Playtika Experiences Slight Decrease in Revenue but Acquires Governor of Poker Franchise
Playtika, a prominent gaming company, recently released their financial report which showed a 2% decrease in revenue, amounting to $642.8 million. Additionally, the company saw a 5.8% decrease in daily paying users, totaling 307,000. Despite their previous intentions to prioritize the growth of existing titles, Playtika also experienced minor decreases in revenue for games like Solitaire Grand Harvest and Slotomania.
However, Playtika has seen improvement since previous financial setbacks when their stock was upgraded by certain analysts. President and CFO Craig Abrahams commented that the company is well-positioned to pursue mergers and acquisitions, exemplified by their recent acquisition of the Governor of Poker franchise. This acquisition signifies a new source of revenue for Playtika and presents a lower risk compared to developing new games.
While some may question the wisdom of this acquisition strategy, considering Playtika’s recent acquisition of the Youda Games portfolio for $89.1 million, it is evident that the company is investing in growth. Despite potential concerns, Playtika’s strong financial position allows them to allocate resources towards expanding existing games rather than solely focusing on development.