Playtika Holding Corp. (PLTK) Bundle
A Brief History of PLTK
PLTK, a prominent player in the mobile gaming industry, has seen significant developments leading into 2024. The company has focused on expanding its portfolio and enhancing its operational efficiency, which has been reflected in its financial metrics.
Financial Performance Overview
As of September 30, 2024, PLTK reported revenues of $620.8 million for the third quarter, a slight decrease from $630.1 million during the same period in 2023. For the nine months ended September 30, 2024, total revenues were $1.899 billion, compared to $1.929 billion in 2023, marking a year-over-year decline of $30.1 million. This decline was partially attributed to reduced monetization despite incremental revenues from acquired studios.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenues | $620.8 million | $630.1 million | $1.899 billion | $1.929 billion |
| Net Income | $39.3 million | $37.9 million | $178.9 million | $197.7 million |
| Operating Income | $97.5 million | $90.0 million | $336.3 million | $381.6 million |
| Total Costs and Expenses | $523.3 million | $540.1 million | $1.562 billion | $1.547 billion |
Stock Performance and Shareholder Equity
As of September 30, 2024, PLTK's total stockholders' equity was reported at $(98.0) million, with total shares outstanding at 372.6 million. The company declared cash dividends of $0.10 per share in both Q3 2024 and 2023, totaling $37.3 million and $37.2 million, respectively.
| Shareholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $(98.0) million | $(221.5) million |
| Cash Dividends Declared | $37.3 million | $37.1 million |
Debt and Liquidity Position
PLTK's total debt as of September 30, 2024, stood at $2.433 billion, comprising a $1.9 billion senior secured term loan and $600 million in senior notes. The company maintained a strong liquidity position with cash and cash equivalents totaling $1.201 billion, reflecting a solid operational cash flow of $337.0 million for the nine months ended September 30, 2024.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt | $2.433 billion | $2.416 billion |
| Cash and Cash Equivalents | $1.201 billion | $1.030 billion |
Market Trends and Strategic Initiatives
In 2024, PLTK has focused on expanding its gaming portfolio through acquisitions, notably with the addition of new studios, which has contributed to its revenue diversification. The company has also implemented cost control measures that have resulted in a decrease in total costs and expenses, aligning with its strategy to enhance profitability.
Operating Metrics
As of September 30, 2024, PLTK reported an average of 7.6 million daily active users (DAUs) and 301,000 daily paying users (DPUs). The average revenue per daily active user (ARPDAU) was calculated at $0.89, reflecting a 10-cent increase compared to the previous year’s average of $0.81.
| Operating Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Average DAUs | 7.6 million | 8.4 million |
| Average DPUs | 301,000 | 299,000 |
| ARPDAU | $0.89 | $0.81 |
PLTK's strategic focus and operational adjustments have positioned it to navigate the competitive landscape of mobile gaming effectively as it progresses through 2024.
A Who Owns Playtika Holding Corp. (PLTK)
Major Shareholders
As of 2024, the ownership structure of Playtika Holding Corp. (PLTK) includes several major shareholders:
- Playtika Holding Corp. is primarily owned by institutional investors, with approximately 82% of shares held by institutions.
- Notable institutional shareholders include:
| Institution | Percentage of Ownership |
|---|---|
| The Vanguard Group, Inc. | 9.5% |
| BlackRock, Inc. | 8.9% |
| State Street Corporation | 7.3% |
| FMR LLC (Fidelity) | 5.6% |
| Invesco Ltd. | 4.1% |
Executive Ownership
Executive officers and directors also hold a significant portion of the shares:
- As of September 30, 2024, executives and directors collectively own approximately 5% of the total shares.
- The CEO, Robert Antokol, holds approximately 2.1% of the shares.
Recent Stock Activity
In the third quarter of 2024, Playtika reported:
- Stock Price: $11.17 per share as of September 30, 2024.
- Market Capitalization: Approximately $4.5 billion.
Key Financial Information
Playtika's financial performance has shown the following metrics for the nine months ended September 30, 2024:
| Metric | Value (in millions) |
|---|---|
| Revenues | $1,899.0 |
| Net Income | $178.9 |
| Operating Income | $336.3 |
| Credit Adjusted EBITDA | $573.8 |
Debt and Liquidity Position
As of September 30, 2024, Playtika's debt structure is as follows:
| Debt Type | Book Value (in millions) | Face Value (in millions) |
|---|---|---|
| Term Loan | $1,808.5 | $1,833.5 |
| Senior Notes | $594.4 | $600.0 |
| Total Debt | $2,402.9 | $2,433.5 |
Playtika maintains strong liquidity with cash and cash equivalents totaling $1,201.7 million as of September 30, 2024 .
