Company registration number 07728726 (England and Wales)
PLAYTIKA UK - HOUSE OF FUN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PLAYTIKA UK - HOUSE OF FUN LIMITED
COMPANY INFORMATION
Directors
Craig Abrahams
Thomas Kulcsar
Company number
07728726
Registered office
Quadrant House - Floor 6
4 Thomas More Square
London
E1W 1YW
Auditor
UHY Hacker Young
Quadrant House
4 Thomas More Square
London
E1W 1YW
PLAYTIKA UK - HOUSE OF FUN LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 11
Income statement
12
Statement of financial position
13 - 14
Statement of changes in equity
15
Statement of cash flows
16
Notes to the financial statements
17 - 39
PLAYTIKA UK - HOUSE OF FUN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

Playtika UK - House of Fun is a pioneer in the social games space, introducing free-to-play slots games to social networks. It is the creator of the popular game House of Fun, operates across multiple social networks and platforms including Apple iOS, Google Android, Facebook, Amazon and Windows. House of Fun is played by nearly 300 thousand people every month in 166 countries.

The Company forms part of the Playtika Group (the “Group”), the immediate parent company is Playtika Holding Corp and the ultimate parent company of the Group is Alpha Frontier Limited. The Company is a limited company, domiciled and incorporated in the UK.

Review of the business

The Company’s revenue for the year ended 31 December 2023 was $186,004,117 (2022: $200,176,914). The company made a profit after taxation of $26,962,896 (2022: $85,665,721). Dividends of $nil (2022: $nil) were paid. The company's net assets at 31 December 2023 were $618,067,893 (2022: $591,215,914).

 

Key performance indicators

 

We measure our online business by using several key financial metrics, which include revenue, adjusted EBITDA before exchange rate gains or losses, ARPU and ARPPU, and operating metrics, which include DAUs, MAUs and MUUs. References to “DAUs” mean daily active users of our games, “MAUs” mean monthly active users of our games, “MUUs” mean monthly unique users of our games, “MUPs” mean monthly unique payers of our games, “ARPU” means average daily revenues per average DAU and "ARPPU" which means average revenue to per paying user. Unless otherwise indicated, these metrics are based on internally-derived measurements across all platforms on which our game is played. Our operating metrics help us to understand and measure the engagement levels of our players, the size of our audience and our reach. Our major key metrics for 2023 are noted in the table below:

 

 

         Q1 2023     Q2 2023     Q3 2023 Q4 2023

 

Average DAUs     305,592      289,912      280,003     273,150

 

Average MAUs     843,905     808,640     856,066     898,229

 

Average MUPs     19,203     17,979      16,688      16,407

 

Net ARPU     1.41      1.43     1.37     1.46

 

Net ARPPU     22.44     23.09     22.94     24.33

 

 

The directors assess the revenue and profit after tax for the financial year to be satisfactory.

 

PLAYTIKA UK - HOUSE OF FUN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Future Developments

The directors do not expect any significant changes to the current strategy of Playtika UK – House of Fun Limited, there will be continued investment to develop high quality video games as well as acquisitions to grow the range of content under the Playtika brand.

Principal risks and uncertainties

R&D costs of developing new and existing games far exceeds its future sales revenue.

Section 172 Statement

The Directors insist on high operating standards and fiscal discipline and routinely engage with management and employees of the company to understand the underlying issues within the organization. Additionally, the Board looks outside the organization at macro factors affecting the business. The Directors consider all known facts when developing strategic decisions and long-term plans, taking into account their likely consequences for the Company.

The Directors and management are committed to the interests and well-being of Playtika UK House of Fun’s employees. Playtika UK House of Fun is committed to the highest levels of integrity and transparency possible with employees and other stakeholders. Safety initiatives, consistent training, strong benefit packages and open dialogue between all employees are just a few of the ways the Company ensures its employees improve skill sets and work hand-in-hand with management to improve all aspects of the Group’s performance.

Other stakeholders include, customers, suppliers, debt holders, industry associations, government and regulatory agencies, media, local communities and shareholders. The Board, both individually and together, consider that they have acted in the way they consider would be most likely to promote the success of the Company as a whole. In order to do this, there is a process of dialogue with stakeholders to understand the issues that they might have. Playtika UK House of Fun believes that any supplier/customer relationship must be mutually beneficial and the Company is known for its commitment to details to its customers. Communications with debt holders and shareholders occur on an ongoing basis and as questions arise. The company also communicates through social media.

