Playtika(US:PLTK)2025-05-08 12:35Financial Performance - Revenues for Q1 2025 increased to $706.0 million, up 8.5% from $651.2 million in Q1 2024[18] - Net income for Q1 2025 was $30.6 million, a decrease of 42.3% compared to $53.0 million in Q1 2024[18] - Operating expenses for Q1 2025 totaled $638.2 million, up 15.4% from $553.1 million in Q1 2024[18] - Advertising expenses for the three months ended March 31, 2025, were $224.4 million, up from $160.1 million in 2024, indicating a 40.1% increase[102] - For the three months ended March 31, 2025, total revenues increased to $706.0 million, up from $651.2 million in the same period of 2024, representing an 8.4% growth[97] - Net income for the three months ended March 31, 2025, was $30.6 million, down from $53.0 million in 2024, reflecting a decrease of 42.3%[108] Assets and Liabilities - Total current assets decreased to $827.8 million from $872.8 million as of December 31, 2024[16] - Total liabilities decreased to $3,693.8 million from $3,770.3 million as of December 31, 2024[16] - Cash and cash equivalents increased to $565.8 million from $434.8 million as of December 31, 2024[16] - Total stockholders' deficit improved to $(117.2) million from $(131.1) million as of December 31, 2024[16] - As of March 31, 2025, the total debt of the company was $2,397.1 million, a decrease from $2,424.0 million as of December 31, 2024[56] - Long-lived assets, net, increased to $228.0 million as of March 31, 2025, from $205.3 million as of December 31, 2024[103] Cash Flow and Expenses - Cash flows from operating activities provided $18.8 million, down from $29.6 million in Q1 2024[24] - Cash paid for income taxes decreased to $17.3 million in Q1 2025 from $33.2 million in Q1 2024, representing a 48% reduction[25] - Cash paid for interest decreased to $40.6 million in Q1 2025 from $43.3 million in Q1 2024, a decline of 6.3%[25] - Total accrued expenses and other current liabilities decreased to $367.9 million as of March 31, 2025, down from $463.0 million as of December 31, 2024, a reduction of 20.5%[51] Shareholder Actions - The company declared a cash dividend of $0.10 per share, totaling $37.6 million[20] - A cash dividend of $0.10 per share was declared on February 25, 2025, totaling $37.6 million, payable on April 4, 2025[64] - The company repurchased approximately 0.8 million shares at an average cost of $5.90 per share during the three months ended March 31, 2025, with $144.3 million remaining under the stock repurchase program[65] - Total stock-based compensation costs for the three months ended March 31, 2025, were $25.8 million, an increase from $24.2 million in the same period of 2024[69] Debt and Financing - The company has a $1.9 billion senior secured first lien term loan maturing on March 11, 2028, and a $600 million revolving credit facility maturing on March 11, 2026[57] - The company's first-priority net senior secured leverage ratio was 1.77 to 1.0 as of March 31, 2025, well below the maximum covenant of 6.25 to 1.0[58] - The aggregate principal amount of the Revolving Credit Facility was decreased from $600 million to $550 million[110] - The applicable margin for the Revolving Credit Facility is 3.00% per annum for Term SOFR loans and 2.00% per annum for base rate loans[111] - The Company had borrowings outstanding under the Term Loan with book values of $1,802.2 million and $1,805.4 million as of March 31, 2025, and December 31, 2024, respectively[169] Legal Matters - The Company is involved in multiple lawsuits alleging unlawful gambling practices, which could impact its financial condition, but the potential effects remain uncertain at this stage[85][91][92][93] - The Company has defended its position vigorously in ongoing litigation, including a class action lawsuit and derivative actions, with motions to dismiss filed in several cases[85][86][88] - The Company is awaiting a ruling on an appeal related to a class action lawsuit, which may affect its financial results[85] - The expected range of loss from a settlement regarding a class action lawsuit in Israel is not material to the Company's financial statements[87] Currency and Interest Rate Risks - The Company is exposed to foreign currency risks related to operating expenses denominated in currencies other than the U.S. Dollar, primarily the Euro, Israeli Shekel, British Pound, Polish Zloty, and Romanian Leu[174] - A hypothetical 100 basis point increase in interest rates would have increased the interest expense by $8.2 million over a twelve-month period[170] - A hypothetical 100 basis point increase in interest rates would have decreased the fair value of the senior notes by $18.8 million as of March 31, 2025[171] - The estimated fair value of the interest rate swap agreements is derived from a discounted cash flow analysis[168] Other Financial Metrics - The effective tax rate for the three months ended March 31, 2025, was 25.5%, compared to 29.2% in the same period of 2024[105] - The Company recorded an impairment of $7.0 million related to one of its investments during Q1 2024, with no changes recorded in Q1 2025[48] - The Company recorded $5.4 million of additional expense to adjust contingent consideration associated with the SuperPlay Acquisition to its estimated fair value as of March 31, 2025[34] - The balance of contingent consideration payable increased from $379.6 million to $386.5 million, reflecting an adjustment of $6.9 million based on post-acquisition performance[82]