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Playtika Holding Corp. (PLTK)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 1.9% YoY and 4.8% QoQ to $650.3M while GAAP net income swung to a loss of $(16.7)M on higher operating costs and impairments; Credit Adjusted EBITDA declined 2.6% YoY to $183.9M, with margin compressing to 28.3% (31.8% in Q3) .
  • DTC revenue grew 8.0% YoY to $174.6M (flat QoQ), supported by record Bingo Blitz DTC performance and stronger payer conversion (4.2% vs. 3.5% LY) .
  • Mixed title performance: Bingo Blitz +5.8% YoY; Slotomania −13.5% YoY (game economy issues during Q4, addressed in January); Solitaire Grand Harvest −4.3% YoY .
  • 2025 outlook: revenue $2.80–$2.85B; Adjusted (Credit Adjusted) EBITDA $715–$740M; capex $95M; effective tax rate 35%, positioning 2025 as a “transitional” year as new titles scale and slots stabilize; dividend declared $0.10 payable April 4, 2025 .
  • Near-term narrative catalysts: Disney Solitaire global launch (Q2 2025), a new internally developed slots title, IGT content (e.g., Cleopatra II) to re-engage players, and SuperPlay integration (partial Q4 contribution ~$48M revenue) with expected EBITDA inflection in 2026 .

What Went Well and What Went Wrong

What Went Well

  • DTC momentum: DTC revenue +8.0% YoY to $174.6M; management reiterated DTC as a key EBITDA growth engine as more titles migrate to the platform .
  • Payer metrics strengthened: Average Daily Paying Users rose to 339K (+10.8% YoY; +12.6% QoQ) and payer conversion improved to 4.2% (from 3.5% LY) .
  • Bingo Blitz resilience and acquired-title strength: Bingo Blitz revenue $159.1M (−0.5% QoQ; +5.8% YoY), record DTC performance; Animals & Coins delivered a record quarter (best-ever Black Friday) and Governor of Poker III sustained momentum with DTC contributions .
    • Quote: “It was another record quarter for Bingo’s D2C business…we are pleased to see the underlying growth in…average daily paying users” .

What Went Wrong

  • Slotomania underperformance: revenue $118.4M (−7.9% QoQ; −13.5% YoY) due to game economy issues in Q4; fixes implemented in January and Cleopatra II launched to re-engage dormant players .
  • Margin compression and net loss: CA EBITDA margin fell to 28.3% (31.8% in Q3; 29.6% LY) and GAAP net income margin turned to −2.6%, driven by higher operating expenses (SuperPlay deal costs, media spend) and impairments .
  • Higher operating expense base: Sales and marketing +23.6% YoY, G&A +18.3% YoY (deal-related costs), and SuperPlay contributed −$10M adjusted EBITDA in a partial quarter—pressuring profitability into the 2025 “transitional” year .

Financial Results

Core P&L and Margins

MetricQ4 2023Q3 2024Q4 2024
Revenue ($M)$637.9 $620.8 $650.3
GAAP Diluted EPS ($)$0.10 $0.11 $(0.04)
Net Income Margin (%)5.8% 6.3% (2.6)%
Credit Adjusted EBITDA ($M)$188.9 $197.2 $183.9
Credit Adjusted EBITDA Margin (%)29.6% 31.8% 28.3%
DTC Revenue ($M)—$174.4 $174.6

Notes: CA EBITDA per company definition; DTC = Direct-to-Consumer .

Selected Title Revenue

TitleQ3 2024 ($M)Q4 2024 ($M)
Bingo Blitz$159.9 $159.1
Slotomania$128.7 $118.4
Solitaire Grand Harvest$79.0 $72.5

KPIs

KPIQ3 2024Q4 2024
Average DAUs (M)7.6 8.0
Average Daily Paying Users (K)301 339
Average Daily Payer Conversion (%)4.0% 4.2%
ARPDAU ($)$0.89 $0.89
Average MAUs (M)26.4 29.1

Balance Sheet and Cash Flow (FY)

  • Cash and cash equivalents: $565.8M (Dec 31, 2024) .
  • Free Cash Flow FY24: $396.8M (Operating cash flow $490.1M − capex components) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2024$2.505B–$2.520B (updated Nov 7, 2024) Actual $2.5493B Beat updated range
Credit Adjusted EBITDAFY2024$755M–$765M (updated Nov 7, 2024) Actual $757.7M In range
CapexFY2024$90M (updated Nov 7, 2024) Actual $93.3M (presentation) Slightly above
RevenueFY2025n/a$2.80B–$2.85B New
Adjusted (Credit) EBITDAFY2025n/a$715M–$740M New
CapexFY2025n/a$95M New
Effective Tax RateFY2025n/a35% New
DividendQ4 2024Prior quarterly $0.10 declared for Jan 3, 2025 pay date $0.10 declared; payable Apr 4, 2025 Maintained

Note: FY2024 “initial vs. updated guidance” and actuals summarized in the company’s Q4 deck .

