Playtika Holding Corp. Q4 FY2024 earnings call

• 2024 achievements: Started capital allocation framework, initiated quarterly dividend, authorized buyback program, completed largest acquisition (SuperPlay) adding game franchises. • 2025 plans: Bring 3 new games to market in 12-18 months, including Claire's Chronicles and Disney's Solitaire (Q2 launch). • Portfolio management: Allocate resources based on game scale, leadership, and growth potential; invest in games with scale and growth, defend market share for scale-limited growth, and invest in high-growth potential low-scale games. • EBITDA metric change: Starting Q1 2025, credit-adjusted EBITDA will be adjusted EBITDA as retention plan concluded.

For the quarter, Bingo Blitz's revenue was $159.1 million, down 0.5% sequentially and up 5.8% year-over-year. Slotomania revenue was $118.4 million, down 7.9% sequentially and 13.5% year-over-year. Solitaire Grand Harves revenue was $72.5 million, down 8.1% sequentially and 4.3% year-over-year. Acquired titles: Animals & Coins had another record quarter with strong sequential growth; Governor of Poker 3 maintained robust momentum; SuperPlay contributed approximately $48 million in revenue for the quarter with adjusted EBITDA losses of minus $10 million.

• 2025 full year revenue expected $2.8 billion to $2.85 billion. • Adjusted EBITDA expected $715 million to $740 million. • Capital expenditures expected $95 million. • 2026 and beyond: In-play and SuperPlay studios expected to be positive EBITDA contributors. • M&A: Anticipate deploying $300 million to $450 million for bolt-on M&A over next three years.

• Slotomania faced game economy issues in Q4 negatively affecting performance. • Market competition in social casino genre could impact market share. • Integration of acquired studios may face challenges affecting performance.

Q: On organic growth trajectory for 2025, what's embedded from existing portfolio and recently acquired titles aside from new game launches?

A: From a cost perspective, development costs are baked in, but revenue contribution from new games is immaterial in 2025 guidance.

Q: View on non-gaming ads and in-app advertising monetization strategy?

A: Traditionally focused on in-app purchases, see in-app advertising as not a driver, and no comment on e-commerce trends.

Q: Key learnings on DTC strategy scaling in 2024 and transition in 2025?

A: On track with DTC revenue target, two games (June’s Journey and Solitaire) did well, DTC is growth agent for EBITDA.

Q: Trending in Slotomania in January and sustainability for Q1?

A: Made changes to game economy with near-term improvement, continuing to add new content, and investing in new slots title.