Playtika’s Q2 2022 financial report shows major growth in casual games

The Israel-based company’s casual games portfolio grew by 10% year-on-year.
Playtika's logo on a dark background with a financial report image

Israel-based digital entertainment firm Playtika released its financial results for the three-month period ended June 30, 2022. The company’s casual games portfolio saw massive growth, but net income compared to the prior year’s period saw a significant decline.

Playtika ended up closing three studios and laying off nearly 250 employees back nearly two months ago, and Joffre Capital bought minority stakes in Playtika for $2.2 billion, paying $21 per share.

The company isn’t worried about the current situation, however, as they’ve seen decent progress in other divisions. Per the earnings report, Playtika’s average daily player conversion increased to 3.2%, and its casual games portfolio brought in 53.3% of that total revenue for this period. The gaming entity’s direct-to-consumer channel also grew by 14.2% year-over-year and now represents 23.3% of its total revenue.

The company’s report says the average DPU (daily paying users) also increased 35% year-over-year.

Playtika Q2 2022 financial highlights

The video game and entertainment company saw an increase in overall revenue in Q2 2022, but only slightly. Q2 revenue was recorded as $659.6 million, compared to $659.2 million during the same period last year.

Playtika’s net income during this three-month period is $36.4 million; the company saw $90 million back in Q2 2021.

The adjusted EBITDA (non-GAAP financial measure) was $238.9 million versus $264.4 million in the prior year.

Robert Antokol, Chief Executive Officer of Playtika said:

“We are proud of our performance in the second quarter in a challenging economic environment,” said Robert Antokol, Chief Executive Officer of Playtika. “We maintained growth in key strategic areas including our Casual game portfolio and Direct-To-Consumer platforms and demonstrated the resiliency of our business.

“Looking ahead to the second half, we are focused on the continued introduction of exciting new content for our existing portfolio of games and on our new game development initiatives as well.”

Playtika’s President and CFO Craig Abrahams also commented:

“We continued to optimize our business during the second quarter as we focus on execution. We took actions to improve our core operations and enhance product roadmaps while adapting to maintain margin and strong free cash flow generation.

We will continue to look for efficiency opportunities across our organization and capitalize on investments that position us for long-term sustainable growth.”

Playtika expects the revenue to be between $2.60 and 2.66 billion in 2022 and adjusted EBITDA to be between $900 and $940 million.

The company also announced that Jelly Button studio is working on a new “innovative hybrid game that combines the core merge game mechanic with casual build and battle elements” and two other titles are in soft-launch testing already.

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