Playtika Abandons Sale Plans and Opts to Remain Independent
Playtika Holding announced its board decided to remain an independent publicly traded company after concluding a strategic review. The gaming firm also reported strong third-quarter results, beating revenue expectations.
Playtika Holding has announced that its board of directors has concluded its strategic alternatives review, deciding that the company will remain an independent publicly traded entity. According to the board, this course of action places the company in the optimal position to generate long-term value for its shareholders. The market responded positively to the news, pushing the stock higher in pre-market trading on Nasdaq.
Approximately six months ago, Playtika engaged Morgan Stanley as a financial advisor to explore ways to unlock shareholder value, a move widely interpreted as an attempt to find a buyer. However, the review has concluded without a transaction for the second time in the company's history. Led by co-founder Robert Antokol, Playtika develops mobile casual and casino games. Several years ago, the company acquired Israeli-based SuperPlay through a deal featuring an earn-out mechanism tied to performance milestones. The success of SuperPlay ultimately required Playtika to pay a significantly higher acquisition price.
Playtika's stock hit an all-time low last week before staging a modest recovery in recent days, trading at a market capitalization of $807 million prior to the pre-market uptick. The company surpassed third-quarter consensus estimates, posting revenues of approximately $674 million, nearly unchanged year-over-year compared to market expectations of a 1.1% decline. Direct-to-consumer (DTC) revenues, a key growth engine bypassing app stores, surged 31.4% compared to the same period last year, though they softened slightly from the previous quarter.
GAAP net income for the quarter reached $40.4 million, marking a 3.3% increase year-over-year, while adjusted EBITDA jumped 15.9% to $252 million. Playtika concluded the quarter with $595 million in cash and cash equivalents and reaffirmed its full-year guidance, projecting revenues between $2.75 billion and $2.85 billion, and adjusted EBITDA ranging from $750 million to $790 million. Operational metrics presented a mixed picture: while the average daily paying users decreased, the average conversion rate of players into paying users increased.
Following the completion of the strategic review, CEO Robert Antokol stated:
"With the completion of our strategic alternatives review, we are moving forward as an independent company. Our third-quarter results reflect what gives Playtika resilience, stability, and staying power: loyal players and games built for long-term success."
Antokol added that SuperPlay continued to deliver strong year-over-year growth, highlighted by an 88% surge in Disney Solitaire, while June's Journey achieved double-digit growth in its ninth year of operation.
Chief Financial Officer Craig Abrahams noted that the company is successfully executing its annual financial plan, reducing marketing expenses as planned in the third quarter and driving a record adjusted EBITDA. Management emphasized its ongoing commitment to strict financial discipline and balance sheet strengthening.
