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State of the Social Casino Industry Q2/Q3 2016Elad Kushnir SVP Business Development, Playtika
Nov 1 2016
Social Casino global market leaderPLAYTIKA OVERVIEW
Founded in
20106
Games13
Platforms1350Employees
14 Global offices; Head Quartered in Herzeliya, IsraelPLAYTIKA OVERVIEW
PLAYTIKAS EVOLUTION
2016 Acquired by Giant Interactive
PLAYTIKA IN NUMBERS
$725MRevenues in 2015
12 Platforms
20MMAU
60%Rev from Mobile
6MDAU
Market Overview
7
SOCIAL CASINO
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
8
= Social Casino
Free 2 PlayBusiness Model
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
SOCIAL CASINO IN CONTEXT
SOCIAL CASINO MARKET SIZE
2012 2013 2014 2015 2016E 2017E 2018E0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
0.981.20 1.26 1.21
1.09
0.900.72
0.35
0.83
1.52
2.10
2.633.08
3.45
1.33 BN$
2.03 BN$
2.78 BN$
3.31 BN$3.72 BN$
3.98 BN$4.17 BN$
FB Mobile Gross Revenues
Source: Eilers Research
INDUSTRY OVERVIEW: MARKET LEADERSHIP Q3 2016
+ hundreds more
Playtika 25.1%Scientific Games 8.4%Zynga 8.4%IGT 6.7%Aristocrat 6.3%Tier 1 54.9%
Tier 2
28.1 %
Tier 3 17%
Source: Eilers Research
SOCIAL CASINO GENRES SHARE OF TOTAL MARKET
11
79%
13%
7%
1%
Slots Poker Bingo Other
Game Category Leading Product Leading Company
Slots Slotomania
Poker Zynga PokerBingo Bingo Blitz
Other NA NA
12
Source: Eilers Research
TOP 10 GAMES BY $ IS SOCIAL CASINO Q3 2016# Game Publisher Q3 $1 Slotomania $105M
2 Double Down $63M
3 Heart of Vegas $55M
4 House of Fun $45M
5 Big Fish Casino $43M
6 Jackpot Party Casino $40M
7 Caesars Casino $33M
8 DoubleU Casino $31M
9 Texas Holdem Poker $28M
10 Bingo Blitz $26M
13
TRENDS AND REALITIES
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
MARKET PLAYERS
Casino Suppliers Games Companies Casino OperatorsProven Content Platform Experience Brand and Cross Promo
3 market entry strategies have emerged. SLOT SUPPLIERS ARE “ALL IN”
15
M&A Strategic Partnerships Licensing
Growth from Niche Products
16
Tota
l Pot
entia
l Use
r Bas
e
Total Potential Revenue
• Male Oriented
• Classic Content
• Truly Social Slots
• Regional Content
Niche Markets
Mass Markets
Focusing on growth within the gameShift in Focus for Mature games
17
Loyalty Programs Meta Game Features
Monetization Optimization Slots Content
Game Economy Optimization
Out of the Box Marketing Tactics
FTD Conversion Optimization Customer Support
One of the biggest upsides is in existing user base. Only a fraction of users have ever paid.
CPI / ROI / WTF?
18
Many More
Clear Competitive Advantage / Data and Scale Lacking performance sustainability at scale
19
MERGERS AND ACQUISITIONS
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
M&A Update Q2 / Q3
20
Scene 53$4.4B $120M$3-10M
(Estimated)
Source: Eilers Research
M&A TRANSACTIONS 2010-2016
*Non Playtika Revenue is Estimated / Playtika Revenue is Actual
Year Target Acquirer PriceJun-10 $18M-$48MMay-11 ~$130M
Nov-12 $40M
Dec-12 $500M
Dec-12 ~$100M
Feb-14 $165MFeb-14 ~$85M
Jun-14 $100M
Oct -14 $100M
Nov-14 $885M
Source: Eilers Research
M&A TRANSACTIONS 2010-2016
*Non Playtika Revenue is Estimated / Playtika Revenue is Actual
Year Target Acquirer Price
March-15 ~$5M
March-15 $10M
Jun-15 $7.5M
July-15 $18M
Aug-15 $39.2M
Aug-15 DGN Games $27.5M
Sep-15 $60M-$110M
Nov-15 $26M
Feb-16 ~$2MJuly-16 4.4$ BNAug-16 Scene53 ~$3M-$10MAug-16 $170M
TOTAL M&A TRANSACTIONS IN SOCIAL CASINO TO DATE
23
~$7 BN
