift in analyst sentiment towards the mobile gaming sector [1] Company Performance - Playtika's stock rose by 21.7%, trading at $5.36, recovering from an all-time low of $3.97 on March 21, although it still shows a year-to-date decline of 24.2% [2] - The stock is reclaiming most short-term moving averages, but faces resistance from longer-term trendlines, suggesting potential challenges for sustained rally [2] Analyst Sentiment - A notable 73% of analysts currently rate Playtika as a "hold" or worse, indicating that a shift in this bearish sentiment could lead to a significant price increase [3] - Short interest has increased by 31.6% over the last two reporting periods, with nearly 9.9% of the float sold short, presenting a potential for a short squeeze if the rally continues [3] Options Market Activity - Options traders have shown a bearish inclination, with a put/call volume ratio ranking in the 92nd percentile of annual readings, but this trend appears to be shifting due to the recent price increase [4] - The options market has seen a surge in activity, with 4,273 calls traded, which is 67 times the average intraday volume, indicating increased interest in bullish positions [4]

Now through April 1, House of Fun's in-game chef feature dishes up a side of giving as players can participate to work towards milestone markers in support of the game's donation to Meals on Wheels AmericaHERZLIYA, Israel, March 19, 2025 /PRNewswire/ -- House of Fun (HoF), a free-to-play slots game from Playtika, is launching Chef Academy, a limited-time feature that lets players support a meaningful cause while enjoying their favorite game. From now until April 1, 2025, players can help support non-profit ...

Core Insights - Playtika Holding Corp. announced participation in investor conferences in Q1 2025, including the Morgan Stanley Technology, Media & Telecom Conference [1] Company Overview - Playtika is a leader in mobile gaming entertainment and technology, founded in 2010, and is known for offering free-to-play social games on social networks and mobile platforms [3] - The company is headquartered in Herzliya, Israel, and aims to entertain the world through various gaming experiences [3] Investor Relations - Investors can schedule meetings with management through Morgan Stanley or ROTH representatives, and a live webcast of the presentations will be available on Playtika's Investor Relations page [2] - A replay of the discussions and the latest investor presentation can also be accessed on the company's Investor Relations page [2] Upcoming Events - Playtika will present at the 37th Annual ROTH Conference on March 17, 2025, at 08:30 AM PT in Dana Point, CA [6] - The company will also present at the Morgan Stanley Technology, Media & Telecom Conference [1]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated $2.549 billion in revenue, a decrease of 0.7% year-over-year, with GAAP net income of $162.2 million compared to $235 million in 2023, and credit adjusted EBITDA of $757.7 million, reflecting a 9% decline year-over-year [17][18] - In Q4 2024, revenue was $650.3 million, up 4.8% sequentially and 1.9% year-over-year, while GAAP net income was negative $16.7 million compared to $39.3 million in Q3 and $37.3 million in Q4 2023 [18][19] - The company generated $396.8 million in free cash flow, a 9.1% decline year-over-year [17] Business Line Data and Key Metrics Changes - Revenue from direct-to-consumer platforms was $174.6 million, up 0.1% sequentially and 8% year-over-year [19] - Bingo Blitz revenue was $159.1 million, down 0.5% sequentially but up 5.8% year-over-year [19] - Slotomania revenue was $118.4 million, down 7.9% sequentially and 13.5% year-over-year, attributed to game economy issues [19][20] - Solitaire Grand Harvest revenue was $72.5 million, down 8.1% sequentially and 4.3% year-over-year [21] Market Data and Key Metrics Changes - The average daily paying users (DPU) increased by 12.6% sequentially and 10.8% year-over-year, while average daily active users (DAU) increased by 5.3% sequentially but decreased by 7% year-over-year [27] Company Strategy and Development Direction - The company is focused on executing a return to growth strategy, including a capital allocation framework, quarterly dividends, and a buyback program [7][10] - The acquisition of SuperPlay is a key milestone, adding two strong game franchises to the portfolio and enhancing future growth potential [7][8] - Plans to launch three new games in the next 12 to 18 months, including Disney's Solitaire and Claire's Chronicles, are underway [8][9] - The company is transitioning its portfolio