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State of the Social Casino Industry Q3 2015 Elad Kushnir, Vice President of Business Development Blog:

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Presentation on theme: "State of the Social Casino Industry Q3 2015 Elad Kushnir, Vice President of Business Development Blog:"— Presentation transcript:

1 State of the Social Casino Industry Q3 2015 Elad Kushnir, Vice President of Business Development Blog: www.eladkushnir.wordpress.com Twitter: @eladkushnir CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

2 Playtika is the Social Casino Global Market Leader 2 CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 $549 Revenues in 2014 million 5.7 DAU million 18.5 MAU million $0.27 DARPU 12 Global Offices, Over 1100 Playtikans

3 Market Overview 3 SOCIAL CASINO CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

4 4 = Social Casino Free 2 Play Business Model CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 SOCIAL CASINO IN CONTEXT

5 5 SOCIAL CASINO MARKET SIZE CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research

6 6 GLOBAL GAMES REVENUES Vs. SOCIAL CASINO 2015 B B B ~4% of Global Games Revenues CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research, New Zoo

7 7 MARKET PLAYERS CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Casino Suppliers Offline Casino Operators RMG Operators Social Games Companies Proven Content Mobile & Social Platform Experience Brand and Cross Promotion Digital Casino Experience

8 8 + HUNDREDS MORE PLAYTIKA ~22% ZYNGA ~11% IGT ~9.5% GSN ~5.9% CHURCHILL DOWNS ~5.7% SCIENTIFIC GAMES ~5.4% TIER 1 ~59.5% TIER 2 ~21.3% TIER 3 ~19.2% CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research COMPETATIVE LANDSCAPE Q3 2015

9 9 TRENDS AND REALITIES CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

10 10 THE PORTFOLIO STRATEGY GOES MAINSTREAM CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

11 EXPANDED PRODUCT OFFERINGS 11 CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Classic Slots

12 LOYALTY PROGRAMS ARE THE STANDARD 12 CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

13 A B2B POSTMORTEM 13 My slide from Casual Connect San Fran 2014  Quality of content, game play, support, and overall experience is hard to achieve in an off the shelf product.  A one size fits all approach doesn’t work in the entertainment industry CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

14 14 MERGERS AND ACQUISITIONS CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

15 15 SOCIAL CASINO 2015 M&A SUMMARY CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Playtika Research Dep DateTargetAcquirerPrice MAR 15 ???? MAR 15 ~$10M JUN 15 $7.5M JUL 15 $18M AUG 15 $39.2M AUG 15 $27.5M SEP 15 $25.6M SEP 15 $60-110M DGN GAMES

16 QUICK RECAP The Social Casino industry is growing steadily and consistently. Worth $3.46B this year. The Social Casino niche generates ~4% of global games revenues 4 types of companies dominate the social casino landscape The top tier players continue to strengthen their market share controlling almost 60% of the market. Trends and Realities The Portfolio strategy is key to success Classic slots are a new sub-niche with real potential Loyalty programs are standard practice B2B has yet to scale M&A trend continues albeit at a smaller scale 16

17 THANK YOU! Elad Kushnir E: eladk@playtika.com CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015


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