Playtika Holding Corp. Delivers Strong Q4 and Full Year 2023 Results
Playtika Holding Corp. (NASDAQ: PLTK) announced its financial outcomes for the fourth quarter and the full fiscal year ending December 31, 2023. The company also introduced a new capital allocation strategy and initiated a quarterly dividend, showcasing confidence in its financial stability and commitment to shareholder returns.
Capital Allocation Strategy Highlights:
- Introduction of a quarterly dividend of $0.10 per share, subject to market conditions and board approval.
- Plans to allocate $600 million to $1.2 billion towards mergers and acquisitions (M&A) over the next three years.
- Potential share repurchase program being explored to further enhance shareholder value.
Fourth Quarter 2023 Financial Highlights:
- Revenue marked at $637.9 million, witnessing a 1.2% increase sequentially and a 1.1% rise year-over-year.
- DTC platforms revenue reached $161.6 million, up by 0.4% sequentially and 7.6% year-over-year.
- Net income was reported at $37.3 million, a slight sequential decrease of 1.6% and a 57.4% drop year-over-year.
- Credit Adjusted EBITDA stood at $188.9 million, decreasing by 8.1% sequentially and 6.8% year-over-year.
- Cash and cash equivalents totaled $1,029.7 million as of December 31, 2023.
FY2023 Financial Summary:
- Annual revenue was $2,567.0 million compared to $2,615.5 million in the previous year.
- DTC platforms revenue rose to $639.4 million from $606.9 million.
- Net income for the year was $235.0 million, down from $275.3 million in the prior year.
- Annual Credit Adjusted EBITDA increased to $832.2 million from $805.1 million.
- Free Cash Flow for the year reached $436.4 million, up from $383.7 million.
Strategic Alternatives Process Update:
Given the uncertain geopolitical climate, especially in Israel and Ukraine, Playtika’s board has decided to temporarily pause the strategic alternatives evaluation process to focus on the company’s core growth and operational efficiency.
CEO and CFO Statements:
Robert Antokol, CEO, emphasized the company’s efficiency and streamlining operations adapting to mobile gaming’s changing dynamics. He mentioned that 2024 would focus on reinvestment and strategic M&A opportunities.
Craig Abrahams, CFO, highlighted the new capital allocation strategy, including initiating dividends and earmarking substantial funds for M&A, demonstrating Playtika’s strong position to drive industry consolidation.
Selected Operational Metrics:
- Average Daily Paying Users (DPUs) were 306K, up by 2.3% sequentially but down by 2.2% year-over-year.
- Average DPU conversion was 3.5%, slightly lower than the previous quarter and on par with Q4 of the prior year.
- Revenue growth was seen in casual games by 5.5% year-over-year, while social casino-themed games experienced a minor decline.
Financial Outlook for FY2024:
For the upcoming fiscal year 2024, Playtika forecasts revenue between $2.520 billion and $2.620 billion, with Credit Adjusted EBITDA projected between $730 million and $770 million. Capital expenditures are expected to range between $110 million and $115 million.
Initiation of Quarterly Dividend:
Reflecting on its solid financial standing and commitment to enhancing shareholder value, Playtika has declared a quarterly dividend of $0.10 per share, payable on April 5, 2024, to stockholders of record as of March 22, 2024. This move signifies an intention to maintain a regular dividend payout, dependent on market conditions and board discretion.
About Playtika Holding Corp.
Playtika Holding Corp., headquartered in Herzliya, Israel, is a leading entity in the mobile gaming entertainment and technology sector, boasting an impressive portfolio of game titles. Since its inception in 2010, Playtika has been at the forefront of offering innovative free-to-play social games on various platforms. With a mission to entertain the world through infinite ways to play, Playtika maintains a global presence with offices worldwide.
This announcement includes forward-looking statements subject to risks, uncertainties, and assumptions. Actual results could significantly vary due to various factors, including market conditions, global financial stability, and geopolitical events. For a detailed discussion on potential risks and uncertainties, refer to Playtika’s filings with the Securities and Exchange Commission.
Playtika’s continued growth, strategic planning, and focus on shareholder value underscore its robust performance in a competitive industry. With a clear vision for the future and a solid financial foundation, Playtika is poised for continued success and industry leadership.