away from declining legacy titles and investing in growth through recently acquired studios [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about generating consistent top-line growth through new game launches and M&A opportunities [10][28] - The company anticipates a transitional year in 2025, with investments in growth titles expected to yield positive EBITDA contributions starting in 2026 [32][33] - The overall strategy remains focused on maximizing free cash flow and disciplined fiscal management to drive long-term value creation [34][36] Other Important Information - The company is adopting a more market-based executive compensation structure to align leadership interests with shareholder returns [16] - Cost of revenue decreased by 1% year-over-year, while operating expenses increased by 13.7% year-over-year, primarily due to the SuperPlay acquisition [24][25] Q&A Session Summary Question: Organic growth trajectory for 2025 - Management indicated that organic growth from existing and recently acquired titles is expected to be flat, with high singles growth anticipated for the casino business [39][40] Question: In-app advertising strategy - Management clarified that the focus remains on in-app purchases rather than in-app advertising, despite trends in e-commerce ads [47][48] Question: DTC strategy and revenue mix - Management reported that the DTC strategy is on track, with significant year-over-year growth, and is expected to be a key growth driver for EBITDA [51][52] Question: New game pipeline contribution - Management stated that new games' contributions to revenue in 2025 are expected to be immaterial, with all development costs included in guidance [59][60] Question: Slotomania performance improvements - Management noted improvements in Slotomania's game economy and ongoing content additions, with expectations for sustainability in Q1 [63][66] Question: Bringing games to DTC platform - Management explained that the maturity of games and technology readiness are key factors in bringing games to the DTC platform, with plans for acquired games to transition [68][70] Question: Social casino genre outlook - Management sees stability in the social casino genre with opportunities for market share growth, despite limited overall growth in the genre [72][73]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated $2.549 billion in revenue, a decrease of 0.7% year-over-year, with GAAP net income of $162.2 million compared to $235 million in 2023, and credit adjusted EBITDA of $757.7 million, reflecting a 9% decline year-over-year [17][18] - In Q4 2024, revenue was $650.3 million, up 4.8% sequentially and 1.9% year-over-year, while GAAP net income was negative $16.7 million compared to $39.3 million in Q3 and $37.3 million in Q4 2023 [18][19] - The company reported a credit adjusted EBITDA of $183.9 million for Q4, down 6.7% sequentially and 2.6% year-over-year, with a credit adjusted EBITDA margin of 28.3% compared to 31.8% in Q3 and 29.6% in Q4 last year [18][19] Business Line Data and Key Metrics Changes - Revenue from direct-to-consumer platforms was $174.6 million, up 0.1% sequentially and 8% year-over-year [19] - Bingo Blitz generated $159.1 million in revenue, down 0.5% sequentially but up 5.8% year-over-year, while Slotomania's revenue was $118.4 million, down 7.9% sequentially and 13.5% year-over-year [19][20] - Solitaire Grand Harvest revenue was $72.5 million, down 8.1% sequentially and 4.3% year-over-year, indicating underperformance [21] Market Data and Key Metrics Changes - The company noted that acquired titles like Animals & Coins and Governor of Poker 3 showed robust performance, with Animals & Coins achieving record results during the Black Friday period [22][23] - SuperPlay contributed approximately $48 million in revenue for the quarter, reflecting only a partial period contribution due to the timing of the acquisition [23] Company Strategy and Development Direction - The company is focused on executing a return to growth strategy, which includes a capital allocation framework, quarterly dividends, a buyback program, and a plan to restart M&A activities [7][10] - Over the next 12 to 18 months, the company plans to launch three new games, including Disney's Solitaire and Claire's Chronicles, while continuing to explore M&A opportunities [8][9] - The company is transitioning its portfolio away from declining legacy titles and investing in new studios to enhance growth potential [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about generating consistent top-line growth through new game launches and investments in existing