Playtika Q3 Revenue up 8.7% Yr/Yr, Beats Expectations

Reuters11-06

Overview

  • Playtika Q3 revenue slightly beats analyst expectations, growing 8.7% yr/yr

  • Record DTC revenue of $209.3 mln, up 20% yr/yr

  • Adjusted net income rises 16.3% yr/yr, reflecting strong operational leverage

Outlook

  • Playtika reaffirms full-year revenue guidance of $2.70 to $2.75 bln

  • Company maintains full-year adjusted EBITDA guidance between $715 and $740 mln

  • Playtika's strategy focuses on growing direct-to-consumer mix and enhancing cash generation

Result Drivers

  • DTC REVENUE GROWTH - Record DTC platforms revenue increased 19% sequentially and 20% yr/yr, driven by contributions from Bingo Blitz, June’s Journey, and Solitaire Grand Harvest

  • ACQUISITION STRATEGY - SuperPlay's strong performance validates Playtika's acquisition strategy, contributing to business model leverage

  • STRATEGIC RESOURCE REALLOCATION - Co's strategy to deepen player relationships and reallocate resources to high-return opportunities is strengthening its portfolio

Playtika shares jumped 7.2% in premarket trading.

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$674.60 mln

$669.60 mln (9 Analysts)

Q3 Net Income

$39.10 mln

Q3 Credit Adjusted EBITDA

$217.50 mln

Q3 Credit Adjusted EBITDA Margin

32.20%

Q3 Operating Income

$98.40 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy"

  • Wall Street's median 12-month price target for Playtika Holding Corp is $5.50, about 31.8% above its November 5 closing price of $3.75

  • The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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