Playtika Holding Corp. Reports First Quarter 2021 Results
First Quarter Revenue Grew
Refinancing of Term Loan B in March to Drive Annualized Cash Savings of
Increasing Financial Outlook for 2021
HERZLIYA, Israel, May 11, 2021 (GLOBE NEWSWIRE) -- Playtika Holding Corp. (NASDAQ: PLTK) today released financial results for its first quarter results for the period ending March 31, 2021.
First quarter 2021 financial highlights:
- First quarter revenue was
$638.9 million compared to$534.2 million in the prior year period. - Net income was
$35.7 million compared to$35.8 million in the prior year period. - Adjusted EBITDA, a non-GAAP financial measure defined below, was
$258.0 million compared to$186.1 million in the prior year period. - Available liquidity, defined as our Cash and Cash Equivalents as of March 31, 2021, plus our undrawn revolving credit facility, is over
$1.5 billion .
“We kicked off 2021 with a very robust first quarter,” said Robert Antokol, Chief Executive Officer of Playtika. “Our Boost technology platform powers our best-in-class Live Operations, allowing Playtika to continually drive fresh content to our players. Our focus on data-driven game management, assisted by our impactful marketing campaigns, resulted in our impressive revenue growth. We are excited with our results and look forward to leveraging this success throughout the year.”
“Our business displayed excellent momentum in the first quarter, and we experienced strong performance across all parts of our company,” said Craig Abrahams, President and Chief Financial Officer. “We continue to innovate within our portfolio of game franchises and delivered excellent organic revenue growth with over
Highlights
- Casual portfolio grew revenue
30% year-over-year - Solitaire Grand Harvest grew revenue
60% year-over-year - Board Kings grew revenue
57% year-over-year - Bingo Blitz grew revenue
40% year-over-year
Financial Outlook
For the full year 2021 the company anticipates revenue of
Conference Call
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 the conference numbers below and also 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.
- Toll-free dial-in number: (833) 665-0587
- International dial-in number: (661) 407-1603
- Conference ID: 1166307
Summary Operating Results of Playtika Holding Corp.
| Three months ended March 31, | |||||||
| (in millions of dollars, except percentages, Average DPUs, and ARPDAU) | 2021 | 2020 | |||||
| Revenues | $ | 638.9 | $ | 534.2 | |||
| Total cost and expenses | $ | 508.6 | $ | 421.0 | |||
| Operating income | $ | 130.3 | $ | 113.2 | |||
| Net income | $ | 35.7 | $ | 35.8 | |||
| Adjusted EBITDA | $ | 258.0 | $ | 186.1 | |||
| Net income margin | 5.6 | % | 6.7 | % | |||
| Adjusted EBITDA margin | 40.4 | % | 34.8 | % | |||
| Non-financial performance metrics | |||||||
| Average DAUs | 10.4 | 11.6 | |||||
| Average DPUs (in thousands) | 296 | 272 | |||||
| Average Daily Payer Conversion | 2.8 | % | 2.3 | % | |||
| ARPDAU | $ | 0.68 | $ | 0.50 | |||
| Average MAUs | 31.4 | 37.1 | |||||
About Playtika Holding Corp.
Playtika Holding Corp. is a leading mobile gaming company and monetization platform with over 31 million monthly active users across a portfolio of games 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 over 3,700 employees in 19 offices worldwide including Tel-Aviv, London, Berlin, Vienna, Helsinki, Montreal, Chicago, Las Vegas, Santa Monica, Newport Beach, Sydney, Kiev, Bucharest, Minsk, Dnepr, and Vinnytsia.
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:
- our reliance on third-party platforms, such as the iOS App Store, Facebook, and Google Play Store, to distribute our games and collect revenues, and the risk that such platforms may adversely change their policies;
- our reliance on a limited number of games to generate the majority of our revenue;
- our reliance on a small percentage of total users to generate a majority of our revenue;
- our free-to-play business model, and the value of virtual items sold in our games, is highly dependent on how we manage the game revenues and pricing models;
- our inability to complete acquisitions and integrate any acquired businesses successfully could limit our growth or disrupt our plans and operations;
- we may be unable to successfully develop new games;
- our ability to compete in a highly competitive industry with low barriers to entry;
- we have significant indebtedness and are subject to the obligations and restrictive covenants under our debt instruments;
- the impact of the COVID-19 pandemic on our business and the economy as a whole;
- our controlled company status;
- legal or regulatory restrictions or proceedings could adversely impact our business and limit the growth of our operations;
- risks related to our international operations and ownership, including our significant operations in Israel and Belarus and the fact that our controlling stockholder is a Chinese-owned company;
- our reliance on key personnel;
- security breaches or other disruptions could compromise our information or our players’ information and expose us to liability; and
- our inability to protect our intellectual property and proprietary information could adversely impact our business.
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.
PLAYTIKA HOLDING CORP.
