Playtika Holding Corp. Reports Second Quarter 2022 Results
Adjusted EBITDA improved sequentially to $238.9 million
Average Daily Payer Conversion Increased to 3.2%
Casual Portfolio Revenue Grew 10.0% year-over-year and is now 53.3% of Total Revenue
Direct-to-Consumer Channel grew 14.2% year-over-year and is now 23.3% of Total Revenue
HERZLIYA, Israel, Aug. 4, 2022 /PRNewswire/ -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its second quarter for the period ending June 30, 2022.
Second Quarter 2022 Financial Highlights:
"We are proud of our performance in the second quarter in a challenging economic environment," said Robert Antokol, Chief Executive Officer of Playtika. "We maintained growth in key strategic areas including our Casual game portfolio and Direct-To-Consumer platforms, and demonstrated the resiliency of our business. Looking ahead to the second half, we are focused on the continued introduction of exciting new content for our existing portfolio of games and on our new game development initiatives as well"
"We continued to optimize our business during the second quarter as we focus on execution," said Craig Abrahams, President and Chief Financial Officer. "We took actions to improve our core operations and enhance product roadmaps, while adapting to maintain margin and strong free cash flow generation. We will continue to look for efficiency opportunities across our organization and capitalize on investments that position us for long-term sustainable growth."
New Game Developments
(1) Comprised of $351.5 million and $308.1 million for casual and casino themed games, respectively.
For the full year 2022 the company anticipates revenue within a range of $2.60 - 2.66 billion and Adjusted EBITDA within a range of $900 - $940 million.
Playtika management will host a conference call at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time) today to discuss the company's results. The conference call can be accessed via a webcast accessible at investors.playtika.com. A replay of the call will be available through the website one hour following the call and will be archived for one year.
Summary Operating Results of Playtika Holding Corp.
About Playtika Holding Corp.
Playtika?(NASDAQ:?PLTK) is a mobile gaming entertainment and technology market leader with a portfolio of multiple game titles. Founded in 2010,?Playtika?was among the first to offer free-to-play social games on social networks and, shortly after, on mobile platforms. Headquartered in?Herzliya,?Israel, and guided by a mission to entertain the world through infinite ways to play,?Playtika?has employees across various offices worldwide.
Forward Looking Information
In this press release, we make "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Further, statements that include words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "present," "preserve," "project," "pursue," "will," or "would," or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements.
Important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements include without limitation:
Additional factors that may cause future events and actual results, financial or otherwise, to differ, potentially materially, from those discussed in or implied by the forward-looking statements include the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur, and reported results should not be considered as an indication of future performance. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Except as required by law, we undertake no obligation to update any forward-looking statements for any reason to conform these statements to actual results or to changes in our expectations.
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure and should not be construed as an alternative to net income as an indicator of operating performance, nor as an alternative to cash flow provided by operating activities as a measure of liquidity, or any other performance measure in each case as determined in accordance with GAAP.
Below is a reconciliation of Adjusted EBITDA to net income, the closest GAAP financial measure. We define Adjusted EBITDA as net income before (i) interest expense, (ii) interest income, (iii) provision for income taxes, (iv) depreciation and amortization expense, (v) stock-based compensation, (vi) contingent consideration, (vii) acquisition and related expenses, (viii) expense under our long-term compensation plans, (ix) M&A related retention payments, and (x) certain other items, including impairments. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues.
We supplementally present Adjusted EBITDA and Adjusted EBITDA Margin because these are key operating measures used by our management to assess our financial performance. Adjusted EBITDA adjusts for items that we believe do not reflect the ongoing operating performance of our business, such as certain noncash items, unusual or infrequent items or items that change from period to period without any material relevance to our operating performance. Management believes Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors and analysts in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses Adjusted EBITDA and Adjusted EBITDA Margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against other peer companies using similar measures. We evaluate Adjusted EBITDA and Adjusted EBITDA Margin in conjunction with our results according to GAAP because we believe they provide investors and analysts a more complete understanding of factors and trends affecting our business than GAAP measures alone.
Adjusted EBITDA and Adjusted EBITDA Margin as calculated herein may not be comparable to similarly titled measures reported by other companies within the industry and are not determined in accordance with GAAP. Our presentation of Adjusted EBITDA and Adjusted EBITDA Margin should not be construed as an inference that our future results will be unaffected by unusual or unexpected items.