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Playtika withdraws from sale discussions as it issues share dividends and commits

Playtika has unveiled its Q4 2023 financial results, showcasing increased revenue totaling $637.9 million, representing a sequential uptick of 1.2% and a year-over-year growth of 1.1%. Revenue from Direct-to-Consumer (DTC) platforms reached $161.6 million, reflecting a 0.4% increase and a significant year-over-year growth of 7.6%.

In conjunction with the financial report, the company has announced a pause in its "strategic alternatives process," effectively removing itself from consideration for potential buyers. Citing ongoing uncertainty in Israel and Ukraine, Playtika's Board of Directors attributed the decision to global unrest, previously redirecting focus from new title development to enhancing existing games.

CEO Robert Antokol emphasized the company's transition towards reinvestment, highlighting a strategic shift towards pursuing mergers and acquisitions (M&A) opportunities. Meanwhile, President and CFO Craig Abrahams detailed Playtika's new capital allocation framework, which includes initiating quarterly dividends and earmarking $600 million to $1.2 billion for M&A over the next three years.

As part of its dividend initiative, Playtika announced a cash dividend of $0.10 per share of outstanding common stock, payable on April 5, 2024, to stockholders of record as of March 22, 2024. Additionally, the company aims to explore alternative avenues to enhance shareholder returns, potentially including a share repurchase program in the future.

Despite recent layoffs totaling approximately 900 employees, Playtika remains committed to its expansion strategy, buoyed by previous acquisitions such as Wooga Games, Supertreat, Seriously, Reworks, and Youda Games. Abrahams remains optimistic about the company's future, asserting that Playtika is well-positioned to lead consolidation in the mobile gaming industry.

In terms of financial performance, net income saw a decline to $37.3 million, reflecting a year-over-year decrease of 57.4%, while Credit Adjusted EBITDA decreased to $188.9 million, down 6.8% year-over-year. As of December 31, 2023, cash and cash equivalents stood at $1,029.7 million.

For FY2023, Playtika reported revenue of $2,567.0 million, with DTC platform revenue totaling $639.4 million. Net income amounted to $235.0 million, and Credit Adjusted EBITDA reached $832.2 million, with Free Cash Flow totaling $436.4 million.

Looking ahead, Playtika anticipates FY2024 revenue to range between $2.520 and $2.620 billion, with Credit Adjusted EBITDA estimated between $730 and $770 million. Capital expenditures are projected to be between $110 and $115 million, including $17 million in accrued capital expenditures from Q4 FY2023 disbursed in FY2024.

Source: adapted from an article by Isa Muhammad, Staff Writer for

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