Social gaming developer PlayStudios, which will soon become a publicly traded company, said it expects to post revenue increases for the fourth quarter and all of 2020.
In a statement Wednesday, the Las Vegas-based company said revenue for the quarter that ended Dec. 31, was estimated at $64 million, a 12.9% 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%. 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 a statement.
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.
Pascal said that the release of myVegas Bingo, a free-to-play mobile game that allows players to travel on a virtual Vegas strip, and a collaboration with Texas-based Boss Fight Entertainment, bodes well for the company going forward.
“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 stand-out product in the coming months and quarters.”
In February PlayStudios merged with Acies Acquisition Corp., a publicly traded special purpose acquisition company led by former MGM Resorts Chairman and CEO Jim Murren. The deal valued the Las Vegas-based game developer at $1.1 billion.
Through the transaction, which includes several institutional investors providing a private investment in public equity (PIPE) of $250 million, shares of PlayStudios will become available on the Nasdaq.
