Playtika Holding (PLTK) Q2 2025 Earnings Call August 07, 2025 08:30 AM ET Speaker0Good day and thank you for standing by. Welcome to the Platika Q2 twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.You will then hear an automated message advising your hand is raised. Please be advised that today's con ...

PLAYTIKA HOLDING CORP. Second Quarter 2025 Results August 7, 2025 LEGAL DISCLAIMER Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the U.S. 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 presentation, including statements regarding our business strategy, plans and our objectives for future operations, are forward-looking statements. Furthe ...

Revenue of $696.0 million and Direct-to-Consumer (“DTC”) Revenue of $175.9 millionRevenue Decreased (1.4)% Sequentially and Increased 11.0% Year Over YearDTC Platforms Revenue Decreased (1.8)% Sequentially and Increased 1.3% Year Over Year HERZLIYA, Israel, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its second quarter for the period ending June 30, 2025. Financial Highlights Revenue of $696.0 million decreased (1.4)% sequentially and increase ...

Financial Data and Key Metrics Changes - Playtica achieved record revenue of over $700 million in Q1 2025, marking the highest quarterly revenue in the company's history, reflecting strong performance in mobile games [5] - Revenue increased by 8.6% sequentially and 8.4% year over year, while credit adjusted EBITDA was $167.3 million, down 9% sequentially and 9.9% year over year [15] - GAAP net income was $30.6 million, down 42.3% year over year [15] - Direct to consumer (D2C) business generated $179.2 million, up 2.6% sequentially and 4.5% year over year [15] Business Line Data and Key Metrics Changes - Bingo Blitz achieved record revenues, generating $162.4 million, up 2.1% sequentially and 3.1% year over year, driven by marketing initiatives like the American Idol campaign [21] - Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year over year, attributed to ongoing game economy issues [21][9] - Dice Dreams generated $78.6 million, up 124.5% sequentially, reflecting successful integration and strong execution [22] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased by 12.5% sequentially and 2.3% year over year to 9 million, while Average Daily Paying Users (DPU) increased by 15% sequentially and 26.2% year over year to 390,000 [26] - Average Revenue Per Daily Active User (ARPDAU) decreased by 2.2% sequentially but increased by 7.4% year over year to $0.87 [26] Company Strategy and Development Direction - The company is focusing on stabilizing Slotomania and launching new slot games, with plans to integrate renowned IGT slot titles into its platform [9][10] - Playtica aims to enhance its D2C business, targeting 30% of revenue from this segment, with several games performing above this mark [16] - The company is committed to strategic capital allocation to enhance financial profiles and capitalize on evolving mobile gaming dynamics [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Slotomania but emphasized efforts to stabilize the game and launch new titles to regain market share [33] - The company expects marketing expenses to decline sequentially in the coming quarters, which typically occurs after the first quarter [18][29] - Management reaffirmed guidance for the year, anticipating that declines in slot games will be offset by growth in casual titles [19] Other Important Information - Cost of revenue increased by 11.5% year over year, while operating expenses rose by 19.4%, primarily due to increased performance marketing spending [24] - Cash, cash equivalents, and short-term investments totaled approximately $514.3 million as of March 31 [25] Q&A Session Summary Question: Discussion on Disney Solitaire's marketing plans - Management expressed excitement about Disney Solitaire's strong launch and indicated that marketing expenses typically decline after Q1, balancing capital allocation across games with the best ROI [28][29] Question: Future of Slotomania and new slot game plans - Management acknowledged ongoing issues with Slotomania and emphasized the importance of stabilizing the game while also planning to launch a new slot game to regain market share [32][33] Question: D2C channel updates and overall mix - Management highlighted the importance of D2C as a significant growth opportunity and indicated readiness to adapt to market changes, emphasizing that D2C is already a part of their strategy [39][41]

