Playtika Returns to Profit as Marketing Spending Eases
Second-quarter revenue rose 5.0% from a year earlier to $731.1 million.
Playtika Holding (PLTK), the mobile-gaming company, returned to profit in the second quarter as lower marketing investment helped earnings recover from the prior period.
The results marked a shift from the first quarter, when front-loaded investment tied to SuperPlay contributed to a 37.8% sequential decline in adjusted EBITDA. SuperPlay became a positive adjusted-EBITDA contributor in the latest period.
Revenue fell 1.8% from the record $744.7 million reported in the first quarter, reversing the prior period’s 9.7% sequential increase. Net income reached $48.0 million, compared with a $57.5 million first-quarter loss and $33.2 million a year earlier. The first-quarter result included a noncash remeasurement tied to the SuperPlay earnout.
Adjusted EBITDA rebounded 64.6% sequentially to $206.1 million and rose 23.4% from a year earlier as marketing investment stepped down. The margin expanded to 28.2% from 24.0% a year ago, while remaining below the levels reported in the final two quarters of 2023.
Disney Solitaire remained the principal growth driver, with revenue rising 15.5% sequentially to $142.4 million after a 72.1% increase in the first quarter. Bingo Blitz declined for a third consecutive quarter, falling 5.6% to $145.1 million, while June’s Journey eased 1.7% to $74.7 million.
Direct-to-consumer revenue slipped 1.7% from the first-quarter record to $286.9 million, though year-over-year growth accelerated to 63.1%. The channel accounted for about 39% of total revenue, approaching Playtika’s 40% long-term target.
Playtika continues to expect 2024 revenue of $2.75 billion to $2.85 billion and adjusted EBITDA of $750 million to $790 million. Both ranges remain above its initial outlook, though the company now expects results near their lower ends because of cautious consumer spending and reduced second-half marketing.
First-half free cash flow fell to $15.0 million from $119.6 million a year earlier. Cash, cash equivalents and short-term investments declined to $438.5 million from $779.2 million at the end of March alongside a $350.0 million contingent-consideration payment.