The Israeli gaming company Politics Reported its results for the fourth quarter and for 2021 as a whole. In addition, a year and a month after it became a public company, the company is exploring the possibility of being sold and thus effectively being wiped out of trading. The stock soared in response by 11% in late trading on Wall Street.
The company has announced the initiation of a process to examine alternative strategies for maximizing the company’s value for its shareholders. “As part of the process, the board will examine the range of alternatives available including a strategic deal or the sale of part, or most of the company’s shares, to a strategic entity that will be selected by the company’s board,” the statement said.
Playtica has appointed investment banker RAINE as its financial advisor and Latham & Watkins LLP as its legal advisor.
Robert Antocol, Chairman and CEO of Politica, said that “The move they initiated is for one purpose – to maximize the great value inherent in Politics for its shareholders. Since its inception, Playtica has been a company focused on growing its core business, investing in its human capital and technology. A company that is the world leader in the field of mobile entertainment, I am very proud of our achievements. “
The stock has fallen 33% since the IPO
Shares of Playtica have fallen 33% since the IPO in January 2021 to a price that reflects a value for the company of $ 7.4 billion (compared to about $ 11 billion in the IPO). Following the report it went up in late trading on Wall Street although is still trading below the issue price.
It was recently reported that the controlling shareholder in the company, a Chinese corporation controlled by Yuzhou Shi, has decided to explore options of selling some of its shares in Playtica, which constitute 15% -25% of the company’s share capital.
In the fourth quarter of this year, Playtica’s revenues grew by 13.2% compared to the same period last year and amounted to $ 649 million. Net income for the quarter grew to $ 102.3 million compared to $ 76 million during the spending period. Annual revenues in 2021 increased by 8.9% compared to 2020.
The positive trend of Playtica continues well into 2022 when the company notes that January alone recorded A 9.2% increase in revenue compared to the same period last year – so this is a record month for the company. The daily number of players in January grew by12.8% compared to January last year.
During the fourth quarter, there was an increase of 31.5% in the results of casual games, which today constitute 52% of the company’s total revenue. Veteran core game Bingo Blitz showed 17.7% growth compared to the same period last year.