The Directors are committed to positive involvement in the local communities where we operate. Additionally, Playtika UK House of Fun strictly follows environmental regulations and supports sustainability practices where possible.

 

Integrity is a key tenet for Playtika UK House of Fun’s Directors and employees. Playtika UK House of Fun believes that any partnership must benefit both parties. We strive to provide our stakeholders with timely and informative responses and are always striving to meet or exceed customers’ needs.

 

The Board recognises its responsibilities under section 172 as outlined above and has acted at all times in a way consistent with promoting the success of the Company with regard to all stakeholders.

PLAYTIKA UK - HOUSE OF FUN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Craig Abrahams
Director
7 May 2025
PLAYTIKA UK - HOUSE OF FUN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 12.

 

Going Concern

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

The company markets a diverse product base across the industry sector and operates in varied market sectors and from a number of operational bases.

 

The increasingly digital, recurring and cash-generative nature of our operations remains one of our fundamental strength. With a strong balance sheet, low capital intensity and a track record of disciplined capital allocation, we have substantial flexibility as we navigate through an uncertain environment. However, we will continue to monitor developments for potential risks to the business and follow the guidance of national policies and advice.

 

Due to the exceptional circumstances arising from the Russia-Ukraine conflict, that began on 24 February 2022 and at the date of preparation of these annual accounts, the company does not anticipate any type of involvement, in terms of operations and liquidity, arising from the situation. The company has experienced a slight decline in European revenue as a result of wider macro-economic factors, which includes but not limited to the impact of the conflict. The company has a significant research and development centre in Ukraine and at this time, the company is unable to estimate any specific impact to its business, financial condition or results of operation. The directors will continue to monitor this situation.

 

Liquidity is crucial to the business during these unprecedented times, and it is something that is monitored on a daily basis. Profitable trading, and judicious use of government support measures, mean that the company is working well within the limits of its funding facilities.

 

This situation will continue to be monitored closely.

 

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Craig Abrahams
Thomas Kulcsar
PLAYTIKA UK - HOUSE OF FUN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Supplier payment policy

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

Trade creditors of the company at the year end were equivalent to 1 day's purchases, based on the average daily amount invoiced by suppliers during the year.

Research and development

The company has invested $42.1m (2022: $50.7m) in research and development during the financial year. The company continues to focus on developing technologies to enhance the app and its user engagement.

In addition the company has capitalised expenditure of $1.5m (2022: $1.3m) for expenditure in the development phase for an internal research and development project where the company is satisfied that the criteria for an intangible asset are met

 

Disabled persons

The company has an anti-discrimination policy of which disability discrimination is part of this which covers training, career development and promotion. The company ensures hiring managers who are interview trained do not discriminate as part of the recruitment process. The company ensures that they make reasonable or legally required accommodation for any disadvantage caused by disability. The office can accommodate people with disability, e.g. the office is wheelchair accessible and the company carries out individual risk assessments for anyone that could be vulnerable in some way, e.g. pregnancy.

 

If an employee develops a disability while in employment by the company they are encouraged to raise this so the company can consider what accommodation or support may be appropriate.

Employee involvement

The directors ensure that the employees are informed of any significant matters affecting them and places considerable value on the involvement of the employees within the wider business and its performance.

 

Employees involvement is achieved through regular company wide all-hands calls, this gives the management team an opportunity to share the performance of the business, plans for the future and the financial and economic factors affecting the company's performance. As part of this call questions can be asked and recommendations made anonymously or publicly.

 

As part of the yearly performance appraisal, employees are awarded a bonus based on their personal objectives being met and the business unit's performance being in line with expected targets.