CONSOLIDATED BALANCE SHEETS
(In millions, except for per share data)
| March 31, | December 31, | ||||||
| 2021 | 2020 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 963.8 | $ | 520.1 | |||
| Short-term bank deposits | 50.0 | — | |||||
| Restricted cash | 2.6 | 3.5 | |||||
| Accounts receivable | 182.4 | 129.3 | |||||
| Prepaid expenses and other current assets | 97.2 | 101.6 | |||||
| Total current assets | 1,296.0 | 754.5 | |||||
| Property and equipment, net | 96.0 | 98.5 | |||||
| Operating lease right-of-use assets | 81.8 | 73.4 | |||||
| Intangible assets other than goodwill, net | 317.4 | 327.7 | |||||
| Goodwill | 479.4 | 484.8 | |||||
| Deferred tax assets, net | 26.2 | 28.5 | |||||
| Other non-current assets | 7.6 | 8.8 | |||||
| Total assets | $ | 2,304.4 | $ | 1,776.2 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
| Current liabilities | |||||||
| Current maturities of long-term debt | $ | 12.5 | $ | 104.6 | |||
| Accounts payable | 28.4 | 34.6 | |||||
| Operating lease liabilities, current | 17.2 | 16.4 | |||||
| Accrued expenses and other current liabilities | 364.4 | 484.8 | |||||
| Total current liabilities | 422.5 | 640.4 | |||||
| Long-term debt | 2,433.0 | 2,209.8 | |||||
| Employee related benefits | 18.5 | 16.1 | |||||
| Operating lease liabilities, long-term | 72.5 | 67.0 | |||||
| Deferred tax liabilities | 83.7 | 86.4 | |||||
| Total liabilities | 3,030.2 | 3,019.7 | |||||
| Commitments and contingencies (Note 10) | |||||||
| Stockholders' equity (deficit) | |||||||
| Common stock of US outstanding at March 31, 2021; 400.0 shares authorized and 391.1 shares issued and outstanding at December 31, 2020(1) | 4.1 | 3.9 | |||||
| Additional paid-in capital | 954.1 | 462.3 | |||||
| Accumulated other comprehensive income | 6.7 | 16.7 | |||||
| Accumulated deficit | (1,690.7 | ) | (1,726.4 | ) | |||
| Total stockholders' deficit | (725.8 | ) | (1,243.5 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 2,304.4 | $ | 1,776.2 | |||
(1) Prior period results have been adjusted to reflect the 400-for-1 stock split effected in January 2021
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
| Three months ended March 31, | |||||||
| 2021 | 2020 | ||||||
| (Unaudited) | |||||||
| Revenues | $ | 638.9 | $ | 534.2 | |||
| Costs and expenses | |||||||
| Cost of revenue | 183.0 | 165.9 | |||||
| Research and development | 85.2 | 60.8 | |||||
| Sales and marketing | 140.1 | 125.3 | |||||
| General and administrative | 100.3 | 69.0 | |||||
| Total costs and expenses | 508.6 | 421.0 | |||||
| Income from operations | 130.3 | 113.2 | |||||
| Interest expense and other, net | 75.7 | 58.3 | |||||
| Income before income taxes | 54.6 | 54.9 | |||||
| Provision for income taxes | 18.9 | 19.1 | |||||
| Net income | 35.7 | 35.8 | |||||
| Other comprehensive loss | |||||||
| Foreign currency translation | (9.9 | ) | (2.3 | ) | |||
| Change in fair value of derivatives | (0.1 | ) | — | ||||
| Total other comprehensive loss | (10.0 | ) | (2.3 | ) | |||
| Comprehensive income | $ | 25.7 | $ | 33.5 | |||
| Net income per share attributable to common stockholders, basic | $ | 0.09 | $ | 0.09 | |||
| Net income per share attributable to common stockholders, diluted | $ | 0.09 | $ | 0.09 | |||
| Weighted-average shares used in computing net income per share attributable to common stockholders, basic | 406.5 | 378.0 | |||||
| Weighted-average shares used in computing net income per share attributable to common stockholders, diluted | 409.5 | 378.0 | |||||
PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
| Three months ended March 31, | |||||||
| 2021 | 2020 | ||||||
| (Unaudited) | |||||||
| Cash flows from operating activities | $ | (56.4 | ) | $ | (48.0 | ) | |
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (7.5 | ) | (13.9 | ) | |||
| Capitalization of internal use software costs | (13.3 | ) | (7.1 | ) | |||
| Purchase of intangible assets | (3.3 | ) | (2.3 | ) | |||
| Short-term bank deposits | (50.0 | ) | — | ||||
| Other investing activities | 2.2 | — | |||||
| Net cash used in investing activities | (71.9 | ) | (23.3 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from bank borrowings, net | 880.7 | — | |||||
| Repayments on bank borrowings | (951.0 | ) | (64.6 | ) | |||
| Proceeds from issuance of unsecured notes, net | 176.9 | — | |||||
| Proceeds from issuance of common stock, net | 470.4 | — | |||||
| Net cash provided by (used in) financing activities | 577.0 | (64.6 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (5.9 | ) | 1.2 | ||||
| Net change in cash, cash equivalents and restricted cash | 442.8 |
Playtika Holding Corp.
NASDAQ:PLTKPLTK RankingsPLTK Latest NewsPLTK Stock Data
3.14B
49.45M
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14.02%
1.47%
Data Processing, Hosting, and Related Services
Information
United States of America
HERZLIYA PITUARCH
About PLTKplaytika captivates audiences with beautifully produced, highly immersive social games. we consider ourselves storytellers and artists, gamers and strategists. we pair art with science—sophisticated algorithms that deliver a pace and rhythm in each game and heighten the thrill of winning. whether players are looking for something that is funny or dramatic, playful or full of intrigue, playtika’s diverse portfolio of games will inspire them to play, stay and ultimately pay for a highly entertaining experience. playtika’s roots are in the social casino space. we were the first to introduce free-to-play casino-style games to social networks. (slotomania remains the highest grossing app on facebook and ios.) we are successfully applying our intuitive understanding of what players want and our mastery of marketing and monetization to additional categories of games, such as bingo and strategy games. our playtika studios are hives of creativity, with the independence and flexibility to inno
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