Playtika Holding Corp. (PLTK) Mission Statement
Overview
Playtika Holding Corp. aims to deliver innovative and engaging gaming experiences to a global audience. The company's mission centers around creating high-quality social games that foster community and connection among players.
Financial Performance
As of September 30, 2024, Playtika reported revenues of $620.8 million for the third quarter, slightly down from $630.1 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues were $1.899 billion, compared to $1.929 billion during the same period in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $620.8 million | $630.1 million | $1.899 billion | $1.929 billion |
| Net Income | $39.3 million | $37.9 million | $178.9 million | $197.7 million |
| Operating Income | $97.5 million | $90.0 million | $336.3 million | $381.6 million |
| Credit Adjusted EBITDA | $197.2 million | $205.6 million | $573.8 million | $643.3 million |
User Engagement Metrics
Playtika also tracks various user engagement metrics, which are critical to its mission of fostering community within its gaming platforms. The average Daily Active Users (DAUs) for Q3 2024 was 7.6 million, down from 8.4 million in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average DAUs | 7.6 million | 8.4 million |
| Average Daily Paying Users (DPUs) | 301,000 | 299,000 |
| Average Revenue per Daily Active User (ARPDAU) | $0.89 | $0.81 |
| Average Monthly Active Users (MAUs) | 26.4 million | 28.4 million |
Market Position and Strategic Goals
Playtika's strategic goals include expanding its portfolio of games while enhancing user experiences through innovative features and community-building initiatives. The company continues to invest in research and development, with expenses amounting to $99.2 million in Q3 2024, slightly reduced from $102.2 million in Q3 2023.
Cost Structure
The total costs and expenses for Q3 2024 were $523.3 million, compared to $540.1 million in Q3 2023. This reduction reflects Playtika's ongoing efforts to optimize its operations and improve profitability.
| Cost Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $168.1 million | $173.9 million |
| Sales and Marketing | $149.9 million | $142.8 million |
| General and Administrative | $76.8 million | $79.6 million |
| Impairment Charges | $29.3 million | $41.6 million |
Liquidity and Capital Resources
As of September 30, 2024, Playtika's cash and cash equivalents totaled $1.2017 billion, reflecting a solid liquidity position to support ongoing operations and strategic initiatives. The company also has a revolving credit facility with $600 million of additional borrowing capacity.
Dividends
In 2024, Playtika declared cash dividends of $0.10 per share on multiple occasions, totaling approximately $37.3 million recorded in accrued expenses as of September 30, 2024.
How Playtika Holding Corp. (PLTK) Works
Business Model
Playtika Holding Corp. operates as a leading mobile gaming company, specializing in free-to-play games. Their business model primarily relies on in-game purchases and advertising revenues. The company develops and publishes a diverse portfolio of social casino games, which are monetized through the sale of virtual goods.
Financial Performance
As of September 30, 2024, Playtika reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenues | $620.8 million | $630.1 million | $1,899.0 million | $1,929.1 million |
| Total Cost and Expenses | $523.3 million | $540.1 million | $1,562.7 million | $1,547.5 million |
| Operating Income | $97.5 million | $90.0 million | $336.3 million | $381.6 million |
| Net Income | $39.3 million | $37.9 million | $178.9 million | $197.7 million |
| Credit Adjusted EBITDA | $197.2 million | $205.6 million | $573.8 million | $643.3 million |
User Engagement Metrics
Playtika tracks several key performance indicators to gauge user engagement:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Average Daily Active Users (DAUs) | 7.6 million | 8.4 million | 8.1 million | 8.7 million |
| Average Daily Paying Users (DPUs) | 301,000 | 299,000 | 303,000 | 311,000 |
| Average Revenue per Daily Active User (ARPDAU) | $0.89 | $0.81 | $0.85 | $0.81 |
| Average Monthly Active Users (MAUs) | 26.4 million | 28.4 million | 29.0 million | 29.0 million |
| Average Daily Payer Conversion Rate | 4.0% | 3.6% | 3.7% | 3.6% |
Liquidity and Capital Resources
As of September 30, 2024, Playtika's liquidity position included:
- Cash and Cash Equivalents: $1,201.7 million
- Short-term Investments: $55.8 million
- Revolving Credit Facility Borrowing Capacity: $600 million
Debt Structure
Playtika's long-term debt obligations include:
| Debt Type | Book Value (as of September 30, 2024) | Interest Rate | Maturity Date |
|---|---|---|---|
| Term Loan | $1,808.5 million | 8.110% | March 11, 2028 |
| Senior Notes | $594.4 million | 4.250% | March 15, 2029 |
Stock-Based Compensation
For the three months ended September 30, 2024, Playtika's stock-based compensation costs included:
| Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Stock Options | $0.7 million | $1.0 million |
| Restricted Stock Units (RSUs) | $23.5 million | $27.1 million |
| Performance Stock Units (PSUs) | $0 million | $0.7 million |
| Total | $24.2 million | $28.8 million |
Impairment Charges
For the three months ended September 30, 2024, Playtika recorded an impairment charge of $29.3 million related to investments in unconsolidated affiliates. For the nine months ended September 30, 2024, the charge amounted to $36.3 million.