titles [10][32] - The company anticipates a transitional year in 2025, with expected revenue between $2.8 billion and $2.85 billion and adjusted EBITDA between $715 million and $740 million [28][32] - Management highlighted the importance of stabilizing the business while investing in new titles, expecting in-play and SuperPlay studios to become positive EBITDA contributors by 2026 [33][34] Other Important Information - The company is adopting a more market-based executive compensation structure to align leadership interests with shareholder returns [16] - Free cash flow for the year was $396.8 million, reflecting a 9.1% decline year-over-year [17] Q&A Session Summary Question: What is the organic growth trajectory for 2025? - Management indicated that the existing portfolio and recently acquired titles are expected to trend around flat, with high singles growth anticipated for the casino business [39][40] Question: What are the key learnings from the DTC strategy in 2024? - Management noted that DTC has been a significant growth driver for EBITDA, with a successful strategy in place [51][52] Question: How is the new game pipeline trending? - Management expressed excitement about the upcoming launch of Disney's Solitaire, expecting it to be one of the top games in the next year [55][56] Question: How does the company view the social casino genre's growth? - Management sees stability in the genre with opportunities to gain market share, despite not expecting significant overall growth [72][73] Question: What is the roadmap for introducing more IGT content? - Management reported positive engagement from Cleopatra II and is excited about rolling out more IGT content throughout the year [84]

For the quarter ended December 2024, Playtika Holding (PLTK) reported revenue of $650.3 million, up 1.9% over the same period last year. EPS came in at $0.03, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $624.91 million, representing a surprise of +4.06%. The company delivered an EPS surprise of -83.33%, with the consensus EPS estimate being $0.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wal ...

Playtika Holding (PLTK) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -83.33%. A quarter ago, it was expected that this mobile game developer would post earnings of $0.18 per share when it actually produced earnings of $0.11, delivering a surprise of -38.89%.Over the last four quart ...

Financial Performance - In the year ended December 31, 2024, the company generated revenues of $2,549.3 million, net income of $162.2 million, and Credit Adjusted EBITDA of $757.7 million, resulting in a net income margin of 6.4% and a Credit Adjusted EBITDA margin of 29.7%[42] - Credit Adjusted EBITDA margin decreased from 32.4% in 2023 to 29.7% in 2024, while net income margin fell from 9.2% in 2023 to 6.4% in 2024[108] - Total revenues declined by 0.7% during 2024, with revenues from the social casino games portfolio declining by 5.6%[159] - Total revenues decreased by 1.9% year-over-year in 2023 and 0.7% year-over-year in 2024, indicating a decline in revenue growth rates[172] - The effective tax rate for 2024 was 42.2%, an increase from 40.1% in 2023, reflecting potential impacts from changing tax laws[184] User Engagement and Acquisition - The company's Daily Payer Conversion increased from 3.6% in 2023 to 3.8% in 2024, while ARPDAU rose from $0.81 to $0.86 during the same period[48] - The average Daily Paying Users (DPUs) remained stable at 0.31 million for both 2023 and 2024[48] - The average Daily Payer Conversion rate was 3.8% for the year ended December 31, 2024[111] - 98.4% of total revenues were derived from in-game purchases for the years ended December 31, 2024 and 2023[115] - The company has increased the use of incentivized marketing, which accounted for over 50% of user acquisition activity within certain games in 2024[152] Game Portfolio and Revenue Sources - The top ten games accounted for 94.1% of total revenues in 2024, with casual games generating 58.9% and social casino-themed games contributing 41.1%[62] - The two largest games, Slotomania and Bingo Blitz, generated approximately 45% of total revenues for the year ended December 31, 2024[62] - The top two games, Slotomania and Bingo Blitz, generated approximately 45% and 46% of total revenues for the years ended December 31, 2024 and 2023, respectively[105] - For the year ended December 31, 2024, 68.6% of the company's revenues were generated through the iOS App Store, Facebook, and Google Play Store[101] - The company derived 1.6% of its revenues from in-game advertising for the years ended December 