Why Israeli Digital Entertainment Company Playtika's Shares Are Falling Today

Playtika Holding Corp. PLTK reported Q3 sales of $630.10 million, missing the street view of $638.18 million. Revenue decreased 2% sequentially and 2.7% year over year.

The company reported quarterly EPS of $0.10, missing the analyst consensus of $0.19.

Average daily paying users of 299K decreased 3.5% year over year, while the average payer conversion of 3.6% increased from 3.4% in the prior year period.

DTC platforms revenue of $161.0 million decreased 2.6% sequentially and increased 6.8% year over year.

Also Read: Game On In Israel! Playtika's Bold Move Seals $300M Deal To Takeover Mobile Gaming Firm Innplay Labs

Quarterly net income of $37.9 million decreased 49.9% sequentially and 44.4% year over year.

Playtika reported credit-adjusted EBITDA of $205.6 million, which decreased 4.4% sequentially and increased 1% year over year.

"Through resolute management we continue to generate robust free cash flow and deliver strong Credit Adj. EBITDA margins to invest in strategic, high-ROI activities like our two recent acquisitions of InnPlay Labs and Youda Games," said Craig Abrahams, President and Chief Financial Officer.

Outlook: Playtika expects FY23 revenue of $2.550 billion-$2.565 billion versus the Street view of $2.58 billion. In August, the company guided to be at the low end of the previously provided revenue range of $2.57 billion-$2.62 billion.

The company sees credit adj. EBITDA of $825 million-$832 million. In August, the company guided towards the higher end of the previously provided Credit Adj. EBITDA range of $805 million-$830 million.

Price Action: PLTK shares are trading lower by 6.56% to $8.12 on the last check Wednesday.