Playtika revenue up 6% after JustPlay.Lol acquisition

| By Marese O'Hagan
Social gaming business Playtika has reported revenue growth of 6% year-on-year to $676.9m (£550.9m/€643.8m) in the first quarter of 2022.

This was also a rise of 4.3% from the previous quarter, Q4 2021, when revenue was $649m.

Total expenses for the quarter came to $556.5m, a rise of 9.4%.

The largest expense was revenue costs, which came to $186.9m, a rise of 2.1%. Sales and marketing made up $179.7m of the total revenue, up by 28.2% from Q1 2021.

Research and development costs rose by 32.2% to $112.7m. Meanwhile, general and administrative costs fell by 23% $77.2m.

This left the total income from operations at $120.4m, down by 7.5% year-on-year.

Other expenses, which include interest expense, totaled at $27.5m. This was a significant fall of 63.6%.

After this, pre-tax income was $92.9m, an increase of 70.1%.

Following income tax provision of $9.7m, the net income for the quarter totaled at $83.2m, up by 133% yearly.

Adjusted earnings before interest, tax, depreciation and amortisation came to $220.5m, down by 14.5%

“We delivered strong revenue growth as a result of our continual efforts to improve and refine our monetisation program and increase retention of our players,” said Robert Antokol, chief executive officer of Playtika.

During the quarter, Playtika acquired JustPlay.Lol, creators of multiplayer game 1v1.LOL, at an undisclosed purchase price.

“We continue to lay the groundwork for future growth by making investments in the business to support new game development, recent acquisitions, offline marketing campaigns, and investments in our workforce,” said Craig Abrahams, president and chief financial officer at Playtika.

“These investments in marketing are weighted more heavily to the start of the year and will position the company well for sustainable growth.”

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