News Order Online 6 May 2022
Playstudios reports $25.2m net loss for Q1
Gambling Insider
Playstudios published their first quarter financial reports, which showed a nearly 5% decrease in revenues year-on.
In Q1 2022 the revenue of the company was $70.5m, an improvement on the previous year’s $74m.
Playstudios attributed this drop to the pandemic, specifically “Covid-related stimulus checks on player engagement monetisation behaviours.” This revenue decrease, alongside “certain non-cash charges,” contributed to the company suffering a net loss of $25.2m, a significant year-on-year decline from Q1 2021 when it produced nearly $6m in net income.
Adjusted EBITDA was likewise down, amounting to $9.1m, a 37% decrease from the prior-year period’s $14.5m. Consumer engagement, however, was higher. Year-over-year, rewards purchases rose 54.2%.
According to Playstudios’ CEO, Andrew Pascal, this represents the “the highest level of engagement we’ve seen since the onset of the Covid pandemic.”
“Entering 2022, our focus was on enhancing the value proposition of our PlayAwards loyalty platform, preparing to offer it as a stand-alone service to select third party developers,” said Pascal.
He added: “We also focused on expanding our capacity by adding some amazing new talent, enhancing the capabilities of our European and Asian studios.
“On the games front, we acquired the full rights to MyVegas Bingo and assumed the ongoing development and operations of the product.”
Playstudios has reaffirmed its revenue estimates for the full year, anticipating that revenues will be between $305m-$325m by 2022. In conclusion, Pascal said: “Our strategic priorities remain unchanged.
“As traditional leisure and retail businesses become more dependent on digital platforms to reach their audiences, we believe we are well positioned to deliver the scalable, cost-efficient consumer engagement they’re seeking.”
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