Playtika Holding (PLTK) 11 May 212021 Q1 Earnings call transcript

Good day! And thank you for standing by. Welcome to the Playtika's First Quarter 2021 Earnings Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]. today’s being that advised be conference recorded. is Please Instructions]. [Operator hand over Vice to I Investor would speaker conference to like Niederman, now your the today, Relations. President, David Please go ahead.

the for everyone, Holding Playtika us thank to XXXX you Welcome today call and Corp. for first for quarter earnings joining

and the control. and to you are and Vice not apply undertake These Rapps, like me future, Officer. guarantee call. you Playtika; as Corporate Co-Founder no are operating Development; obligation of and performance today, of Vanke, discussion uncertainties, forward-looking Robert President after and and These Chief may I'd as Eric update views which of on rely statements future future anticipated We not not statements risks representing rather Joining the Abrahams, some Financial Playtika's beyond this are forward-looking Officer; our comments Antokol, performance. in these that today's including CEO of Troy revenue Accounting statements company's statements Craig limited our are remind President them call on today a and but Chief contain should the to to other of to subject but future.

our the the of and a complete the Robert. more now For discussion call SEC. I turn uncertainties, filings please will risks that, see with With over to

today. an excellent had joining first We David, you, us you thank Thank everyone and quarter.

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approximately million announced, million GAAP our net to of to we outstanding $XX.X expense capital and in transactions us on in our debt our year. we late interest last early $XX.X million March. debt QX refinanced income In March, enhanced basis. structure versus previously cash next These over rate reported agreements XX% income annualized savings allowed our expense secure the of five net fix of an and $XX interest years over on further in swap through interest As

XXXX. First QX, quarter increase adjusted EBITDA was XX.X% strong at over million, representing $XXX a

performance adjusted expansion were Our same the XX.X%, to EBITDA QX driven was proprietary in strong our compares revenue in platforms. margin increase of XX.X% which also This continued margins last the the year. year-over-year and by period

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[Operator you. Thank Instructions].

with Morgan Our from Nowak Brian first question comes Stanley.

Your line is open.

to Thanks ahead Brian. start, the excess came question. know is how you full This guidance XQ raised much guess Matt guys! for of year you line of Hi consensus. for I just for the taking well in top on in

that growing the have gives back continue that What hit kind to harder hold keep the comps? of momentum the the you sort through you you'll of and obviously year. going know conversion of users, guys those you onto the So even able to we half be driving Thanks. speaks rest as to been confidence

the for question. you thank Hey,

the we we and So looking dramatically XXX we really this top year them we none – games, have games, about yes, are so are guidelines down see growing like roadmap, the grossing see and the XX how confidence roadmap and said. in so the when we U.S. the started we of we are

me XX in the for For Playtika, quarter important most the when years, look first quarter. you is the always last

We’re total raised is of we a the exactly numbers, strong why this the have and we strong, I’m confidence starting about we’re year rest guidelines. if if getting our so feeling really roadmap,

Thank you. Okay.

Thank you.

Stephen from with Suisse. comes question next Our Credit Ju

open. is line Your

Okay, thank you.

as the guys have users. paying or pipeline. not about corner, is you continue the spike your as like that we thinking that release about year number or plans last eight the updates games coming year these monthly physical active potential off part soft in dates? collection, near-term brewing your to Any looks be that about it guidance? have to you assume talking daily turned may your the of And secondarily, well user have as decline Should are So launches

guidance from in growth the speak does ongoing parameters Thanks. So sequential here.

Sure.

So, hey good to from hear you. Stephen,

of any it So in M&A. that game new our the launches include doesn't any our business is potential guidance, include terms doesn't organic plan, year, it for

know So think guided as launch. part about we’ll roadshow you game a you new that we with of in XXXX games, one have global as the

you ’XX. in know anything guidance doesn't suggest So the

the on feel and to our about we KPIs, excited terms mobile engagement. expect game DPUs, throughout saw you're users execute the and some that KPIs stay-at-home, In that coming sequential we were engaged as to see guys to map. out of the we're right. year to And seeing as engagement continue in our great we're and road continuing very the growth We continue see

thank you. Okay,

Thank you.

from comes question Colin next with Our Baird. Sebastian

line Your is open.

again. and good morning afternoon. Nice everyone. Good once quarter Thanks Great!

maybe off, follow-up from to Steven. second to First question the just

just game engagement impact with the growth. the Just campaign, and performed in how if side secondly, on an on in helping you're casino end drive press then to impactful specifically, release maybe curious social of QX any usage Slotomania you or about talked seeing the And or lockdowns. the marketing

from If as apple's enforcement. platforms, seeing you. initiatives app it other impact any privacy broadly to on about relates could UA downloads talk or if those you're Thank you and more from and retargeting Facebook

