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Playtika SEC statement reveals revenue of $1.80bn in first nine months of 2020


Playtika’s registration statement, filed with the US Securities and Exchange Commission (SEC) ahead of a planned initial public offering, reveals the business generated revenue of $1.80bn in the nine months to 30 September, 2020. 

The social gaming giant first announced plans for an IPO in October, but the SEC registration statement, which must be reviewed and approved before the offering can take place, was not made public until late December. 

There remains little clarity as to how many shares are to be sold and the price range of the offering, both of which are yet to be determined. However, it did note that following the offering its parent company Giant Investments, led the consortium that acquired the business from Caesars Entertainment in a $4.4bn deal in 2016, would retain majority control of the business. 

The registration statement also revealed that for the nine months to 30 September, revenue grew 28.5% year-on-year to $1.80bn, with adjusted earnings before interest, tax, depreciation and amortisation growing 41.2% to $665.8m.

Of its revenue for the period, it noted, 57.4% was generated from casino-themed titles, with a further 42.6% coming from casual games. 

Daily paying user numbers grew to an average of 290,000 for the period, with average revenue per daily active user growing from $0.51 to $0.57. 

However, a 56.0% rise in expenses to $1.55bn hit the business’ bottom line, reducing operating profit by 39.4% to $244.9m. Interest payments rose from $20.6m to $149.1m for the period – with the company’s long-term debt standing at $2.32bn – resulting in pre-tax profit declining to $95.8m. 

After income taxes, Playtika’s net profit for the nine month period came to $16.1m, down from $258.9m in the first nine months of 2019. 

Looking ahead, the business’ founder and chief executive Robert Antokol said the business would look to continue efforts to diversify into casual games, both by developing its existing portfolio, supported by further M&A.

“We believe we have a significant opportunity to create value and drive growth by continuing our successful track record of acquiring and enhancing these types of assets,” he said. 

However, Antokol continued, Playtika’s core skills lay in marketing, monetisation and technology, which provided it with an opportunity “to do something bigger”. 

“We may look to leverage our skills and technology platform to expand beyond games and into other mobile apps, digital entertainment and consumer internet businesses,” he said. 

“As we have over the last decade, we aim to continue driving our company to new heights by providing quality entertainment and leveraging our skill-set across monetization, marketing, M&A, and technology,” he added.

“I am more excited than I have ever been about our future potential, and we are excited for you to be a part of it.”