Playstudios, a developer of free-to-play mobile and social games, on Friday unveiled its financial results for the three months and year ending December 31, 2021.
In the fourth quarter of 2021, the company reported net revenue of $71.9m, up 12.4% compared to $64m during Q4 2020. Officials said the increase was impacted by the introductions of Tetris during the quarter and myVEGAS Bingo and MGM Slots Live earlier in 2021, as well as increased advertising revenue.
Net income during the recently ended quarter was $600,000, a sharp upswing from a net loss of $10.8m during the fourth quarter of 2020.
AEBITDA was $12.0m for Q4 2021, up from $8.8m during the fourth quarter of 2020. The company attributed the increase to the impact of the increased revenue, partially offset by costs associated with the ongoing investments and other expenses related to the launch of myVEGAS Bingo earlier in 2021, along with the investments in other game development initiatives.
For full year 2021, Playstudios reported net revenue of $287.4m, up 6.5% from $269.9m in 2020. The company said this increase was impacted by introductions of new games and increased advertising revenue, partially offset by the lift attributable to the stay-at-home restrictions that were in place during 2020.
Net income for 2021 was $10.7m, compared to $12.8m in 2020.
AEBITDA was $39.5m, down from $58m in 2020. Officials said this decrease reflects costs associated with the ongoing investments and other expenses related to the launch of new games earlier in 2021, along with the investments in other game development initiatives, partially offset by the flow-through of increased revenue.
“This past year was transformational for our business,” Andrew Pascal, CEO of Playstudios, said in a statement. “We went public, introduced three new games, advanced our playAWARDS platform, and expanded our family of myVIP rewards partners. In doing so, we strengthened our standing as the leaders in rewarded play and positioned the company for future growth.”
Pascal noted many companies in the space are contending with the increasing complexity and costs of acquiring consumers, saying, “This brings into focus the importance of holding on to your existing audience, which plays to our strengths. The unique challenges of today’s market are intensifying the problem that our loyalty platform model solves. And it is for this reason that we remain so optimistic about our opportunity, and so committed to our strategy.”
As 2022 begins, Pascal said Playstudios plans to focus on further optimizing its franchise products while it invests in growing its newest games. He predicted myVEGAS Bingo and Tetris will enable it to establish a position in popular casual categories, while MGM Slots Live will expand its portfolio of social casino games.
“The impact of our model is supported by the year-over-year increases in program engagement and activity, with nearly half a million rewards purchased during the fourth quarter of 2021 with a retail value of $28.8m, representing year-over-year growth of 79.2% and 137.3%,” Pascal said.