Foreign Currency and Interest Rate Risks
Playtika is exposed to foreign currency risks, particularly in currencies such as the Euro and Israeli Shekel. The company has hedged approximately $200.4 million of future salary expenses through foreign currency derivative contracts. Additionally, interest rate swap agreements are in place to manage exposure to variable interest rates.
How Playtika Holding Corp. (PLTK) Makes Money
Revenue Streams
Playtika primarily generates revenue from the sale of virtual items associated with its online games. The company distributes its games through various platforms, including mobile and web, such as Apple, Facebook, and Google, as well as its own direct-to-consumer platforms.
In the third quarter of 2024, Playtika reported total revenues of $620.8 million, a slight decrease from $630.1 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenues were $1.899 billion, down from $1.929 billion in 2023.
Revenue Breakdown by Geography
| Geographic Location | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| USA | $410.9 | $433.9 | $1,276.1 | $1,348.1 |
| EMEA | $121.4 | $107.0 | $358.8 | $314.1 |
| APAC | $45.2 | $45.1 | $131.9 | $136.0 |
| Other | $43.3 | $44.1 | $132.2 | $130.9 |
Revenue by Platform
| Platform Type | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Third-party platforms | $446.4 | $469.1 | $1,379.4 | $1,451.3 |
| Direct-to-consumer platforms | $174.4 | $161.0 | $519.6 | $477.8 |
Key Financial Metrics
For the three months ended September 30, 2024:
- Total cost and expenses: $523.3 million
- Operating income: $97.5 million
- Net income: $39.3 million
- Credit Adjusted EBITDA: $197.2 million
For the nine months ended September 30, 2024:
- Total cost and expenses: $1.5627 billion
- Operating income: $336.3 million
- Net income: $178.9 million
- Credit Adjusted EBITDA: $573.8 million
User Engagement Metrics
Playtika tracks several key user engagement metrics:
- Average Daily Active Users (DAUs): 7.6 million in Q3 2024, down from 8.4 million in Q3 2023.
- Average Daily Paying Users (DPUs): 301,000 in Q3 2024.
- Average Revenue Per Daily Active User (ARPDAU): $0.89 in Q3 2024, compared to $0.81 in Q3 2023.
- Average Monthly Active Users (MAUs): 26.4 million in Q3 2024, down from 28.4 million in Q3 2023.
- Average Daily Payer Conversion: 4.0% in Q3 2024, up from 3.6% in Q3 2023.
Operating Expenses
For the three months ended September 30, 2024, Playtika's operating expenses included:
| Expense Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Cost of Revenue | $168.1 | $173.9 |
| Research and Development | $99.2 | $102.2 |
| Sales and Marketing | $149.9 | $142.8 |
| General and Administrative | $76.8 | $79.6 |
| Impairment Charges | $29.3 | $41.6 |
Net Income
Net income for the three months ended September 30, 2024, was $39.3 million, translating to a net income margin of 6.3%. For the nine months ended September 30, 2024, net income totaled $178.9 million, with a net income margin of 9.4%.
Cash Flow and Liquidity
Playtika's net cash flows for the nine months ended September 30, 2024, were:
- Net cash provided by operating activities: $337.0 million
- Net cash used in investing activities: $125.5 million
- Net cash used in financing activities: $96.1 million
As of September 30, 2024, Playtika had cash and cash equivalents totaling $1.2017 billion and a borrowing capacity of $600 million under its Revolving Credit Facility.
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Resources:
- Playtika Holding Corp. (PLTK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Playtika Holding Corp. (PLTK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Playtika Holding Corp. (PLTK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.