In its Q4 23 earnings report, Playtika revealed a 7.6% year-over-year increase in direct-to-consumer revenue, reaching $161.6 million, which now constitutes 25% of the company’s overall revenue. Total revenue saw a modest 1.1% year-over-year growth to $638 million, with credit-adjusted EBITDA standing at $189 million, down 6.8% year-over-year.
The decision to suspend the sale or merger search was attributed to ongoing uncertainties in Israel and Ukraine, with 2024 designated as a year of reinvestment for the company.
According to Craig Abrahams, President and CFO of Playtika, the company sees itself well-positioned to lead consolidation in the mobile game industry, hence allocating $600 million to $1.2 billion for merger and acquisition activities over the next three years. Abrahams indicated that Playtika anticipates making one to two transactions annually, depending on market availability.
CEO and founder Robert Antokol provided insights into the company’s strategy, emphasizing a historical focus on merger and acquisition rather than new game development. Antokol stated that while Playtika may explore new game ventures, merger and acquisition remains the primary focus.
Moreover, Playtika intends to ramp up performance marketing expenditure for its existing titles in the coming year, signaling a commitment to enhancing the performance of established games in its portfolio.
The strategic shift by Playtika underscores its confidence in driving growth through targeted merger and acquisition initiatives as the company navigates market uncertainties and solidifies its position in the mobile game industry.
