Social game developer PlayStudios reported that it will post results for the fourth quarter of 2020 showing an increase in revenues, thanks to investment in new products.
Officials of PlayStudios, which is in the process of going public through a merger with a special purpose acquisition company, said in a statement last week that revenue for the quarter ended December 31 is estimated at $64 million, a 12.9 percent increase from the same period in 2019. For the year, revenue is expected to come in at $269.9 million, an increase of 12.7 percent over 2019.
“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 the statement, published by Native Business.
Net income for 2020 was $12.8 million. The fourth quarter yielded a net loss of $10.8 million, due to a one-time accrual of expenses related to the restructuring of a commercial agreement with casino operator MGM Resorts International. PlayStudios offers the social gaming arm for MGM Resorts through the company’s myVegas platform.
PlayStudios also incurred costs in the last quarter related to the launch of the just-released myVegas Bingo and the forthcoming Kingdom Boss RPG game. These items reduced cash flow for the three-month period to $8.8 million, and $58 million for the full year.
“Bingo is among the fastest-growing game categories,” Pascal said. “We believe our combination of real-world rewards, standard-setting creative execution and established brands will make it a standout product in the coming months and quarters.”
In February PlayStudios announced its merger with Acies Acquisition Corp., a publicly traded special purpose acquisition company led by former MGM Resorts Chairman and CEO Jim Murren, in a deal that valued the game developer at $1.1 billion. PlayStudios shares will be listed on the Nasdaq exchange.