 

Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

PLAYTIKA UK - HOUSE OF FUN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Energy and carbon report

Under the criteria of the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, the company is considered a low energy user as it has consumed less than 40,000 kWh of energy during the current period. Therefore it is exempt from disclosure of greenhouse gas (GHG) emissions, energy consumption and energy efficiency actions.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

PLAYTIKA UK - HOUSE OF FUN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
On behalf of the board
Craig Abrahams
Director
7 May 2025
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLAYTIKA UK - HOUSE OF FUN LIMITED
- 8 -
Opinion

We have audited the financial statements of Playtika UK - House of Fun Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLAYTIKA UK - HOUSE OF FUN LIMITED (CONTINUED)
- 9 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLAYTIKA UK - HOUSE OF FUN LIMITED (CONTINUED)
- 10 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to company laws, tax compliance legislation, workplace regulations, employment related laws, rules adopted by the payment card networks, Data Protection Act and the General Data Protection Regulation 2016/679, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and potential management bias in the selection and application of significant accounting judgements and estimates. Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above; any instance of non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error. Fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through an act of collusion that would mitigate internal controls.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PLAYTIKA UK - HOUSE OF FUN LIMITED (CONTINUED)
- 11 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Anderson (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
8 May 2025
Chartered Accountants
Statutory Auditor
PLAYTIKA UK - HOUSE OF FUN LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
$
$
Revenue
5
186,004,117
200,176,914
Cost of sales
(38,670,091)
(42,495,967)
Gross profit
147,334,026
157,680,947
Other operating income
94,740
94,479
Administrative expenses
(120,406,284)
(94,131,436)
Operating profit
6
27,022,482
63,643,990
Investment revenues
9
21,537,145
41,774,840
Finance costs
10
(5,884,783)
(11,871,999)
Profit before taxation
42,674,844
93,546,831
Income tax expense
11
(15,711,948)
(7,881,110)
Profit and total comprehensive income for the year
26,962,896
85,665,721

The income statement has been prepared on the basis that all operations are continuing operations.

PLAYTIKA UK - HOUSE OF FUN LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
$
$
Non-current assets
Intangible assets
13
3,239,187
4,371,644
Investments
14
656,084,001
702,950,627
Deferred tax asset
23
524,250
275,624
659,847,438
707,597,895
Current assets
Trade and other receivables
17
18,656,021
14,449,389
Current tax recoverable
783,646
-
0
Cash and cash equivalents
23,947,523
12,425,413
43,387,190
26,874,802
Total assets
703,234,628
734,472,697
Current liabilities
Trade and other payables
22
26,359,616
30,944,446
Current tax liabilities
-
0
2,726,665
Borrowings
19
58,136,692
54,378,012
Deferred revenue
25
670,427
713,764
85,166,735
88,762,887
Net current liabilities
(41,779,545)
(61,888,085)
Non-current liabilities
Borrowings
19
-
0
54,493,896
Total liabilities
85,166,735
143,256,783
Net assets
618,067,893
591,215,914
Equity
Called up share capital
27
528
528
Share premium account
28
201,915,422
202,026,339
Retained earnings
416,151,943
389,189,047
Total equity
618,067,893
591,215,914
PLAYTIKA UK - HOUSE OF FUN LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 7 May 2025 and are signed on its behalf by:
Craig  Abrahams
Director
Company Registration No. 07728726
PLAYTIKA UK - HOUSE OF FUN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Share premium account
Retained earnings
Total
$
$
$
$
Balance at 1 January 2022
528
202,102,866
303,523,326
505,626,720
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
85,665,721
85,665,721
Other movements
-
(76,527)
-
0
(76,527)
Balances at 31 December 2022
528
202,026,339
389,189,047
591,215,914
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
26,962,896
26,962,896
Other movements
-
(110,917)
-
0
(110,917)
Balances at 31 December 2023
528
201,915,422
416,151,943
618,067,893
PLAYTIKA UK - HOUSE OF FUN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash generated from/(absorbed by) operations
33
62,412,255
(13,505,086)
Interest paid
(3,119,999)
(11,871,999)
Tax (paid)/refunded
(19,470,885)
488,826
Net cash inflow/(outflow) from operating activities
39,821,371
(24,888,259)
Investing activities
Capitalisation of internal use software costs
(1,492,115)
(1,317,753)
Purchase of subsidiaries
-
0
(243,891)
Purchase of associates
-
0
(25,000,000)
Receipts arising from loans made
5,266,626
-
0
Interest received
1,537,145
1,774,840
Dividends received
20,000,000
40,000,000
Net cash generated from investing activities
25,311,656
15,213,196
Financing activities
Taxes paid on parent entity's vested RSUs
(110,917)
(76,527)
Proceeds from borrowings
-
0
107,000,000
Repayment of borrowings
(53,500,000)
(241,938,904)
Net cash used in financing activities
(53,610,917)
(135,015,431)
Net increase/(decrease) in cash and cash equivalents
11,522,110
(144,690,494)
Cash and cash equivalents at beginning of year
12,425,413
157,115,907
Cash and cash equivalents at end of year
23,947,523
12,425,413
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Playtika UK - House of Fun Limited is a private company limited by shares incorporated in England and Wales. The registered office is Quadrant House - Floor 6, 4 Thomas More Square, London, E1W 1YW. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in $, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Playtika UK - House of Fun Limited is a wholly owned subsidiary of Playtika Holding Corporation and the results of Playtika UK - House of Fun Limited are included in the consolidated financial statements of Playtika Holding Corporation which are available from the registered office.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