Hey, thank for you the question.

ask just XX X%. So game years about Slotomania. regarding and Slotomania everybody strong includes Its old It’s quarter quarter. a us we this very have

running that’s game it’s XX than lot a So a years. more for

strong roadmap first before my a have question. said as in We I today,

a feature Slotomania especially to the Slotomania, group's strong We the more others really really We have new roadmap a against about new Slotomania it. platform, and and so feature. we’re for add a confident feel getting

don’t in few see UA, We're any returns same. with the that Everything the can good weeks, or till that see the don't business the few well and very looks anything very doing we Regarding now anything last changes really changes. we months. impact

Alright, thanks Robert.

Thank you.

from comes question Stifel. next Drew Our with Crum

Your line is open.

Hi! for is This on David Drew.

this level drove What strong in guys and XQ quarter. first gross for sustainable? You the had the really margins is improvement

thanks Sure, the for question.

XX% So proprietary our XX-Q revenue of as in our terms from was is up had gross terms of gross filed, some platforms improvements our that margin up that just of CNR in XX.X%. we from revenues, percentage of

the and is so So intend of of what margin revenues from I in we see those continue. year, that percentage gross the as improvements well, think with throughout that sort you'll I to go see we think to do platforms expect we as similar

end. I our quarter, for to we blend margins. margin and we guidance, adjusted think year the margins guided XX.X% throughout XX% you'll prior XX.X% had on by from while overall costs up EBITDA see some increased EBITDA I think so expect we the in guidance get and That's a an margin, of in perspective our to over year XX.X%

you. Thank

Creutz comes Our Doug from next with Cowen. question

Your open. line is

of kind across CPIs up or you pretty terms very stable. was what Hey, you. remained Thank if seems acquisition thank they costs? going of the just you. industry. trends It advertising I’m in digital wondering customer saw If were QX that strong

overall costs that consistent. didn't so in was for see out us, We perspective. think stood Yes, terms noting; of marketing nothing in everything trends I worth pretty any

you. thank Okay,

Thank you.

next of from MKM question Our Eric comes Handler Partners.

open. is line Your

– question. days? for what’s on seeing thinking you're give and going thank How if how I now right in of thoughts, lot activity is and you the M&A morning you’d the what wondering you – these just a know you Good there are about things some was landscape.

as fixed and $XXX about sit our balance over No, in balance us. undrawn we sheet. the to sheet the $X.X billion really M&A. we in support now Sure. the about good We quarter. about a have opportunities we’re feel well We excited revolver our Obviously and That of liquidity of front includes M&A today. pipeline where $X billion million

report know encouraged in and update So there's and activity we'll very pipeline. to when to think I a you good of on. is feel something the there update But today, there's nothing the but we on feel lot we about market specifically

you. Thank

you. Thank

of Bazinet Our comes question from final Jason Citi.

Your line is open.

just Good on going sort implications business? that perspective be did your did if know driving any that call of I’ll the that or was I to in into broader you you platform or and itself, there networks morning. out what share think the some if – on your the – is could of out that shifts some just the you are ran moving them meaning of wondering on landscape, traditional and you I companies gaming remediation wonder, app attribution what are know business for do Thanks. seem

Sure. Thanks Eric.

they speak entering won't space. we be So may to competitors’ strategies and why the game

great executing our know last business our You strategy. really feel about good on know a it next for the keep XX been and we model the we'll and for executing We on plans you years years. have we've XX

Just IP and harder actual qualitatively, guys do business. are feel ahead games, that's you sort the the of like the of like own in you you the part

we’ve this road talked think the You know I about show. in

We have structural advantages. some

distinct advantage don't own know a have we in We electoral Israel. our property. own You

workforce We Europe. have a Eastern throughout great strong R&D

pollinate next boost from nine the to one leading Playtika our in and leverage top cross franchise title the to learnings have able XXX We platform.

our have and in portfolio I a boost and the investments So us marketplace. the fact such an we technology advantage well-diversified and definitely gives think that

Thank you.

I’d you. over the Antokol now like Thank call turn to for remarks. closing to back Robert

can year, our last so really and competitor about much XX%. shows about year-after-year To in Playtika only this XX organic how did you this guidance, quarter, map, like very I a dramatically we the about call. I'm excited how summarize thank everything, of everyone about grow strong the – the So, It as road for years. is about the growth

guys. for next call. so and joining you you us see the much in again you, Thank thank So,

call. today's Thank concludes for conference you participating. This

may now disconnect. You