Summary Operating Results of Playtika Holding Corp.

		Three months ended September 30,								Nine months ended September 30,
(in millions, except percentages, Average DPUs, and ARPDAU)			2024				2023				2024				2023
Revenues		$	620.8			$	630.1			$	1,899.0			$	1,929.1
Total cost and expenses		$	523.3			$	540.1			$	1,562.7			$	1,547.5
Operating income		$	97.5			$	90.0			$	336.3			$	381.6
Net income		$	39.3			$	37.9			$	178.9			$	197.7
Credit Adjusted EBITDA		$	197.2			$	205.6			$	573.8			$	643.3
Net income margin			6.3	%			6.0	%			9.4	%			10.2	%
Credit Adjusted EBITDA margin			31.8	%			32.6	%			30.2	%			33.3	%
Non-financial performance metrics
Average DAUs			7.6				8.4				8.1				8.7
Average DPUs (in thousands)			301				299				303				311
Average Daily Payer Conversion			4.0	%			3.6	%			3.7	%			3.6	%
ARPDAU		$	0.89			$	0.81			$	0.85			$	0.81
Average MAUs			26.4				28.4				29.0				29.0

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 offices worldwide.

Forward Looking Information

This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Section 21E of the Exchange Act. All statements other than statements of historical facts contained in this press release, including statements regarding our business strategy, plans and our objectives for future operations, are forward-looking statements. Further, statements that include words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “future,” “intend,” “intent,” “may,” “might,” “potential,” “present,” “preserve,” “project,” “pursue,” “should,” “will,” or “would,” or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements.

We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves significant risks, uncertainties and assumptions, including, but not limited to, the risks and uncertainties discussed in our filings with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment and industry. As a result, it is not possible for our management to assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated, predicted or implied in the 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:

• actions of our majority shareholder or other third parties that influence us;

• 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 or in the SuperPlay portfolio, is highly dependent on how we manage the game revenues and pricing models;

• our inability to obtain necessary governmental or other approvals in a timely fashion or at all or our inability to otherwise complete this acquisition and integrate the SuperPlay portfolio into our operations successfully or realize the anticipated benefits of the acquisition;

• our inability to refinance our revolving credit facility which is set to expire in March 2026 or otherwise obtain additional financing, in each case, on favorable terms or at all;

• the ability of the SuperPlay portfolio to compete in a highly competitive industry with low barriers to entry;

• our ability to retain existing players, attract new players and increase the monetization of our player base;

• we have significant indebtedness and are subject to the obligations and restrictive covenants under our debt instruments;

• the impact of the COVID-19 pandemic or other health epidemics on our business and the economy as a whole;

• our controlled company status;

• legal or regulatory restrictions or proceedings could adversely impact our business, including the SuperPlay portfolio, and limit the growth of our operations;

• risks related to our international operations and ownership, including our significant operations in Israel and Ukraine and the fact that our controlling stockholder is a Chinese-owned company;

• geopolitical events such as the Wars in Israel and Ukraine;

• our reliance on key personnel, including our ability to retain the key personnel of SuperPlay;

• market conditions or other factors affecting the payment of dividends, including the decision whether or not to pay a dividend;

• uncertainties regarding the amount and timing of repurchases under our stock repurchase program;

• 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.

PLAYTIKA HOLDING CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except for per share data)
(Unaudited)
		Three months ended September 30,								Nine months ended September 30,
			2024				2023				2024				2023
Revenues		$	620.8			$	630.1			$	1,899.0			$	1,929.1
Costs and expenses
Cost of revenue			168.1				173.9				513.3				537.9
Research and development			99.2				102.2				306.7				304.9
Sales and marketing			149.9				142.8				509.7				427.7
General and administrative			76.8				79.6				196.7				225.7
Impairment charges			29.3				41.6				36.3				51.3
Total costs and expenses			523.3				540.1				1,562.7				1,547.5
Income from operations			97.5				90.0				336.3				381.6
Interest and other, net			33.8				25.2				77.4				76.9
Income before income taxes			63.7				64.8				258.9				304.7
Provision for income taxes			24.4				26.9				80.0				107.0
Net income			39.3				37.9				178.9				197.7
Other comprehensive income (loss)
Foreign currency translation			7.4				(4.1	)			1.9				(1.2	)
Change in fair value of derivatives			(17.9	)			1.1				(15.5	)			8.1
Total other comprehensive income (loss)			(10.5	)			(3.0	)			(13.6	)			6.9
Comprehensive income		$	28.8			$	34.9			$	165.3			$	204.6
Net income per share attributable to common stockholders, basic		$	0.11			$	0.10			$	0.48			$	0.54
Net income per share attributable to common stockholders, diluted		$	0.11			$	0.10			$	0.48			$	0.54
Weighted-average shares used in computing net income per share attributable to common stockholders, basic			372.2				366.7				371.4				365.8
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted			372.5				367.6				371.7				366.3

 

 

Non-GAAP Financial Measures

Credit 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 Credit Adjusted EBITDA to net income, the closest GAAP financial measure. Our Credit Agreement defines Adjusted EBITDA (which we call “Credit Adjusted EBITDA”) as net income before (i) interest expense, (ii) interest income, (iii) provision for income taxes, (iv) depreciation and amortization expense, (v) impairment charges, (vi) stock-based compensation, (vii) contingent consideration, (viii) acquisition and related expenses, and (ix) certain other items. We calculate Credit Adjusted EBITDA Margin as Credit Adjusted EBITDA divided by revenues.

Credit Adjusted EBITDA and Credit 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 Credit Adjusted EBITDA and Credit 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 CREDIT ADJUSTED EBITDA
(In millions)
		Three months ended September 30,								Nine months ended September 30,
			2024				2023				2024				2023
Net income		$	39.3			$	37.9			$	178.9			$	197.7
Provision for income taxes			24.4				26.9				80.0				107.0
Interest expense and other, net			33.8				25.2				77.4				76.9
Depreciation and amortization			39.2				38.4				117.1				116.0
EBITDA			136.7				128.4				453.4				497.6
Stock-based compensation(1)			23.6				28.0				70.2				82.5
Impairment charge			29.3				41.6				36.3				51.3
Changes in estimated value of contingent consideration			(2.4	)			—				(15.8	)			—
Acquisition and related expenses(2)			7.0				5.6				9.7				8.7
Other items(3)			3.0				2.0				20.0				3.2
Credit Adjusted EBITDA		$	197.2			$	205.6			$	573.8			$	643.3
Net income margin			6.3	%			6.0	%			9.4	%			10.2	%
Credit Adjusted EBITDA margin			31.8	%			32.6	%			30.2	%			33.3	%
_________
(1) Reflects, for all periods, stock-based compensation expense related to the issuance of equity awards to our employees.
(2) Includes costs incurred to evaluate and pursue acquisition activities as well as costs incurred by the Company in connection with the evaluation of strategic alternatives.
(3) The amounts for the three and nine months ended September 30, 2024 consists primarily of $2.0 million and $16.7 million, respectively, incurred by the Company for severance. The amount for the nine months ended September 30, 2024 also includes $6.2 million incurred by the Company related to restructuring activities. The amounts for the three and nine months ended September 30, 2023 consists primarily of $0.8 million and $1.5 million, respectively, incurred by the Company for severance and, for the three and nine months ended September 30, 2023, $1.0 million for tax assessment paid under protest.

 

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