VISIT WWW.ELADKUSHNIR.WORDPRESS.COM TO SEE AN UP TO DATE VERSION OF THIS LECTURE (Q2/Q3 2016) State of the Social Casino Industry Lecture Q4 2014. Given at Casual Connect Amsterdam during Feb 2015. Follow my blog at www.eladkushnir.wordpress.com for more gaming industry content.

1. STATE OF THE SOCIAL CASINO INDUSTRY,
Q4 2014
Elad Kushnir, VP of Business Development, Playtika
Blog: www.eladkushnir.wordpress.com
Twitter: @eladkushnir

2. 2
PLAYTIKA OVERVIEW
 FOUNDED IN 2010
 SOCIAL CASINO GLOBAL CATEGORY LEADER
 10 GAMES
 13 PLATFORMS
 1000+ EMPLOYEES

3. 3
PLAYTIKA OVERVIEW
12 GLOBAL OFFICES
HEAD QUARTERS IN TEL AVIV, ISRAEL

4. 4
GAMING MARKET
GAMING MARKET OVERVIEW

5. GLOBAL GAMES MARKET 2013-2017E (BN$)
5
Source: Newzoo

6. MOBILE GAMING REVENUES PER REGION 2014
6
$5.7Bn $4.6Bn
$13.6Bn$0.6Bn
MOBILE REVENUES MOBILE REVENUES
MOBILE REVENUES MOBILE REVENUES
Source: Newzoo, Global Games Market Report Premium, January 2015 Update
North America
South America
Europe / CES / EMEA
Asia Pacific

7. 7
SOCIAL CASINO
SOCIAL CASINO MARKET OVERVIEW

8. 8
SOCIAL CASINO IN CONTEXT
SOCIAL CASINO
GAMBLING

9. SOCIAL CASINO: MARKET SIZE 2012-2017E
9
* OUR ESTIMATE IS THAT THERE ARE $200-$400M “HIDDEN” REVENUES IN EMERGING MARKETS
Source: Eilers
Research

10. 10
SOCIAL CASINO VS OTHER GAMING CATEGORIES
Source: Distimo

11. 11
4 TYPES OF INDUSTRY PLAYERS
OFFLINE CASINO SUPPLIER
OFFLINE CASINO OPERATOR
REAL MONEY ONLINE CASINO
SOCIAL GAMING OPERATOR
PROVEN
CONTENT
BRAND
EQUITY /CROSS
PROMO
DIGITAL
CASINO
EXPERIENCE
AGILITY,
SOCIAL &
MOBILE
EXPERIENCE

12. 12
THE COMPETITIVE LANDSCAPE
+ HUNDREDS MORE
PLAYTIKA ~22%
IGT ~11%
ZYNGA ~9%
BIG FISH ~8%
GSN ~7%
TIER 1 ~57%
TIER 2
~22%
TIER 3
~21%

13. 13
SOCIAL CASINO
TRENDS AND REALITIES

14. 14
MOBILE CONTINUES TO DOMINATE
ADDING THE “HIDDEN” REVENUES FROM EMERGING MARKETS, MOBILE WILL
REPRESENT 61% OF THE MARKET
Source: Eilers
Research

15. 15
REGIONAL FOCUS / FRAGMENTATION
NORTH AMERICA
CY14 REVS: 1,018M$
TOP TITLES EUROPE
CY14 REVS: 158M$
TOP TITLES
APAC
CY14 REVS: 363M$
TOP TITLES:
LATAM
CY14 REVS: 32M$
TOP TITLES:
MEA
CY14 REVS: 8M$
TOP TITLES:
Source: Eilers ResearchNote: Top Titles are based on top grossing ranks in tier 1 countries in each continent

16. 16
THE (PAINFUL) CPI TREND
CPI on Android had the largest increase in 2014, nearly 70%.
AVG. CPI 2014
~5$
~4$
Source: Playtika Research Department
~3$

17. DEVELOPER BRANDS
17
BRANDED CONTENT
THIS TREND IS CROSS-GENRE. MORE COMING SOON

18. 18
SOCIAL CASINO Q4 M&A UPDATE
$885M
$100M

19. 19
SOCIAL CASINO 2014 M&A SUMMARY
DATE TARGET ACQUIRER PRICE
NOV 2014 $885M
OCT 2014 $100M
JULY 2014 $100M
FEB 2014 $165M
FEB 2014 ~$90M*
2014 TOTAL $1.24B
* http://www.globes.co.il/en/article-caesars-acquires-pacific-interactive-for-90m-1000918327

20. 20
QUICK RECAP
• The games market continues to grow and will generate, 106.13BN$ by 2017
• In 2014 APAC generated 13.6BN$ from mobile gaming, the largest revenue among all
regions.
• ~10% of app store revenues come from Social Casino, mostly on mobile.
• Social casino market is dominated by 4 types of interested parties all of which have a
different competitive advantage.
• Mobile is the present and the future. Expected to take 75% of the market by year end.
• Regional focus and fragmentation will become the mainstream
• CPI on the rise on all platform. Social Casino more expensive than other genres
• The Social Casino M&A trend is expected to continue driven by offline legacy pivots

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THANKS FOR LISTENING!
PLAYTIKA IS CONSTANTLY LOOKING FOR OPPORTUNITIES
PLEASE CONTACT ME AT ELADK(AT)PLAYTIKA.COM IF YOU HAVE ANY
IDEAS FOR US.
FOLLOW ME ON TWITTER @ELADKUSHNIR
FOLLOW MY BLOG HTTP://ELADKUSHNIR.WORDPRESS.COM