 

The company markets a diverse product base across the industry sector and operates in varied market sectors and from a number of operational bases.

 

The increasingly digital, recurring and cash-generative nature of our operations remains one of our fundamental strength. With a strong balance sheet, low capital intensity and a track record of disciplined capital allocation, we have substantial flexibility as we navigate through an uncertain environment. However, we will continue to monitor developments for potential risks to the business and follow the guidance of national policies and advice.

 

Due to the exceptional circumstances arising from the Russia-Ukraine conflict, that began on 24 February 2022 and at the date of preparation of these annual accounts, the company does not anticipate any type of involvement, in terms of operations and liquidity, arising from the situation. The company has a significant research and development centre in Ukraine and at this time, the company is unable to estimate any specific impact to its business, financial condition or results of operation. The directors will continue to monitor this situation.

 

Liquidity is crucial to the business during these unprecedented times, and it is something that is monitored on a daily basis. Profitable trading, and judicious use of government support measures, mean that the company is working well within the limits of its funding facilities.

 

This situation will continue to be monitored closely.

 

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

The company primarily derive revenue from the sale of virtual items associated with our online games.

 

The company distributes its games to the end customer through Digital Storefronts and social networks. Within these Digital Storefronts, users can download the Company’s free-to-play games and can purchase virtual currency to obtain virtual goods or virtual goods directly (together, defined as “virtual items”).

 

The company recognises revenue at an amount which reflects the consideration that the Company expects to be entitled to receive in exchange for transferring goods or services to its customers.

 

For purposes of determining when the service has been provided to the player, we determined that the company's performance obligation is to provide on-going game services to players who purchased virtual items to gain an enhanced game-playing experience.

 

Accordingly, we categorise our virtual items as either consumable or durable. Consumable virtual items represent items that can be consumed by a specific player action. Most of our revenue consists of consumable virtual items, common characteristics of consumable virtual items may include items that are no longer displayed on the player’s game board after a short period of time, do not provide the player any continuing benefit following consumption, or often times enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognise revenue as the items are consumed, which is usually up to one week.

 

Advance payments received from customers for virtual items that are non-refundable and relate to non-cancellable contracts that specify our obligations are recorded to contract liabilities.

 

For most of the revenues generated from consumption of virtual items the Company has determined that it is generally acting as a principal and is the primary obligor to its end-users. Therefore, the Company recognises revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.4
Intangible assets other than goodwill

An intangible asset shall be recognised only when it is probable that the economic benefits associated with the asset will flow to the company and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. However, intangible assets acquired in a business combination not involving entities under common control with a fair value that can be measured reliably are recognised separately as intangible assets and initially measured at the fair value at the date of acquisition.

 

The useful life of an intangible asset is determined according to the period over which it is expected to generate economic benefits for the company. An intangible asset is regarded as having an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected to generate economic benefits for the company.

 

Intangible assets having a definite useful life are mainly developed games, user base, licenses and others. An intangible asset with a definite useful life is amortised using the straight-line method over its useful life. For an intangible asset with a definite useful life, the company reviews the useful life and amortisation method at least at each year end and makes adjustment if necessary.

