Playtika Holding Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, Playtika generated revenues of $620.8 million, a decrease from $630.1 million in the same period of 2023. Similarly, for the nine months ended September 30, 2024, revenues totaled $1,899.0 million, down from $1,929.1 million year-over-year. The decline in revenue was attributed to a decrease in revenues from third-party platforms, which fell to $446.4 million from $469.1 million, although direct-to-consumer platform revenues increased to $174.4 million from $161.0 million.

Despite the revenue decline, Playtika's income from operations for the third quarter improved to $97.5 million, up from $90.0 million in 2023. However, for the nine-month period, income from operations decreased to $336.3 million from $381.6 million. Net income for the third quarter rose to $39.3 million, compared to $37.9 million in the prior year, while net income for the nine months decreased to $178.9 million from $197.7 million.

The company reported total costs and expenses of $523.3 million for the third quarter, down from $540.1 million in 2023, and $1,562.7 million for the nine months, slightly up from $1,547.5 million. Notably, sales and marketing expenses increased significantly, reflecting higher media spending due to acquisitions. General and administrative expenses decreased, largely due to a $16.2 million adjustment related to the fair value of contingent consideration from the InnPlay acquisition.

Playtika's cash and cash equivalents as of September 30, 2024, stood at $1,145.9 million, an increase from $1,029.7 million at the end of 2023. The company also reported a reduction in total liabilities to $3,287.1 million from $3,396.5 million, and a decrease in total stockholders' deficit to $(98.0) million from $(221.5) million.

Strategically, Playtika announced the acquisition of SuperPlay Ltd. for $700.0 million, with potential earnout payments based on future performance. Additionally, the company amended its agreement for the acquisition of G.S InnPlay Labs Ltd., reducing the maximum earnout consideration.

Overall, while Playtika faced revenue challenges, it demonstrated operational improvements and strategic growth through acquisitions, alongside a strengthened balance sheet.