PlayStudios reports earnings, launches game ahead of public debut
Social gaming company PlayStudios gave investors a sneak peak of its earnings as it nears its public debut.
The Las Vegas-based company announced last month that it would go public by merging with a blank-check company led by former MGM Resorts International CEO Jim Murren. Partners in the deal include MGM Resorts, Cirque du Soleil, Wolfgang Puck Fine Dining Group and Allegiant Air.
Net revenues were up in the fourth quarter and full year, but the company reported a net loss of $10.8 million in the fourth quarter prompted by the restructuring of its commercial arrangement with MGM Resorts and development costs for its latest free-to-play game, myVEGAS Bingo, and an upcoming role-playing game.
“We’re encouraged by the growth that is reflected in our year-end results, and the momentum we carried into the first quarter,” PlayStudios CEO Andrew Pascal said in a Wednesday news release. “We expect our performance in 2021 to be bolstered by the recent launch of our newest addition to our portfolio, myVEGAS Bingo.”
The company reported $64 million in revenue in the fourth quarter and $269.9 million in the full year, which were up 12.9 percent and 12.7 from the same periods the year prior, respectively. Net income was $12.8 million for the full year. The results are preliminary, and subject to the completion of the company’s year-end financial reporting process.
The company is set to merge with Murren’s special purpose acquisition company, Acies Acquisition Corp., in the second quarter, which would allow PlayStudios to start trading on the Nasdaq under MYPS. The transaction values PlayStudios at roughly $1.1 billion.
The company has continued to innovate in the months leading up to the merger. On Monday, it entered the casual bingo market with the launch of myVEGAS Bingo, a free-to-play game that offers real-life rewards. Pascal said the bingo market is “one of the fastest growing game categories.”
“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,” Pascal said in the Wednesday statement.
Contact Bailey Schulz at bschulz@reviewjournal.com. Follow @bailey_schulz on Twitter.
