Playtika stock surges 12% after dropping sale plans and staying independent
Playtika, the mobile gaming company headed by co-founder Robert Antokol, decided to stay public.
The short version
- The stock jumped over 12% after exploring a sale with Morgan Stanley.
- The firm posted $674 million in third-quarter revenue.
Why it matters to you. For investors holding the stock, the bounce offers a sharp reversal after a rough stretch on the market.
Playtika Holding, the mobile gaming company, is staying independent after its board of directors called off a months-long search for a buyer. The stock jumped more than 12% on the news, according to Globes. Six months ago, the company hired Morgan Stanley, the big New York investment bank, to explore a sale, but the process ended without a deal for the second time in its history.
The strategic review followed a period that included acquiring SuperPlay, an Israeli game developer. Playtika's stock recently hit an all-time low and held a market capitalization of $807 million before the jump. For the third quarter, Playtika reported revenue of $674 million, beating expectations of a decline.
Direct-to-Consumer sales grew 31.4% from the same period last year. GAAP-based net profit reached $40.4 million, while adjusted EBITDA climbed 15.9% to $252 million. The company held $595 million in cash at the end of the quarter and reaffirmed its annual revenue guidance of $2.75 to $2.85 billion.
"The Board believes this path best positions the company to create long-term value for shareholders," the company stated. CFO Tae Lee pointed to disciplined marketing expenses that helped drive record adjusted EBITDA. Antokol highlighted strong growth in titles like Disney Solitaire and June's Journey.
