Release Date: March 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the timing and integration of the new sweepstakes initiatives and the Tetris game? A: Andrew Pascal, CEO: The sweepstakes market is growing rapidly, and despite some regulatory risks, it remains a significant opportunity. We plan to launch our initial offering in the coming months as a separate solution from our existing games. We'll scale up gradually and integrate these features into our core games, depending on the regulatory environment. We have not included any revenue from these initiatives in our 2025 guidance as we want to ensure clarity on their potential before doing so.
Q: What caused the significant decline in the retail value of purchases through the Play Awards program? A: Andrew Pascal, CEO: We revisited and streamlined our rewards offerings, eliminating some partners and focusing on core value propositions. This reset led to an expected initial decline in redemption activity, which we anticipate will ramp back up over time. The decline also reflects the overall reduction in play volume, partly due to the impact of sweepstakes.
Q: How are you balancing development needs with a reduced workforce under the reinvention plan? A: Andrew Pascal, CEO: We've reduced our workforce by over 30% but are leveraging third-party development capacities and shifting team compositions to lower-cost regions. Additionally, we're utilizing artificial intelligence in creative and development processes to maintain efficiency.
Q: Has there been any change in your M&A strategy with the new company structure? A: Jason Han, Chief Strategy Officer: Our M&A strategy remains aligned with our overall business strategy. While market pressures have made it challenging to seize opportunities, we maintain an active pipeline and remain disciplined in pursuing acquisitions that fit our strategic goals.
Q: Do you see the growth of sweepstakes games as a structural shift impacting social casino games? A: Andrew Pascal, CEO: The growth of sweepstakes games represents a new dimension of value rather than a genre shift. The underlying model is similar to social casino games, and many players are transitioning to sweepstakes-enabled platforms. We see this as a structural shift due to the added value proposition.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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