Social gaming giant Playtika has raised its full-year revenue and earnings guidance after experiencing an increase in revenue during the first quarter of its 2021 financial year – the first reporting period since its initial public offering (IPO).
Revenue in the three months through to March 31 amounted to $638.9m, up 19.6% from $534.2m in the same period last year.
The majority of revenue in the quarter was generated via third-party platforms, with this accounting for $523.0m of the total, up 10.8% year-on-year. Revenue from internal proprietary platforms also increased 89.4% from $61.2m to $115.9m.
Playtika did not publish figures for specific products but did state revenue from its casual portfolio increased 30% year-on-year. Revenue from its Solitaire Grand Harvest product hiked 60%, Board Kings climbed 57% and Bingo Blitz revenue was up 40%
The US was the main source of income for Playtika in Q1, with revenue from the region rising 21.1% to $454.7m. Revenue in Europe, the Middle East and Africa (EMEA) was also up 13.6% to $91.7m, Asia-Pacific revenue climbed 20.5% to $49.9m and revenue across other areas increased 16.1% to $42.6m.
“We kicked off 2021 with a very robust first quarter,” Playtika chief executive Robert Antokoll said. “Our focus on data-driven game management, assisted by our impactful marketing campaigns, resulted in our impressive revenue growth.”
Costs and expenses for the quarter were up 20.0% at $508.6m, with Playtika spending more in all areas. Revenue costs were the main outgoing at $183.0m, while sales and marketing spend amounted to $140.1m, general and administrative costs $100.3m and research and development expenses $85.2m.
This left an operating profit of $130.3m, up 15.1% on last year, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was 38.6% higher at $258.0m.
After accounting for $75.7m in interest and other expenses, Playtika posted $54.6m in profit before tax, almost level with the $54.9m reported last year. Playtika paid $18.9m in income tax, resulting in $35.7m in profit after tax, only slightly down from $35.8m in Q1 of 2020.
However, when also including the negative effect of $9.9m in foreign currency translation and $100,000 change in fair value of derivatives, this left a comprehensive profit of $25.7m, down 23.3% year-on-year.
After analyzing the impact of its Q1 performance, Playtika increased its full-year guidance for certain figures. Revenue is now expected to reach $2.60bn, up from $2.44bn, while adjusted EBITDA is forecast to amount to $1.00bn, compared to the earlier $922.0m estimate.
“We are excited with our results and look forward to leveraging this success throughout the year,” Antokoll said.
Playtika president chief financial officer Craig Abrahams added: “Our business displayed excellent momentum in the first quarter, and we experienced strong performance across all parts of our company.
“We are pleased to be able to increase our financial outlook for the year, particularly of the target milestone of delivering $1.00bn in adjusted EBITDA for 2021.”
The results are the first to be published by Playtika since its IPO earlier this year. In January, Playtika confirmed its IPO would see 69,500,000 shares sold at a price of $27.00 per share.
This price was up from the estimated range of between $22.00 and $24.00 set out in its registration statement with the US Securities and Exchange Commission.