Playtika(US:PLTK)2025-11-06 13:36Financial Performance - Revenues for Q3 2025 reached $674.6 million, a 8.5% increase from $620.8 million in Q3 2024[18] - Net income for Q3 2025 was $39.1 million, slightly down from $39.3 million in Q3 2024, resulting in a net income per share of $0.11[18] - Comprehensive income for Q3 2025 was $34.3 million, compared to $28.8 million in Q3 2024, indicating a positive trend[18] - Net income for the nine months ended September 30, 2025, was $102.9 million, compared to $178.9 million for the same period in 2024[25] - Total revenues for the three months ended September 30, 2025, were $674.6 million, a 8.7% increase from $620.8 million in the same period of 2024[117] - Revenue from the USA for the three months ended September 30, 2025, was $418.5 million, compared to $410.9 million in 2024, reflecting a growth of 1.6%[117] - Revenue from EMEA for the three months ended September 30, 2025, increased by 33.7% to $162.3 million from $121.4 million in 2024[117] - Direct-to-consumer platform revenues for the nine months ended September 30, 2025, were $564.4 million, up from $519.6 million in 2024, marking a 8.6% increase[117] Expenses and Costs - The company reported total costs and expenses of $576.2 million for Q3 2025, an increase from $523.3 million in Q3 2024[18] - Research and development expenses for Q3 2025 were $98.8 million, nearly unchanged from $99.2 million in Q3 2024[18] - Sales and marketing expenses surged to $206.3 million in Q3 2025, up 37.6% from $149.9 million in Q3 2024[18] - Advertising expenses for the three months ended September 30, 2025, were $153.2 million, compared to $114.9 million in 2024, representing a 33.2% increase[121] - Interest expense for the three months ended September 30, 2025, was $36.6 million, a decrease from $38.7 million in 2024[124] Assets and Liabilities - Total current assets increased to $993.2 million as of September 30, 2025, compared to $872.8 million at December 31, 2024, reflecting a growth of 13.8%[16] - Total liabilities decreased slightly to $3,763.2 million from $3,770.3 million at the end of 2024[16] - Cash and cash equivalents stood at $565.8 million as of September 30, 2025, down from $587.9 million at December 31, 2024[16] - The accumulated deficit improved to $(894.2) million from $(904.1) million at the end of 2024[16] - Total cash, cash equivalents, and restricted cash at the end of the period was $589.4 million, compared to $1,147.4 million at the end of September 2024[26] - The company's accounts receivable as of September 30, 2025, was $168.0 million, down from $187.6 million at the end of 2024[119] - Total accrued expenses and other current liabilities increased to $611.3 million as of September 30, 2025, up from $463.0 million at December 31, 2024[57] - The Company has a total debt of $2,391.8 million as of September 30, 2025, with a term loan maturing in 2028 and senior notes maturing in 2029[63] Cash Flow - Cash flows from operating activities provided $281.8 million, down from $337.0 million in the previous year[25] - The company had cash and cash equivalents totaling $589.4 million as of September 30, 2025, an increase from $567.7 million at December 31, 2024[192] - The company reported a net cash used in investing activities of $115.8 million for the nine months ended September 30, 2025[25] Stock and Dividends - The company declared cash dividends of $0.10 per share, totaling $112.5 million for the nine months ended September 30, 2025[25] - A cash dividend of $0.10 per share was declared, amounting to $37.6 million, payable on July 7, 2025[74] - The Company repurchased approximately 1.3 million shares at an average cost of $4.09 per share, with $133.1 million remaining under the stock repurchase program[75] Acquisitions and Investments - The acquisition of SuperPlay Ltd. was completed for an initial purchase price of $700.0 million, with potential earnout payments of up to $1.250 billion based on future performance[33] - As of September 30, 2025, the estimated fair value of contingent consideration related to the SuperPlay acquisition was $340.0 million[35] - The Company recorded impairment charges of $1.9 million for the nine months ended September 30, 2025, down from $36.3 million in the previous year[25] - The Company recorded impairments of $29.3 million and $36.3 million related to certain equity investments during the three and nine months ended September 30, 2024, respectively[52] Legal and Compliance - The Company does not expect any material financial impact from ongoing litigation related to various lawsuits, including those alleging unlawful gambling practices[97][103][109] - The Company intends to vigorously defend against all ongoing litigation, which may impact its financial condition but cannot be estimated at this time[97][109] - The company intends to vigorously defend against multiple legal claims alleging unlawful practices related to its games, but cannot estimate the potential impact on financial results[110][111][113][116] Financial Instruments and Derivatives - The Company had outstanding derivative contracts to purchase foreign currencies hedging approximately $187.5 million in future salary expenses, with a net asset fair value of $13.2 million[86] - The aggregate fair value of the Company's interest rate swap agreements was a net asset of $7.2 million as of September 30, 2025[85] - The fair value of derivative instruments related to interest rate swaps decreased from $19.4 million to $9.5 million, a decline of approximately 51%[92] - The estimated fair value of the company's interest rate swap agreements is derived from a discounted cash flow analysis, with borrowings under the Term Loan at $1,796.2 million as of September 30, 2025[187] Taxation - The effective tax rate for the nine months ended September 30, 2025, was 28.7%, down from 30.9% in the same period of 2024[125]