Revenues in 9M 2019 - 9M 2020
Invest in IPO Playtika
Playtika is a leading developer of casino and other mobile games. The company has produced nine games ranking in the top 100 highest grossing mobile games in the US, based on total in-app purchases. Playtika has more games in this list of top 100 games than any other company. The most popular game is called Slotomania, with 1.5 million average daily active users and a Facebook Supergroup with over 640,000 members.
Playtika primarily grows its game portfolio through acquisitions. Once the company acquires games, it enhances the scale and profitability of those games by applying live operations services and technology platform, the Playtika Boost Platform. Playtika was founded in 2010 in Israel.
Mobile technology has reshaped the role that games play in our lives. Mobile games have become a compelling way for people to interact with family and friends, and even build new game-based relationships.
Mobile gaming is the fastest growing component within the video games industry. According to Newzoo, approximately 2.5 billion users spent time and money on mobile games in 2019 and mobile gaming revenue is expected to grow to approximately $114.4 billion in 2023, representing a compound annual growth rate of 9.8% from $86.3 billion in 2020.
Playtika relies on third-party platforms, such as the iOS App Store, Facebook, and Google Play Store, to distribute its games and collect revenues, and such platforms may adversely change their policies.
A limited number of games have generated a majority of the company's revenues, and Playtika may be unable to offset any declines in revenues from its top games.
A small percentage of total users have generated a majority of revenues, and Playtika may be unable to attract new paying or retain existing paying users and maintain their spending levels.
Playtika (PLTK) plans to sell 69.5 million shares at a price range of $22 to $24. The company intends to raise as much as $1.6B in an IPO of its common stock at about $10B valuation. The company booked $2.3B in revenue for the last 12 months. Gross margin is around 70%. The revenue grew by 28.5% YoY in the first 9 months of 2020. Playtika is profitable and has a positive free cash flow.
Playtika competes for users and their engagement hours with global gaming companies, such as Tencent Holdings, Activision Blizzard, Electronic Arts, Take-Two, Zynga, AppLovin and Product Madness/Big Fish Games.
Playtika is asking investors to pay 4.4x sales, which is a discount to the industry average value of 7.2x. The company has significantly increased its revenue over the past few years, has shown positive free cash flows, operates in a fast growing and large market. The expected return on investment is high, more than 40%.
2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.
We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».
The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.
After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.
Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.
From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.
The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.
3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.
1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.
20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.
Our risk managers ensure proper support throughout the entire transaction.
IN THE PROFIT FROM THE FIRST DAY
Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.
LOW ENTRY THRESHOLD
Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.