Home NewsCasino Playtika announces a restructured plan following a further drop in earnings

Playtika announces a restructured plan following a further drop in earnings

by
49 views 3 minutes read


Playtika is committed to restructuring despite a drop of double digits in EBITDA adjusted and net profit at the beginning of 2024.

Playtika’s financial report for the quarter ending 31 March shows revenue of $651,2m. The revenue was up by 2.1% compared to the last quarter of 2023 and down only 0.8% if you compare it with previous years. Revenue at mobile gaming giant dropped 1.9% last year and profits by 17.9%.

Playtika, a company based in Israel, has released promising numbers for its Direct-to-Consumer (DTC), segment during Q1 of 2024. DTC platforms generated revenues of $171.5m. This was an increase of 6.1% in a sequential basis and 13.2% on a year-on-year basis.

Playtika has not confirmed revenue generated by third parties. However, despite the 4% decline in 2023 this segment was still its biggest. The NASDAQ group saw its overall performance decline by 4% last year. Since 2022, Playtika’s revenue has not been able to grow faster than the outgoings.

The average daily payment of 309,000 users decreased 5.2% from the previous year. The average conversion rate of payers was 3.5%, which is flat with the previous quarter. It’s also down from the 3.6% recorded in the period prior to this year.

Playtika sales and marketing boom

Playtika’s net profit was $53,0m. This is down 36.9% on an annual basis. This figure, however, was 42.1% higher sequentially.

Sales and Marketing grew almost $50m (to $190,4m) while the cost of revenue decreased to $177.0m. Costs and expenses totaled $553.1m, an increase of 9.9%.

The credit-adjusted EBITDA, which was $185.6m in 2016, decreased 16.7% from the previous year and 1.7% on a sequential basis.

Playtika anticipates that revenue for the entire year 2024 will be in the range previously stated of $2.52bn to $2.622bn. The credit-adjusted EBITDA will still fall within the range $730m-$770m. Capital expenditures are expected to be between $110m and 115m.

Playtika’s CEO supports restructuring plan

Robert Antokol is Playtika’s Chief Executive Officer. He said that the company has taken steps to get back to growth.

Antokol said, “We’re committed to executing and building on the operational advances we have made.” The actions that we’re taking, such as restructuring our executive teams and streamlining the leadership structure, will allow us to get back to growing in mobile gaming. It improves the decision-making process and creates potential to increase value for both our players and investors.”

Playtika, meanwhile, has announced a dividend in cash of $0.10 for each share of its outstanding common stock payable on July 20, 2024.

The board of Playtika has also authorized a stock purchase programme up to $150m in Playtika common stock. This programme will allow the company to counteract the dilutive effect of equity awards.

Craig Abrahams said, “Our D2C businesses continue to be strong, due in part to our focus on retention of players and their longevity within our games.”

Our capital allocation policies are consistent with the first share purchase authorisation. It is a sign of our commitment to deliver shareholder value.

Playtika has added assets to its portfolio in the last year. Innplay Labs was acquired by Playtika for $300.0m in September 2023. It closed the purchase of Azerion’s Youda Games content portfolio in August.

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts

Newsletter