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Playtika latest results show decreases in revenue & paying users

Playtika's latest financial report indicates a slight decline in revenue, while highlighting the acquisition of the Governor of Poker franchise as a significant move.

The financial report showcases a 2% decrease in revenue, totaling $642.8 million, and a 5.8% decline in daily paying users, reaching 307,000. Playtika also experienced minor revenue drops in several of its titles, such as Solitaire Grand Harvest and Slotomania. This is notable given their previous intention to prioritize the growth of their existing games rather than focusing on new developments.

The company has managed to recover to some extent from earlier financial challenges when analysts upgraded its stock rating from "underperform" to "neutral."

President and Chief Financial Officer Craig Abrahams remarked that Playtika was quick to adapt to the evolving mobile gaming landscape, positioning itself well to pursue mergers and acquisitions (M&A) deals, including the acquisition of the Governor of Poker franchise. This move contributes new revenue and carries a lower risk compared to investing in entirely new developments. The acquisition strategy aligns with Playtika's efforts to expand existing games, even if it involves allocating cash towards acquisitions in the short term rather than investing in long-term development.

Nonetheless, some might question the wisdom of this acquisition-heavy strategy. Just recently, Playtika acquired the Youda Games portfolio from Azerion for $89.1 million. While Playtika is not in dire financial straits, there may be concerns about the sustainability of continuously driving growth through acquisitions.

Source: Iwan Morris, Staff Writer at PocketGamer

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