Playtika plans to invest $450 million in mergers and acquisitions, and continues to launch new games
Playtika, the Israeli gaming powerhouse, recently announced plans to allocate up to $450 million towards mergers and acquisitions in the next three years. Additionally, the company is set to launch three new games within the next 18 months, including Wooga’s Claire’s Chronicles, SuperPlay’s Disney Solitaire, and a new slots game.
In the past, Playtika refrained from introducing new games until market conditions improved. Instead, the company opted to focus on acquiring high-potential titles that were already gaining momentum. For instance, in September 2023, Playtika acquired InnPlay Labs, the developer behind Animals and Coins, for an initial $80 million, with a potential increase to $300 million. Subsequently, in September 2024, Playtika purchased SuperPlay, the maker of Dice Dreams and Domino Dreams, for an initial $700 million, with a possibility of up to $1.25 billion.
During the fourth quarter, standout performers included Animals and Coins and Governor of Poker, while SuperPlay’s titles, Domino Dreams, and Dice Dreams, contributed $48 million in revenue. Playtika’s CEO, Robert Antokol, expressed optimism regarding King’s Candy Crush Solitaire, stating that its launch presented a growth opportunity for the solitaire game market.
Q4 financial results showed a revenue increase of 1.9%, totaling $650.3 million. Direct-to-Consumer (DTC) revenue also experienced growth, rising by 8%. However, Playtika reported a net loss of $16.7 million, marking a decrease in net income of 144.8%. Credit Adjusted EBITDA stood at $183.9 million, down by 2.6%, with cash and cash equivalents totaling $565.8 million as of December 31, 2024.
Among other Q4 highlights were increases in the number of average daily paying users, casual games revenue, and revenue from Bingo Blitz. Nevertheless, there was a decline in Social casino games revenue and revenue from Slotomania and Solitaire Grand Harvest.
For the full year of 2024, Playtika reported a revenue decrease to $2.5 billion from the previous year. However, DTC revenue saw an increase to $694.2 million. Net income declined to $162.2 million, while Credit Adjusted EBITDA fell to $757.7 million. Free cash flow also decreased to $396.8 million during the same period.
Looking forward to the fiscal year 2025, Playtika anticipates revenue in the range of $2.8-2.85 billion and an expected Credit Adjusted EBITDA between $715-740 million. The company also foresees capital expenditures of $95 million. CEO Robert Antokol expressed satisfaction with the company’s progress in executing their growth strategy and emphasized excitement about the pipeline of new games and potential M&A opportunities. Antokol believes that these endeavors will lead to consistent revenue growth and generate value for shareholders.