 

The company classifies the expenditures on an internal research and development project into expenditure on the research phase and expenditure on the development phase. Expenditure on the research phase is recognised in profit or loss as incurred.

 

Expenditure on the development phase is capitalised only when the company can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) the intention to complete the intangible asset and use or sell it; (iii) how the intangible asset will generate probable future economic benefits (among other things, the company can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset); (iv) the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; and (v) the ability to measure reliably the expenditure attributable to the intangible asset during the development phase. Expenditure on the development phase which does not meet these above criteria is recognised in profit or loss when incurred.

 

The useful lives of the intangible asset is 3 years.

1.5
Non-current investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

Financial assets are classified as at FVTPL when the financial asset is held for trading. This is the case if:

 

 

Financial assets at FVTPL are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset. Interest and dividends are included in 'Investment income' and gains and losses on remeasurement included in 'other gains and losses' in the statement of comprehensive income.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Financial assets held at amortised cost

Financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity are classified as held to maturity investments.

 

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

 

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

Financial assets classified as available for sale are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income. Where an AFS financial asset is disposed of or determined to be impaired, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

 

Dividends and interest earned on AFS financial assets are included in the investment income line item in the statement of comprehensive income.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

The company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the company expect to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

 

General approach

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

 

At each reporting date, the company assesses whether the credit risk on a financial instrument has increased significantly since initial recognition. When making the assessment, the company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information that is available without undue cost or effort, including historical and forward-looking information.

 

For debt investments at fair value through other comprehensive income, the company applies the low credit risk simplification. At each reporting date, the company evaluates whether the debt investments are considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the company reassesses the external credit ratings of the debt investments. In addition, the company considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -

The company considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the company may also consider a financial asset to be in default when internal or external information indicates that the company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

 

Debt investments at fair value through other comprehensive income and financial assets at amortised cost are subject to impairment under the general approach and they are classified within the following stages for measurement of ECLs except for trade receivables and contract assets which apply the simplified approach as detailed below:

 

Stage 1    -    Financial instruments for which credit risk has not increased significantly since initial recognition and for which the loss allowance is measured at an amount equal to 12-month ECLs.

        

Stage 2    -    Financial instruments for which credit risk has increased significantly since initial recognition but that are not credit-impaired financial assets and for which the loss allowance is measured at an amount equal to lifetime ECLs

        

Stage 3    -    Financial assets that are credit-impaired at the reporting date (but that are not purchased or originated credit-impaired) and for which the loss allowance is measured at an amount equal to lifetime ECLs

 

Simplified approach

For account receivables and receivables due from third-party game distribution platform and payment channels and contract assets that do not contain a significant financing component or when the Company applies the practical expedient of not adjusting the effect of a significant financing component, the Company applies the simplified approach in calculating ECLs. Under the simplified approach, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic

 

For accounts receivable that contain a significant financing component, the Company chooses as its accounting policy to adopt the simplified approach in calculating ECLs with policies as described above.

 

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 26 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Adoption of new and revised standards and changes in accounting policies
Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the UK):

 

 

 

The directors do not expect that the adoption of the other standards listed above will have a material impact of the company in future periods.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
3
Critical accounting judgements and key sources of estimation uncertainty

In the opinion of the directors, the determination that it is not necessary to recognise a provision for expected credit losses in relation to the company's receivables from related parties is a critical judgement in terms of the requirements of IAS 1 Presentation of Financial Statements. These receivables are interest-free and repayable on demand. At 31 December 2023 the debtor companies did have sufficient cash and liquid assets available to repay these balances if demanded. The directors have considered cash-flow forecasts and concluded that all reasonable recovery scenarios indicate that the full amount of these loans would be recovered. Accordingly, no impairment loss has been recognised.

 

In the opinion of the directors, there are no sources of estimation uncertainty relating to amounts recognised in the financial statements that warrant their description as key in terms of requirements of IAS 1.

