Playtika 3Q20 earnings skyrocket ahead of IPO, helped by stay-at-home guidelines

Playtika booked a 26% year-over-year increase in revenue for 3Q20, while adjusted EBITDA rose nearly 54% in the quarter, according to two sources familiar with the situation.

The Israeli mobile gaming company last week reported USD 613m of revenue for the quarter, the sources said. The company benefited from stay-at-home orders and lower expenses, one of the sources added.

In tandem, adjusted EBITDA climbed to USD 238m for 3Q20 from USD 155m in 3Q19, the sources said.

As of 30 September, liquidity totaled USD 728m through USD 378m of cash and an undrawn USD 350m revolver. The company is 2.87x levered, based on USD 815m of LTM adjusted EBITDA and USD 2.342bn of total debt.

Playtika filed a confidential S-1 last month for an upcoming IPO. The company has hired Morgan Stanley and other investment banks to underwrite the IPO, according to a Reuters report in June. The company could reach a valuation of about USD 10bn, the report said.

The company is currently owned by a consortium of investors called Alpha Frontier, led by Chinese conglomerate Giant Network Group. In 2016, Alpha Frontier acquired Playtika from Caesars Interactive for USD 4.4bn.

Giant has tried to acquire full ownership of the company from the other consortium members multiple times and failed, sometimes sparking regulatory scrutiny from China. It abandoned its most recent attempt in November, saying the company would be pursuing an IPO abroad.

Giant’s latest attempted buyout valued the company at USD 5.8bn-USD 6bn, according to media reports.

Playtika’s USD 2.5bn Libor+ 600bps TLB due 2024 is quoted in the 100.4/100.838, in line with recent levels, according to Markit.

Playtika declined to comment.

2020 Debtwire

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