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Playtika generated $630.1 million in the third quarter of 2023

The company saw declines in the latest in a series of weak financial quarters
Playtika generated $630.1 million in the third quarter of 2023
  • The company saw declines in several key metrics including net income and Direct to Consumer Platforms
  • But remains optimistic regarding its future despite the declines

Playtika generated $630.1 million in the third quarter of 2023, according to its latest quarterly report.

Despite this massive number, it does represent a 2% decrease from Q2, and a 2.7% decrease from $647.8 million in the same period in 2022.

Playtika saw similar results in other key metrics. Net income decreased 49.9% quarter-on-quarter and 44.4% from $68.2 million the same period in Q3 2022, standing at $37.9 million. Revenue from the company’s Direct to Consumer (DTC) platforms stood at $161 million, representing a 2.6% quarter-on-quarter decrease and a 6.8% year-on-year increase.

Taken together, these figures suggest a gradual decline in the company’s financial performance over the last year. However, the company remains confident in its future performance.

“Our commitment to operational stability and delivering exceptional immersive gaming experiences remains unwavering amid the backdrop of conflict,” said CEO Robert Antokol. “It is in the very DNA and culture of Playtika to persevere, adapt and thrive. Our team in Israel and around the globe is dedicated to upholding our mission, serving our players and delivering value to our investors, even in the face of adversity.”

“Through resolute management we continue to generate robust free cash flow and deliver strong Credit Adj. EBITDA margins to invest in strategic, high-ROI activities like our two recent acquisitions of InnPlay Labs and Youda Games,” said Craig Abrahams, President and Chief Financial Officer. “We will continue to focus on leveraging our proprietary technology and live operations to optimize games and enhance the player experience.”

Declines for Playtika

This somewhat negative quarterly report is just the latest for Playtika, which has had a turbulent year. December 2022 saw the company lay off over 600 members of staff, the company’s high profile bid to acquire Finnish gaming giant Rovio fell through in early 2023, and there were even mumblings that the company could be the target of a buyout. However, the company has rebounded, with investor confidence increasing despite a series of weak financials.

Outside of financial performance, Playtika saw declines in several other key metrics. Daily active users (DAU) fell 6.6% year-on year, from an average of nine million in Q3 2022 to 8.4 million in Q3 2023. Average daily paying users (DPU) also fell 3.5% from 310,000 to 299,000, while average monthly active users (MAU) fell from 30.2 million to 28.4 million.

In terms of genres, the company reported a 2.1% quarter-on-quarter decrease in casual games revenue, while remaining on-par with the same period last year. Social casino revenue fell 1.7% from Q2, and 6.6% from Q3 2022.

However, the company did report success elsewhere. Despite the fall in average DPU, the company saw a slight increase in player to payer conversion, standing at 3.6% in Q3 compared to 3.4% in the same period of 2022. Average revenue per daily average user also increased slightly, from $0.78 to $0.81.

Additionally, Playtika has completed a number of key acquisitions in the past quarter, namely InnPlay Labs and Youda Games, which could bolster the company’s financial performance in the future.

We listed Playtika as one of the top 50 mobile game makers of 2023.