Israel's Playtika says to remain independent; posts flat Q3 revenue

Overview

• Israel mobile gaming firm's Q3 revenue was flat yr/yr, down 7.8% sequentially

• Adjusted EBITDA rose 15.9% yr/yr, with margin expanding to 37.4%

• Board concluded strategic review, company to remain independent and publicly traded

Outlook

• Playtika reaffirms 2026 revenue guidance of $2.75 bln to $2.85 bln

• Company expects 2026 adjusted EBITDA of $750 mln to $790 mln, midpoint likely

• Playtika says it expects full-year results near the midpoint of guidance ranges

Result Drivers

• GAME PERFORMANCE MIX - Co said strong yr/yr growth in Disney Solitaire and June’s Journey offset declines in other titles

• LOWER MARKETING SPEND - Co attributed margin expansion to planned reduction in marketing expenses

• PAYER CONVERSION - Co said payer conversion rate improved yr/yr, though average daily paying users declined

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Nov 4 - Figma's Q3 revenue jumps 43% and beats estimates; raises FY revenue outlook

• Nov 3 - Duolingo Q3 daily active users accelerated to 29% on gains in every region; shares soar

• Nov 4 - Klaviyo's Q3 revenue beats estimates; raises FY outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)