Playtika Holding (PLTK) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Company Participants Tae Lee - SVP - Corporate Finance & Investor RelationsRobert Antokol - CO-Founder, Chairman & CEOCraig Abrahams - President & CFODoug Creutz - Managing DirectorMatthew Cost - Executive Director, Equity ResearchAlbert Kim - Equity Research Associate Operator Good day, and thank you for standing by. Welcome to the Playtica Q1 twenty twenty five Earnings Call. At this time, all participants are in listen only mode. Afte ...

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 - 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]

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Playtika Holding Corp. (NASDAQ:PLTK) Q4 2024 Earnings Call Transcript February 27, 2025 8:30 AM ET Company Participants Tae Lee - Investor Relations Robert Antokol - Chief Executive Officer and Chairperson of the Board Craig Abrahams - President and Chief Financial Officer Conference Call Participants Clark Lampen - BTIG Arthur Chu - Bank of America Eric Sheridan - Goldman Sachs Matt Cost - Morgan Stanley Colin Sebastian - Baird Eric Handler - ROTH Capital Aaron Lee - Macquarie Operator Good day and thank y ...