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Playtika Tops First-Quarter Revenue Estimates, Raises Annual Outlook as More Mobile Game Players Pay Up

05/11/2021 08:18

12:04 PM EDT, 05/11/2021 (MT Newswires) -- Playtika (PLTK) topped analysts' first-quarter revenue estimates Tuesday as more players of its mobile games sprung for paid add-ons amid the end of pandemic restrictions in the US, by far its larger market.

The Herzliya, Israel-based mobile games developer reported net income of $0.09 per share for the quarter ended March 31, matching the gain in the year-ago quarter as well as the average estimate of analysts polled by Capital IQ. Revenue rose 20% to $638.9 million, versus the average analyst estimate of $580.9 million.

"We kicked off 2021 with a very robust first quarter," said Chief Executive Robert Antokol. "Our Boost technology platform powers our best-in-class live operations, allowing Playtika to continually drive fresh content to our players. Our focus on data-driven game management, assisted by our impactful marketing campaigns, resulted in our impressive revenue growth."

The company raised its full-year 2021 financial forecast to $1 billion in adjusted earnings before interest, tax, depreciation and amortization on revenue of $2.6 billion, from prior guidance of $920 million in adjusted EBITDA on revenue of $2.44 billion. Analyst estimates for 2021 are for EBITDA of $908.1 million on revenue of $2.47 billion.

In the first quarter, Playtika reported adjusted EBITDA of $258 million, up from $186.1 million a year earlier. The measure also excludes stock-based compensation, long-term cash compensation, acquisition and related expenses and M&A-related retention payments, among other items.

Playtika, a 10-year-old company listed on the Nasdaq after an initial public offering in January, runs nine of the top 100 mobile games in the US, including its top hits Slotomania and Bingo Blitz. It uses what it calls its "player journey tool" to maximize revenue with "complex promotions tailored to our players' game behavior," Antoko said on a conference call, according to a Capital IQ transcript.

While the number of daily average users of the company's games declined to 10.4 million in the first quarter from 11.6 million a year earlier, the number of daily paid users rose to 296,000 from 272,000 a year earlier, and average revenue per daily average user rose to $0.68 from $0.50.

"As we're coming out of stay-at-home, we're continuing to see our mobile game users engaged and feel very excited by the KPIs that we're seeing, and we expect to continue to see that engagement throughout the year," said Chief Financial Officer Craig Abrahams on the conference call.

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