Financial Data and Key Metrics Changes - Playtica achieved a historic milestone in Q1 2025, generating over $700 million in revenue, the highest quarterly revenue in the company's history, reflecting an 8.6% sequential increase and an 8.4% year-over-year increase [5][15] - Credit adjusted EBITDA was $167.3 million, down 9% sequentially and down 9.9% year over year, while GAAP net income was $30.6 million, down 42.3% year over year [15] - Direct-to-consumer (D2C) business generated $179.2 million, up 2.6% sequentially and 4.5% year over year, driven by Bingo Blitz, June's Journey, and Solitaire Grand Harvest [15][16] Business Line Data and Key Metrics Changes - Bingo Blitz achieved record revenues of $162.4 million, up 2.1% sequentially and 3.1% year over year, driven by marketing initiatives such as the American Idol campaign [19][20] - Slotomania's revenue was $111.8 million, down 5.5% sequentially and 17.4% year over year, with ongoing challenges leading to a decline in performance [21] - Dice Dreams generated $78.6 million, reflecting a 124.5% sequential increase due to successful integration and marketing efforts [22] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased 12.5% sequentially and 2.3% year over year to 9 million, while Average Revenue Per Daily Active User (ARPDAU) decreased 2.2% sequentially but increased 7.4% year over year to $0.87 [26] Company Strategy and Development Direction - The company is focusing on stabilizing Slotomania and launching new slot games, with plans to integrate renowned IGT slot titles into its platform [9][10] - Playtica is committed to enhancing its D2C business, targeting 30% of revenue from this segment, and believes it has significant growth potential [16][40] - The company is making strategic capital allocation decisions to enhance its financial profile and capitalize on evolving mobile gaming dynamics [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by Slotomania and emphasized the need for significant changes to stabilize the game [33] - The company expects marketing expenses to decline sequentially in the coming quarters, which typically occurs after the first quarter [18][29] - Management reaffirmed guidance for the year, anticipating that declines in slot games will be offset by growth in casual titles [19] Other Important Information - Cost of revenue increased 11.5% year over year, driven by revenue growth and increased amortization expenses from the acquisition of Superplay [24] - Operating expenses increased 19.4%, primarily due to increased performance marketing spending [24] - As of March 31, the company had approximately $514.3 million in cash, cash equivalents, and short-term investments [25] Q&A Session Summary Question: Discussion on Disney Solitaire's marketing plans - Management expressed excitement about Disney Solitaire's strong start and noted that Q1 typically has the highest marketing spend, which will decline sequentially [28][29] Question: Future of Slotomania and new slot game plans - Management acknowledged ongoing issues with Slotomania and emphasized the importance of stabilizing the game while also planning to launch a new slot game to regain market share [32][33] Question: D2C channel updates and overall mix - Management highlighted the importance of D2C for Playtica and expressed confidence in its growth potential, noting that the company is well-prepared for current market changes [39][41]

Financial Data and Key Metrics Changes - The company achieved record revenue of over $700 million in Q1 2025, marking the highest quarterly revenue in its history, reflecting the strength of its mobile games portfolio [5] - Revenue for the first quarter was $706 million, an 8.6% sequential increase and an 8.4% year-over-year increase [15] - Credit adjusted EBITDA was $167.3 million, down 9% sequentially and down 9.9% year-over-year [15] - GAAP net income was $30.6 million, down 42.3% year-over-year [15] - Direct-to-consumer (D2C) revenue reached $179.2 million, up 2.6% sequentially and 4.5% year-over-year [15] Business Line Data and Key Metrics Changes - Bingo Blitz achieved revenue of $162.4 million, up 2.1% sequentially and 3.1% year-over-year, driven by marketing initiatives [19] - Slotomania revenue was $111.8 million, down 5.5% sequentially and 17.4% year-over-year, indicating ongoing challenges [21] - Dice Dreams generated $78.6 million in revenue, reflecting a 124.5% sequential increase due to successful integration [22] - The D2C business is expected to grow, with many games performing above the targeted 30% revenue contribution from D2C [16] Market Data and Key Metrics Changes - Average Daily Users (DAU) increased by 12.5% sequentially and 2.3% year-over-year to 9 million [26] - Average Daily Pay Users (DPU) increased by 15% sequentially and 26.2% year-over-year to 390,000 [26] - Average Revenue Per Daily Active User (ARPDAU) decreased by 2.2% sequentially but increased by 7.4% year-over-year to $0.87 [26] Company Strategy and Development Direction - The company is focusing on stabilizing Slotomania while launching new slot games to regain market share [9][35] - There is a commitment to enhancing the D2C business, which is seen as a significant growth opportunity [40] - The company is prioritizing product investments and operational improvements to stabilize underperforming titles [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced by Slotomania and emphasized the need for significant changes to stabilize the game [34] - The company is optimistic about the growth potential of its casual game franchises and plans to continue investing in them [13] - Marketing expenses are expected to decline sequentially, which may help improve margins in the future [17] Other Important Information - The company has approximately $514.3 million in cash, cash equivalents, and short-term investments as of March 31 [25] - An agreement was made to extend the maturity of the revolving credit facility from March 2026 to September 2027 [26] Q&A Session Summary Question: Discussion on Disney Solitaire's marketing plans - Management expressed excitement about Disney Solitaire's strong launch and indicated that marketing expenses typically decline after Q1, balancing capital allocation across games with the best ROI [29][30] Question: Future of Slotomania and new slot game plans - Management acknowledged ongoing declines in Slotomania and emphasized the importance of stabilizing the game while also launching a new slot game to regain market share [33][34] Question: Updates on D2C initiatives and overall mix - Management highlighted the D2C business as a significant advantage and expressed confidence in its growth potential, indicating that they are well-prepared for current market changes [39][40]

