Playtika(US:PLTK)2023-08-08 12:34Financial Performance - Total revenues for Q2 2023 were $642.8 million, a decrease of 2.9% compared to $659.6 million in Q2 2022[18] - Net income for the six months ended June 30, 2023, was $159.8 million, up 33.7% from $119.6 million in the same period of 2022[18] - Income from operations for Q2 2023 was $139.2 million, significantly higher than $91.3 million in Q2 2022, marking a 52.5% increase[18] - Comprehensive income for the six months ended June 30, 2023, was $169.7 million, compared to $119.1 million in the same period of 2022, reflecting a 42.5% increase[18] - Net income for the three months ended June 30, 2023, was $75.7 million, a 108% increase from $36.4 million in the same period of 2022[100] - Basic net income per share for the three months ended June 30, 2023, was $0.21, compared to $0.09 for the same period in 2022, representing a 133% increase[100] - The effective tax rate for the three months ended June 30, 2023, was 34.8%, compared to 47.2% for the same period in 2022[95] Expenses and Costs - Research and development expenses decreased to $100.3 million in Q2 2023 from $125.2 million in Q2 2022, reflecting a reduction of 19.9%[18] - Stock-based compensation for the six months ended June 30, 2023, was $54.5 million, down from $75.2 million in the same period of 2022[23] - Total stock-based compensation costs for Q2 2023 were $26.1 million, a decrease of 27.7% from $36.1 million in Q2 2022[60] - Research and development expenses for Q2 2023 were $9.5 million, down from $13.2 million in Q2 2022, representing a 28.0% decrease[60] - Interest expense for the three months ended June 30, 2023, was $35.8 million, an increase from $25.9 million in the same period of 2022[94] Assets and Liabilities - Total assets increased to $2,845.2 million as of June 30, 2023, compared to $2,697.6 million at the end of 2022, representing a growth of 5.5%[16] - The company reported a total stockholders' deficit of $344.9 million as of June 30, 2023, an improvement from a deficit of $568.6 million at the end of 2022[16] - The company’s long-term debt remained relatively stable at $2,405.8 million as of June 30, 2023, compared to $2,411.2 million at the end of 2022[16] - As of June 30, 2023, total accrued expenses and other current liabilities amounted to $340.3 million, down from $385.2 million as of December 31, 2022[45] - The Company's total debt as of June 30, 2023, was $2,417.5 million, a decrease from $2,423.6 million as of December 31, 2022[46] Cash Flow - Cash provided by operating activities for the six months ended June 30, 2023, was $227.5 million, slightly down from $241.1 million in 2022[23] - The company’s cash and cash equivalents increased to $955.1 million as of June 30, 2023, up from $768.7 million at the end of 2022, a rise of 24.3%[16] - Total cash, cash equivalents, and restricted cash at the end of June 30, 2023, was $957.1 million, compared to $1,167.6 million at the end of June 30, 2022[23] - The fair value of cash and cash equivalents was $850.3 million as of June 30, 2023, compared to $688.8 million as of December 31, 2022[72] Legal and Regulatory Matters - The company is currently involved in multiple legal disputes, including a lawsuit alleging unlawful gambling, which may impact its financial condition, although the exact impact is not yet estimable[83][85] - The Company has recorded a reserve for a lawsuit based on its best estimate outcome, with potential liabilities exceeding the current reserve[76] Acquisitions and Investments - The company entered into a definitive agreement to acquire Youda Games for an initial cash consideration of EUR 81.3 million, with a total maximum consideration of EUR 150 million[101] - The company’s net cash used in investing activities for the six months ended June 30, 2023, was $33.0 million, compared to $67.3 million in 2022[23] Derivative Contracts and Interest Rates - The Company had outstanding derivative contracts to purchase foreign currencies hedging approximately $183.0 million in future salary expenses as of June 30, 2023[66] - The aggregate fair value of the Company's interest rate swap agreements was an asset of $57.7 million as of June 30, 2023[65] - A hypothetical 100 basis point increase in interest rates would increase the company's interest expense by $8.6 million over a twelve-month period[160] - The company amended its interest rate swap agreements in June 2023, reducing the fixed interest rate from 0.9275% to 0.85% effective July 31, 2023[157]