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:
- Second quarter revenue was $659.6
million(1) compared to $659.2 million in the prior year period.
- Net income was $36.4 million
compared to $90.0 million in the
prior year period.
- Adjusted EBITDA, a non-GAAP financial measure defined below,
was $238.9 million compared to
$264.4 million in the prior year
period.
- Our cash and cash equivalents and short-term bank deposits
totaled $1,241.1 million as of
June 30, 2022 with $600 million in additional borrowing capacity
pursuant to our Revolving Credit Facility, resulting in over
$1.8 billion of available
liquidity.
"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."
Highlights
- Casual portfolio grew revenue 10.0% year-over-year, comprising
53.3% of total revenue
- Average Daily Payer Conversion increased to 3.2%, up from 2.9%
in Q2'21
- Average DPUs increased 3.5% year-over-year
- Direct-to-Consumer channel grew 14.2% year-over-year and is now
23.3% of total revenue
- Junes Journey grew revenue 34.2% year-over-year
- Solitaire Grand Harvest grew revenue 6.3% year-over-year
New Game Developments
- Merge Stories marketing campaign planned for Q3'22
-
- Innovative hybrid game that combines the core merge game
mechanic with casual build and battle elements
- Built by our Jelly Button studio, creators of Board
Kings
- Two titles in soft-launch testing through the second-half of
2022
(1) Comprised of $351.5
million and $308.1 million for
casual and casino themed games, respectively.
Financial Outlook
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.
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 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.
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
(in millions of
dollars, except percentages, Average DPUs, and
ARPDAU)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
$
659.6
|
|
$
659.2
|
|
$
1,336.5
|
|
$
1,298.1
|
Total cost and
expenses
|
$
568.3
|
|
$
493.8
|
|
$
1,124.8
|
|
$
1,002.4
|
Operating
income
|
$
91.3
|
|
$
165.4
|
|
$
211.7
|
|
$
295.7
|
Net
income
|
$
36.4
|
|
$
90.0
|
|
$
119.6
|
|
$
125.7
|
Adjusted
EBITDA
|
$
238.9
|
|
$
264.4
|
|
$
459.4
|
|
$
522.4
|
Net income
margin
|
5.5 %
|
|
13.7 %
|
|
8.9 %
|
|
9.7 %
|
Adjusted EBITDA
margin
|
36.2 %
|
|
40.1 %
|
|
34.4 %
|
|
40.2 %
|
|
|
|
|
|
|
|
|
Non-financial
performance metrics
|
|
|
|
|
|
|
|
Average
DAUs
|
9.8
|
|
10.4
|
|
10.0
|
|
10.4
|
Average DPUs (in
thousands)
|
310
|
|
300
|
|
317
|
|
298
|
Average Daily Payer
Conversion
|
3.2 %
|
|
2.9 %
|
|
3.2 %
|
|
2.9 %
|
ARPDAU
|
$
0.74
|
|
$
0.70
|
|
$
0.74
|
|
$
0.69
|
Average
MAUs
|
35.3
|
|
36.1
|
|
33.5
|
|
33.7
|
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:
- 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, Ukraine 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)
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
1,165.8
|
|
$
1,017.0
|
Short-term bank
deposits
|
75.3
|
|
100.1
|
Restricted
cash
|
1.8
|
|
2.0
|
Accounts
receivable
|
128.5
|
|
143.7
|
Prepaid expenses and
other current assets
|
115.4
|
|
72.9
|
Total current
assets
|
1,486.8
|
|
1,335.7
|
Property and equipment,
net
|
110.9
|
|
103.3
|
Operating lease
right-of-use assets
|
108.8
|
|
89.4
|
Intangible assets other
than goodwill, net
|
394.9
|
|
417.3
|
Goodwill
|
809.8
|
|
788.1
|
Deferred tax assets,
net
|
42.4
|
|
38.3
|
Investments in
unconsolidated entities
|
22.8
|
|
17.8
|
Other non-current
assets
|
29.8
|
|
13.4
|
Total
assets
|
$
3,006.2
|
|
$
2,803.3
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Current
liabilities
|
|
|
|
Current maturities of
long-term debt
|
$
12.4
|
|
$
12.2
|
Accounts
payable
|
49.3
|
|
45.7
|
Operating lease
liabilities, current
|
24.3
|
|
17.2
|
Accrued expenses and
other current liabilities
|
530.4
|
|
494.6
|
Total current
liabilities
|
616.4
|
|
569.7
|
Long-term
debt
|
2,417.3
|
|