Financial Performance - Revenue reached $706 million, showing an increase of 8.6% sequentially and 8.4% year-over-year[7] - GAAP Net Income was $306 million, a decrease of (42.3)% year-over-year[7] - Adjusted Net Income amounted to $362 million, increasing 34.1% sequentially but decreasing (39.6)% year-over-year[7] - Adjusted EBITDA was $1673 million, reflecting a decrease of (9.0)% sequentially and (9.9)% year-over-year[7] - The GAAP Net Income margin was 4.3%, compared to (2.6)% in Q4 2024 and 8.1% in Q1 2024[7] - Adjusted Net Income margin was 5.1%, compared to 4.2% in Q4 2024 and 9.2% in Q1 2024[7] - Adjusted EBITDA margin was 23.7%, compared to 28.3% in Q4 2024 and 28.5% in Q1 2024[7] Business Highlights - Average Daily Paying Users reached 390K, an increase of 15.0% sequentially and 26.2% year-over-year[8] - Average Payer Conversion was 4.3%, compared to 4.2% in Q4 2024 and 3.5% in Q1 2024[8] - Bingo Blitz revenue was $1624 million, increasing 2.1% sequentially and 3.1% year-over-year[8] - Slotomania revenue was $1118 million, decreasing (5.5)% sequentially and (17.4)% year-over-year[8] - Dice Dreams revenue was $786 million, increasing 124.5% sequentially compared to a partial quarter in Q4 2024[8]

Financial Performance - Playtika Holding Corp. reported revenue of $706.0 million for Q1 2025, representing an increase of 8.6% sequentially and 8.4% year over year [9][21] - Direct-to-Consumer (DTC) revenue reached $179.2 million, with a sequential increase of 2.6% and a year-over-year increase of 4.5% [9] - GAAP net income was $30.6 million, a decrease of 42.3% year over year, while adjusted net income was $36.2 million, reflecting a sequential increase of 34.1% but a year-over-year decrease of 39.6% [9][34] - Adjusted EBITDA for the quarter was $167.3 million, down 9.0% sequentially and 9.9% year over year [9][34] Operational Highlights - The average daily paying users (DPUs) increased to 390,000, marking a 15.0% sequential growth and 26.2% year-over-year growth [10] - Bingo Blitz, the company's largest title, generated revenue of $162.4 million, up 2.1% sequentially and 3.1% year over year [10] - Slotomania revenue decreased to $111.8 million, down 5.5% sequentially and 17.4% year over year [10] Capital Structure and Outlook - The company reaffirmed its revenue guidance for 2025, projecting between $2.80 billion and $2.85 billion, and adjusted EBITDA between $715 million and $740 million [6] - Playtika's Board of Directors declared a cash dividend of $0.10 per share, payable on July 7, 2025 [5] - The company entered into an agreement to extend the maturity of its revolving credit facility to September 2027, reducing the principal amount from $600 million to $550 million [7]

Group 1 - The new game "Regal Riches" will be launched on March 28, 2025, as part of the partnership between Playtika and IGT, enhancing the Slotomania experience for players [1][2] - Regal Riches is designed to provide an immersive experience with exclusive bonus games, a Wilds meter, and opportunities to win Mega, Major, or Minor Free Games [3] - Slotomania is recognized as the world's 1 free-to-play slots game, featuring a wide variety of high-quality slot games and a large global player community [4][6] Group 2 - Playtika, founded in 2010, is a leader in mobile gaming entertainment and technology, with a mission to entertain through diverse gaming experiences [5] - The company has a strong presence in the market, being the top free-to-play slots game by monthly downloads and active users as of December 31, 2024 [6]

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]