4
Fair value measuremant

The company measures its financial assets measured at fair value through profit or loss or other comprehensive income at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the orderly transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the company at the measurement date. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

 

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

 

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

 

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole:

 

Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly;

Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

 

For assets and liabilities that are measured at fair value in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at each balance sheet date.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
5
Revenue
2023
2022
$
$
Revenue analysed by class of business
Online gaming
186,004,117
200,176,914
6
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
$
$
Exchange (gains)/losses
(36,899)
946,036
Research and development costs
42,137,943
50,791,826
Amortisation of intangible assets (included within administrative expenses)
2,624,572
2,385,298
7
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
$
$
For audit services
Audit of the financial statements of the company
36,000
34,000
8
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
UK Staff
5
10

Their aggregate remuneration comprised:

2023
2022
$
$
Wages and salaries
492,087
2,063,025
Social security costs
71,103
278,985
Pension costs
21,576
51,332
584,766
2,393,342
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
9
Investment income
2023
2022
$
$
Interest income
Financial instruments measured at amortised cost:
Other interest income on financial assets
1,537,145
1,774,840
Other income
Dividends from shares in group undertakings
20,000,000
40,000,000
21,537,145
41,774,840
Income above relates to assets held at amortised cost, unless stated otherwise.
10
Finance costs
2023
2022
$
$
Other interest payable
5,884,783
11,871,999
11
Income tax expense
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
15,666,774
10,879,162
Adjustments in respect of prior periods
22,974
(2,722,428)
Total UK current tax
15,689,748
8,156,734
Foreign taxes and reliefs
272,535
-
0
15,962,283
8,156,734
Deferred tax
Origination and reversal of temporary differences
(250,335)
(275,624)
Total tax charge
15,711,948
7,881,110
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Income tax expense
(Continued)
- 30 -

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
$
$
Profit before taxation
42,674,844
93,546,831
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
10,037,123
17,773,898
Effect of expenses not deductible in determining taxable profit
9,807,293
710,692
Income not taxable
(4,704,110)
(7,600,000)
Effect of change in UK corporation tax rate
(13,581)
15,819
Group relief
-
0
(2,988,500)
Other permanent differences
83,195
(75,728)
Share based payment charge
-
0
44,929
Under/(over) provided in prior years
2,128
-
0
Foreign exchange differences
227,365
-
0
Foreign taxes and reliefs
272,535
-
0
Taxation charge for the year
15,711,948
7,881,110
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
$
$
In respect of:
Investments in subsidiaries
41,600,000
-
Recognised in:
Administrative expenses
41,600,000
-
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
13
Intangible assets
Development costs
$
Cost
At 1 January 2022
7,961,414
Additions
1,317,753
At 31 December 2022
9,279,167
Additions - purchased
1,492,115
At 31 December 2023
10,771,282
Amortisation and impairment
At 1 January 2022
2,522,225
Charge for the year
2,385,298
At 31 December 2022
4,907,523
Charge for the year
2,624,572
At 31 December 2023
7,532,095
Carrying amount
At 31 December 2023
3,239,187
At 31 December 2022
4,371,644
At 31 December 2021
5,439,189

The company has incurred expenditure for a project to develop a game infrastructure, which will be a universal gaming platform that will provide all the necessary infrastructure components for online social and casual games. Capitalized costs are payroll costs and payroll related costs (including benefits) for R&D team members, which are directly involved in software development. The company amortises the project over three years in accordance with its accounting policies.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
14
Investments
Current
Non-current
2023
2022
2023
2022
$
$
$
$
Investments in subsidiaries
-
0
-
0
631,084,001
672,684,001
Loans to subsidiaries
-
-
-
5,266,626
Investments in associates
-
0
-
0
25,000,000
25,000,000
-
0
-
0
656,084,001
702,950,627

The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.

Fair value of financial assets carried at amortised cost

Except as detailed below the directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Movements in non-current investments
Shares in subsidiaries and associates
Loans to subsidiaries
Total
$
$
$
Cost or valuation
At 1 January 2023
697,684,001
5,266,626
702,950,627
Disposals
-
(5,266,626)
(5,266,626)
At 31 December 2023
697,684,001
-
697,684,001
Impairment
At 1 January 2023
-
-
-
Impairment losses
(41,600,000)
-
(41,600,000)
At 31 December 2023
(41,600,000)
-
(41,600,000)
Carrying amount
At 31 December 2023
656,084,001
-
656,084,001
At 31 December 2022
697,684,001
5,266,626
702,950,627
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
15
Subsidiaries

The company holds the entire share capital of the subsidiary Wooga ParentCo.DE GmbH, a company incorporated in Germany. As at the year ended 31 December 2023, the subsidiary reported a profit of €78,395,119 and reported capital & reserves of €3,710,770.