31, 2024, and 2023[134] Competition and Market Challenges - The company faces significant competition from major players such as Tencent Holdings, Activision Blizzard, and Electronic Arts, among others[67] - The mobile gaming industry is characterized by low barriers to entry, leading to increased competition and a rapidly evolving market[122] - The effectiveness of user acquisition activities may decline due to intensified competition and evolving privacy rules, potentially impacting revenue[112] - The company has faced a decline in revenues from social casino games, with Slotomania revenues declining by approximately 9.5% in 2024 and 9.0% in 2023[105] Regulatory and Legal Environment - The company is subject to various evolving laws and regulations related to online gaming, privacy, and consumer protection, which could increase compliance costs and impact revenues[75] - A U.S. Court of Appeals ruling classified a competitor's social casino game as illegal gambling, raising concerns for the company regarding potential legal challenges[78] - The company is actively monitoring and adapting to regulatory changes regarding in-game purchases and loot boxes, which may affect monetization strategies[82] - The company faces ongoing litigation related to the classification of its social casino games as illegal gambling, which could result in significant financial liabilities[143] Employee and Operational Insights - Approximately 75% of the company's employees are engaged in research and development, facilitating consistent updates and enhancements to games[65] - As of December 31, 2024, the company had approximately 3,500 employees, emphasizing the importance of its skilled workforce as a competitive advantage[93] - The company invests in employee development and retention strategies, including comprehensive compensation packages and career development services, to maintain a competitive workforce[94] - The loss of key personnel, particularly in Israel, could disrupt game development and negatively impact the company's operations[161][166] Debt and Financial Obligations - The company has significant indebtedness and is subject to obligations and restrictive covenants under its debt instruments, which could limit operational flexibility[99] - As of December 31, 2024, the company had $2,428.8 million in outstanding indebtedness and $600.0 million available for borrowing under a revolving credit facility[129] - The company agreed to make future earnout payments of up to $1.250 billion related to the acquisition of SuperPlay, Ltd., contingent on achieving specific revenue and EBITDA targets[132] - The company expects to refinance all or a portion of its indebtedness before maturity, with potential risks of increased interest expenses if refinancing is not available at comparable rates[133] International Operations and Risks - The company faces risks related to international operations, including political, regulatory, and economic uncertainties[199] - The company has significant operations in central and eastern Europe, where political instability could negatively affect business performance[211] - The company has closed its operations in Belarus as of December 31, 2024, due to regional instability and sanctions following the Russian invasion of Ukraine[212] - The ongoing conflict in Ukraine may materially and adversely affect the company's business, financial condition, and results of operations due to potential sanctions and operational restrictions[224] Technology and Security - The company operates a proprietary technology platform that enhances live operations services, powered by machine learning and AI for various use cases[49] - The company emphasizes the importance of security for its games, as breaches could compromise player information and expose the company to liability[238] - Security incidents could result in unauthorized access to data, operational interruptions, and significant costs related to incident response and compliance[238] - The company does not maintain comprehensive insurance for system failures or business interruptions, increasing potential risks[237]

Exhibit 99.1 Playtika Holding Corp. Reports Q4 and 2024 Financial Results Revenue of $650.3 million and Direct-to-Consumer ("DTC") Revenue of $174.6 million DTC platforms Revenue Increased 0.1% Sequentially and 8.0% Year Over Year GAAP Net Income of $(16.7) million and Credit Adj. EBITDA of $183.9 million Herzliya, Israel – February 27, 2025 - Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its fourth quarter and fiscal year ended December 31, 2024. Fourth Quarter 2024 Financial H ...