2,422.9
|
Contingent
consideration
|
11.4
|
|
28.7
|
Employee related
benefits and other long-term liabilities
|
3.0
|
|
23.7
|
Operating lease
liabilities, long-term
|
87.8
|
|
82.3
|
Deferred tax
liabilities
|
54.4
|
|
53.7
|
Total
liabilities
|
3,190.3
|
|
3,181.0
|
Commitments and
contingencies
|
|
|
|
Stockholders' equity
(deficit)
|
|
|
|
Common stock of $0.01
par value; 1,600.0 shares authorized; 412.4 and 411.1 shares issued
and outstanding at June 30, 2022 and December 31, 2021,
respectively
|
4.1
|
|
4.1
|
Additional paid-in
capital
|
1,107.4
|
|
1,032.9
|
Accumulated other
comprehensive income
|
2.7
|
|
3.2
|
Accumulated
deficit
|
(1,298.3)
|
|
(1,417.9)
|
Total stockholders'
deficit
|
(184.1)
|
|
(377.7)
|
Total liabilities
and stockholders' deficit
|
$
3,006.2
|
|
$
2,803.3
|
PLAYTIKA HOLDING
CORP.
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
(In millions, except
for per share data)
|
(Unaudited)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues
|
$
659.6
|
|
$
659.2
|
|
$
1,336.5
|
|
$
1,298.1
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of
revenue
|
186.1
|
|
183.9
|
|
373.0
|
|
366.9
|
Research and
development
|
125.2
|
|
91.8
|
|
237.9
|
|
177.0
|
Sales and
marketing
|
151.8
|
|
146.5
|
|
331.5
|
|
286.6
|
General and
administrative
|
105.2
|
|
71.6
|
|
182.4
|
|
171.9
|
Total costs and
expenses
|
568.3
|
|
493.8
|
|
1,124.8
|
|
1,002.4
|
Income from
operations
|
91.3
|
|
165.4
|
|
211.7
|
|
295.7
|
Interest expense and
other, net
|
22.4
|
|
24.0
|
|
49.9
|
|
99.7
|
Income before income
taxes
|
68.9
|
|
141.4
|
|
161.8
|
|
196.0
|
Provision for income
taxes
|
32.5
|
|
51.4
|
|
42.2
|
|
70.3
|
Net
income
|
36.4
|
|
90.0
|
|
119.6
|
|
125.7
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation
|
(10.0)
|
|
2.8
|
|
(13.3)
|
|
(7.1)
|
Change in fair value
of derivatives
|
(5.9)
|
|
(1.6)
|
|
12.8
|
|
(1.7)
|
Total other
comprehensive income (loss)
|
(15.9)
|
|
1.2
|
|
(0.5)
|
|
(8.8)
|
Comprehensive
income
|
$
20.5
|
|
$
91.2
|
|
$
119.1
|
|
$
116.9
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stockholders, basic
|
$
0.09
|
|
$
0.22
|
|
$
0.29
|
|
$
0.31
|
Net income per share
attributable to common stockholders, diluted
|
$
0.09
|
|
$
0.22
|
|
$
0.29
|
|
$
0.31
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, basic
|
412.4
|
|
409.6
|
|
412.2
|
|
408.1
|
Weighted-average
shares used in computing net income per share attributable to
common stockholders, diluted
|
412.8
|
|
411.7
|
|
412.8
|
|
410.6
|
PLAYTIKA HOLDING
CORP.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
$
241.1
|
|
$
189.9
|
Cash flows from
investing activities
|
|
|
|
Purchase of property
and equipment
|
(29.5)
|
|
(20.2)
|
Capitalization of
internal use software costs
|
(23.7)
|
|
(23.9)
|
Purchase of intangible
assets
|
(4.0)
|
|
(6.6)
|
Short-term bank
deposits
|
24.8
|
|
(50.0)
|
Payments for business
combination, net of cash acquired
|
(29.9)
|
|
—
|
Other investing
activities
|
(5.0)
|
|
2.1
|
Net cash used in
investing activities
|
(67.3)
|
|
(98.6)
|
Cash flows from
financing activities
|
|
|
|
Proceeds from bank
borrowings, net
|
—
|
|
887.7
|
Repayments on bank
borrowings
|
(9.5)
|
|
(955.8)
|
Proceeds from issuance
of unsecured notes
|
—
|
|
178.9
|
Proceeds from issuance
of common stock, net
|
—
|
|
470.4
|
Payment of debt
issuance costs
|
—
|
|
(10.5)
|
Payment of tax
withholdings on stock-based payments
|
(2.1)
|
|
—
|
Net cash provided by
(used in) financing activities
|
(11.6)
|
|
570.7
|
Effect of exchange
rate changes on cash and cash equivalents
|
(13.6)
|
|
(3.2)
|
Net change in cash,
cash equivalents and restricted cash
|
148.6
|
|
658.8
|
Cash, cash
equivalents and restricted cash at the beginning of the
period
|
1,019.0
|
|
523.6
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
$
1,167.6
|
|
$
1,182.4
|
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.