 

The company holds the entire share capital of Playtika ST Holding GmbH, a company incorporated in Austria. As at the year ended 31 December 2023 the subsidiary, reported a profit of €12,085,860 and reported capital & reserves of €118,471,875.

 

Playtika ST Holding GmbH, the subsidiary of the company acquired the entire share capital of Supertreat GmbH, a company incorporated in Austria. As at the year ended 31 December 2023, Supertreat GmbH reported a profit of €40,844,582 and reported capital & reserves of €63,930,434.

 

The company holds the entire share capital of Reworks OY, a company incorporated in Finland. As at the year ended 31 December 2023, Reworks OY reported a loss of €7,913,193 and reported negative capital and reserves of €14,569,626.

 

Playtika London UK Limited was dissolved during the year.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Principal activities
% Held
Direct
Indirect
Playtika ST Holding GmbH
Austria
Holding company
100.00
-
Wooga ParentCo.DE  GmbH
Germany
Holding company
100.00
-
Reworks OY
Finland
Mobile gaming
100.00
-
Playtika Sp.Zoo
Poland
R&D Centre
100.00
-
Playtika London UK Limited
UK
Dormant
100.00
-
Supertreat GmbH
Austria
Mobile gaming
0
100.00
Wooga GmbH
Germany
Mobile gaming
0
100.00
Playtika Georgia
Georgia
R&D Centre
100.00
-
Playtika Switzerland SA
Switzerland
Mobile Gaming
100.00
-
16
Associates

Details of the company's associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Principal activities
Class of
% Held
shares held
Direct
ACE Academy Teknoloji A.S.
Turkey
Mobile gaming
ordinary shares
18.50
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
17
Trade and other receivables
2023
2022
$
$
Trade receivables
11,004,380
9,238,238
VAT recoverable
-
0
26,896
Amount owed by parent undertaking
-
0
86,764
Amounts owed by fellow group undertakings
7,441,791
4,894,976
Other receivables
23,070
39,334
Prepayments
186,780
163,181
18,656,021
14,449,389

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

18
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables differs from fair value as follows:

Carrying value
Fair value
2023
2022
2023
2022
$
$
$
$
Trade receivables net of allowances
11,004,380
9,238,238
11,004,380
9,238,238
Other debtors
23,070
39,334
23,070
39,334
Prepayments
186,780
163,181
186,780
163,181
11,214,230
9,440,753
11,214,230
9,440,753

No significant receivable balances are impaired at the reporting end date.

19
Borrowings
Current
Non-current
2023
2022
2023
2022
$
$
$
$
Borrowings held at amortised cost:
Loans from parent undertaking
58,136,692
54,378,012
-
54,493,896
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Borrowings
(Continued)
- 35 -

The company received a loan from Playtika Ltd on 18 September 2022 amounting to $107m. The final tranche of $58m is repayable within one year and included within short-term liabilities. The loan has a term of two years and interest is charged at 6.52% on this loan.

20
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

21
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Less than 1 month
1 – 3 months
3 months to 1 year
Total
$
$
$
$
At 31 December 2022
Trade payables
731,065
-
-
731,065
Amounts owed to fellow group companies
-
-
19,354,338
19,354,338
Accruals
-
-
5,086,862
5,086,862
Other payables
-
-
5,772,181
5,772,181
731,065
-
30,213,381
30,944,446
At 31 December 2023
Trade payables
3,501,072
-
-
3,501,072
Amounts owed to fellow group companies
-
-
11,245,412
11,245,412
Accruals
-
-
4,177,420
4,177,420
Social security and other taxation
-
415,936
-
415,936
Other payables
-
-
7,019,776
7,019,776
3,501,072
415,936
22,442,608
26,359,616
PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
22
Trade and other payables
2023
2022
$
$
Trade payables
3,501,072
731,065
Amounts owed to fellow group undertakings
11,245,412
19,354,338
Accruals
4,177,420
5,086,862
Social security and other taxation
415,936
-
0
Other payables
7,019,776
5,772,181
26,359,616
30,944,446
23
Deferred taxation
Assets
2023
2022
$
$
Deferred tax balances
524,250
275,624
Deferred tax assets are expected to be recovered after more than one year.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Timing differences
$
Balance at 1 January 2022
-
0
Deferred tax movements in prior year
Credit/(charge) to profit or loss
275,624
Asset at 1 January 2023
275,624
Deferred tax movements in current year
Credit/(charge) to profit or loss
248,626
Asset at 31 December 2023
524,250

