Why Mobile Game Company Playtika Is Surging After Hours

Mobile gaming company Platika Holding Corp (NASDAQ: PLTK) announced fourth quarter and full fiscal year financial results after market close.

What Happened: Playtika reported fourth-quarter revenue of $649 million, up 13.2% year-over-year. The company reported full fiscal year revenue of $2.58 billion, up 8.9% year-over-year.

The company’s “World Series of Poker” game grew 7.7% year-over-year in the quarter. Core franchise games “Bingo Blitz” and “Caesars Casino” had revenue growth of 17.7% year-over-year and 7.1% year-over-year, respectively.

Playtika also reported that January 2022 revenue is up 9.2% year-over-year and hit a monthly record for the company.

Related Link: Playtika IPO: What Investors Need To Know 

What’s Next: Playtika announced its Board of Directors initiated a process to evaluate strategic alternatives. The company said this could lead to a sale of the company or other transactions.

Playtika retained The Raine Group as advisor to help with the strategic review process.

“The goal of the strategic evaluation process we are announcing today is to ensure we are taking every step possible to maximize value for our shareholders,” Playtika CEO Robert Antokol said.

The move to explore a potential sale comes after Take-Two Interactive Software (NASDAQ:TTW) announced it would acquire mobile game company Zynga Inc (NASDAQ: ZNGA). 

Playtika went public in January 2021 with shares priced at $27.

PLTK Price Action: Shares are up 23% to $22.05 in after-hours trading.