Social gaming developer Playstudios has released its preliminary financial results for Q4 and the full year 2020, showing revenues of $64.0m and $269.9m respectively for the periods.
Revenue growth was 12.7% year-on-year for 2020.
Following its operating expenses which were not detailed, the company expects to post adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $32.8m, after adjusting for the impact of costs capitalized for internal-use software projects. This represents an increase in adjusted EBITDA of 15.1%.
Further costs included depreciation and amortization, at $22.2m, stock-based compensation expenses of $3.5m, and restructuring expenses of $20.1m.
Across the year, the developer received an income tax benefit of $1.7m for net income of $12.8m.
Revenue growth was 12.9% year-on-year for the fourth quarter, with the developer expecting to post a net loss of $10.8m for the period.
It said that Q4 net income was impacted by a one-time accrual of expenses relating to the restructuring of the company’s commercial arrangement with MGM Resorts International.
It expects Q4 adjusted EBITDA of $1.8m, a reduction of 66.1% year-on-year.
Of PlayStudios’ $20.1m in full year restructuring costs, $20.0m was attributed to the fourth quarter. Additional costs included development costs related to its Myvegas Bingo product and another upcoming game, Kingdom Boss.
Other costs included depreciation and amortization, at $5.8m, and stock-based compensation expenses of $900,000. The company received an income tax benefit of $6.8m for the period.
“We’re encouraged by the growth that is reflected in our year-end results, and the momentum we carried into the first quarter,” said Andrew Pascal, the developer’s chief executive.
He went on to say that the company expects its performance in 2021 to be bolstered by the launch of its new Myvegas Bingo game.
“Bingo is among the fastest-growing game categories, and we believe our combination of real-world rewards, standard-setting creative execution, and established brands will make it a stand-out product in the coming months and quarters,” he concluded.
In February, Playstudios announced its upcoming merger with special purpose acquisition company Acies Acquisition Corporation, with the intention of listing on the Nasdaq Stock Exchange.
Acies was formed in October 2020, and is chaired by MGM Resorts’ former chairman and chief executive, Jim Murren, who left the operator in March 2020 after leading the company for 12 years.