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
24
Pending litigation

On 31 December 2020, a freelance writer who had provided game plot writing services for Wooga GmbH filed a lawsuit against Wooga GmbH, asking it to pay additional remuneration and stop reusing the written plot in the games under Wooga GmbH. As of 31 December 2023, the lawsuit has been concluded and the Group paid compensation of $2,500,000.

25
Deferred revenue
2023
2022
$
$
Arising from online gaming
670,427
713,764
All deferred revenues are expected to be settled within 12 months from the reporting date.
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
21,576
18,002

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

27
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary of 1p each
32,464
32,464
526
526
B Ordinary of £1 each
1
1
2
2
32,465
32,465
528
528

The B share has no voting or dividend rights; nor does it count in a quorum at general meetings nor have any interest in any capital distribution.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
28
Share premium account
2023
2022
$
$
At the beginning of the year
202,026,339
202,102,866
Other movements
(110,917)
(76,527)
At the end of the year
201,915,422
202,026,339
29
Contingent liabilities

The company has granted a fixed and floating charge over the company's assets in favour of Credit Suisse AG on behalf of its parent entity, Playtika Holding Corp.

30
Capital risk management

The company is not subject to any externally imposed capital requirements.

31
Events after the reporting date

Playtika acquired Superplay Ltd in Q4 2024, this was done to diversify Playtika's portfolio of games and expand our presence in high-growth gaming categories. With this acquisition, Playtika also acquired a talented development and live services team with two proven hits and two more in the pipeline. This acquisition will have no direct affect on Playtika UK - House of Fun Limited.

 

In September 2024, Playtika management has determined it is appropriate to book a complete $25 million impairment for the investment in ACE Games. Playtika has no means of making any reasonable forecast of future performance that would support any future return on investment. The circumstances of this impairment only came to light in Q3 2024 and thus an impairment for this investment will be included in the 2024 year end accounts.

 

32
Controlling party

The immediate parent company was Playtika Holding Corporation, a company registered in Delaware.

The ultimate parent company was Alpha Frontier Limited, a company registered in Cayman Island.

PLAYTIKA UK - HOUSE OF FUN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
33
Cash generated from/(absorbed by) operations
2023
2022
$
$
Profit for the year after tax
26,962,896
85,665,721
Adjustments for:
Taxation charged
15,711,948
7,881,110
Finance costs
5,884,783
11,871,999
Investment income
(21,537,145)
(41,774,840)
Amortisation and impairment of intangible assets
2,624,572
2,385,298
Other gains and losses
41,600,000
-
Movements in working capital:
(Increase)/decrease in trade and other receivables
(4,206,632)
3,057,694
Decrease in trade and other payables
(4,584,830)
(82,529,723)
Decrease in deferred revenue outstanding
(43,337)
(62,345)
Cash generated from/(absorbed by) operations
62,412,255
(13,505,086)
34
Analysis of changes in net debt
1 January 2023
Cash flows
Market value movements
31 December 2023
$
$
$
$
Cash at bank and in hand
12,425,413
11,522,110
-
23,947,523
Borrowings excluding overdrafts
(108,871,908)
47,970,432
2,764,784
(58,136,692)
(96,446,495)
59,492,542
2,764,784
(34,189,169)
1 January 2022
Cash flows
Market value movements
31 December 2022
Prior year:
$
$
$
$
Cash at bank and in hand
157,115,907
(144,690,494)
-
12,425,413
Borrowings excluding overdrafts
(243,810,812)
134,938,904
-
(108,871,908)
(86,694,905)
(9,751,590)
-
(96,446,495)
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