RECONCILIATION OF
NET INCOME TO ADJUSTED EBITDA
|
(In
millions)
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
income
|
$
36.4
|
|
$
90.0
|
|
$
119.6
|
|
$
125.7
|
Provision for income
taxes
|
32.5
|
|
51.4
|
|
42.2
|
|
70.3
|
Interest expense and
other, net
|
22.4
|
|
24.0
|
|
49.9
|
|
99.7
|
Depreciation and
amortization
|
42.6
|
|
33.3
|
|
82.1
|
|
66.5
|
EBITDA
|
133.9
|
|
198.7
|
|
293.8
|
|
362.2
|
Stock-based
compensation(1)
|
35.4
|
|
25.5
|
|
75.2
|
|
49.8
|
Contingent
consideration
|
20.3
|
|
—
|
|
(2.7)
|
|
—
|
Long-term cash
compensation(2)
|
28.0
|
|
30.2
|
|
52.9
|
|
60.0
|
Acquisition and
related expenses(3)
|
4.6
|
|
6.3
|
|
13.6
|
|
42.0
|
M&A related
retention payments(4)
|
9.4
|
|
3.7
|
|
7.5
|
|
6.8
|
Other one-time
items(5)
|
7.3
|
|
—
|
|
19.1
|
|
1.6
|
Adjusted
EBITDA
|
$
238.9
|
|
$
264.4
|
|
$
459.4
|
|
$
522.4
|
Net income
margin
|
5.5 %
|
|
13.7 %
|
|
8.9 %
|
|
9.7 %
|
Adjusted EBITDA
margin
|
36.2 %
|
|
40.1 %
|
|
34.4 %
|
|
40.2 %
|
_________
(1)
|
Reflects, for the three
and six months ended June 30, 2022 and 2021, stock-based
compensation expense related to the issuance of equity awards to
certain of our employees.
|
(2)
|
Includes expenses
recognized for grants of annual cash awards to employees pursuant
to our Retention Plans, which awards are incremental to salary and
bonus payments, and which plans expire in 2024. For more
information, see notes to our consolidated financial
statements.
|
(3)
|
Amounts for the three
and six months ended June 30, 2022 and the three months ended
June 30, 2021, primarily relates to expenses incurred by the
Company in connection with the evaluation of strategic alternatives
for the Company. Amount for the six months ended June 30, 2021
primarily relates to bonus expenses paid as a result of the
successful initial public offering of the Company's stock in
January 2021.
|
(4)
|
Includes retention
awards to key individuals associated with acquired companies as an
incentive to retain those individuals on a long-term basis. The
income amount for the three and six months ended June 30, 2022
primarily relates to the reduction of contingent consideration
payable to employees of the Company that were also selling
Shareholders of Reworks. This portion of the contingent
consideration is being accounted for as an M&A retention
payment to these employees, with changes in the amounts recognized
as compensation expense.
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(5)
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Amounts for the three
and six months ended June 30, 2022, consists of $1.5 million
and $10.3 million, respectively, incurred by the Company for
severance and $1.0 million and $4.0 million, respectively, incurred
by the Company for relocation and support provided to employees due
to the war in Ukraine. Amounts also include $3.4 million incurred
in the second quarter of 2022 related to the recently announced
restructuring.
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content:https://www.prnewswire.com/news-releases/playtika-holding-corp-reports-second-quarter-2022-results-301599721.html
SOURCE Playtika