Earnings Call Themes & Trends

TopicQ2 2024 (Q-2)Q3 2024 (Q-1)Q4 2024 (Current)Trend
DTC strategyEmphasis on DTC margin benefit; DTC +5.1% YoY; dividend initiated DTC +8.3% YoY; record in Bingo; targeting ~30% mix over time DTC +8.0% YoY; core EBITDA lever; more titles migrating Steadily expanding mix and impact
Slot portfolio stabilization—IGT Cleopatra II launch planned; product roadmap changes Game economy fixes in Jan; Cleopatra II reengaging players; new slots title in development Stabilization efforts underway
New game pipeline—Claire’s Chronicles noted as in development Disney Solitaire (global launch Q2 2025), Claire’s Chronicles, new slots game; costs embedded, immaterial 2025 revenue Pipeline broadened; 2026 EBITDA inflection targeted
SuperPlay (M&A)M&A focus, active pipeline Agreement to acquire; strategic fit Closed; Q4 partial contribution ~$48M revenue and −$10M EBITDA; 2026 profitability expected Integration and scaling
Capital allocationDividend and disciplined opex underscored Update post-close; FY24 guidance tweaked 3-year $300–$450M bolt-on M&A plan; ongoing dividends/buybacks Balanced returns + growth
Monetization mix—Remain IAP-focused; some titles with ads (e.g., Animals & Coins) No strategic shift to ads; remain IAP-first Consistent

Management Commentary

  • CEO: “We are thrilled with the progress…highlighted by our successful acquisition of SuperPlay…we are excited by our pipeline of new games and continued M&A opportunities” .
  • CFO: “We anticipate this year to be transitional as we invest in newly acquired studios in their early stages. We believe these investments will position us for renewed EBITDA growth starting in 2026 and beyond” .
  • CFO on Slots: “We are developing a new slots game to help regain market share…leveraging our know-how and 10+ years experience” .
  • CEO on DTC: “In our vision, DTC is one of the most growth engine for EBITDA…we grew 8% year-over-year” .

Q&A Highlights

  • 2025 guidance composition: New games (Disney Solitaire, Claire’s Chronicles, new slots) are immaterial to 2025 revenue guidance; development costs included; no additional M&A embedded .
  • Slotomania trajectory: Economy fixes implemented in January; Cleopatra II helped re-engage dormant players; a new slots title is in development to modernize experience .
  • DTC roadmap: Migration depends on game maturity/tech; intent is most titles on DTC within ~2 years .
  • Monetization mix: Strategy remains IAP-first; ads present in some games but not a primary growth lever .
  • Capital allocation: Expect $300–$450M of bolt-on M&A over 3 years; buybacks aimed at offsetting dilution; dividend maintained .

Estimates Context

  • We attempted to retrieve S&P Global (Capital IQ) consensus for Q4 2024 (Revenue, EPS, EBITDA) but it was unavailable due to a rate limit; as a result, we cannot present numerical comparisons vs. Street for this quarter (we will update upon access restoration) [GetEstimates error: Daily Request Limit Exceeded].
  • Implication: Absent consensus, we anchor the recap on company-reported results and call commentary. Future estimate revisions are likely around: (i) higher 2025 revenue from SuperPlay and Q2 Disney Solitaire launch timing, and (ii) lower 2025 EBITDA margin per “transitional year” framing, with an inflection in 2026 as studios turn EBITDA-positive .

Key Takeaways for Investors

  • Topline returned to modest growth with stronger payer conversion and DTC expansion, but profitability compressed due to SuperPlay costs, higher S&M, G&A deal costs, and impairments—consistent with a 2025 “investment year” setup .
  • Title dispersion persists: Bingo Blitz steady; Slotomania weak but early signs of stabilization with Cleopatra II and economy fixes; new slots title is an important 2025 catalyst .
  • 2025 guide implies revenue acceleration (to $2.80–$2.85B) with lower EBITDA ($715–$740M); Street models may need to reflect mix-shift and investment drag before a 2026 EBITDA upturn .
  • Watch execution on Disney Solitaire (Q2 launch), Claire’s Chronicles, and DTC migrations; these are central to the medium-term thesis and margin recapture via lower platform fees .
  • Capital returns are ongoing (dividend, buybacks), while M&A allocation ($300–$450M over 3 years) continues—bolstering pipeline but adding integration complexity and near-term EBITDA drag .
  • Risk factors include slots category headwinds, integration of SuperPlay, opex discipline during growth investments, and sensitivity to platform policies and global tax rate guidance (35%) .

Appendix: Additional Data and Disclosures

  • Dividend declaration: $0.10 per share, payable April 4, 2025 (record date March 21, 2025) .
  • SuperPlay acquisition completion and strategic rationale (Dice Dreams, Domino Dreams added) .
  • Non-GAAP definitions (Credit Adjusted EBITDA, Free Cash Flow) and reconciliations provided by the company .