Playtika Holding Corp has posted $659.6m in second quarter revenue, a less than 1% year-on-year increase offset by rising costs.

The company incurred $568.3m in expenses during Q2, up 15% and leading to a sizeable drop in profitability. Playtika’s net income amounted to $36.4m, down from last year’s $90m.

Adjusted EBITDA was likewise down, falling from $264.4m to $238.9m, while adjusted EBITDA margin contracted by four percentage points.

“We continued to optimise our business during the second quarter as we focus on execution,” said Craig Abrahams, Playtika’s President and CFO.

“We took actions to improve our core operations and enhance product roadmaps, while adapting to maintain margin and strong free cash flow generation.”

However, Playtika has recorded some improvements. Average daily payer conversion increased to 3.2% from 2.9% and average daily paying users rose by 3.5%.

The company’s casual portfolio grew revenue by 10% year-on-year, while its direct-to-consumer channel grew by 14.2%.

Robert Antokol, Playtika’s CEO, focused on these latter two areas, commenting: “We are proud of our performance in the second quarter in a challenging economic environment.

“We maintained growth in key strategic areas including our casual game portfolio and direct-to-consumer platforms, and demonstrated the resiliency of our business.”

Regarding Playtika’s future plans, Antokol added: “Looking ahead to the second half, we are focused on the continued introduction of exciting new content for our existing portfolio of games and on our new game development initiatives as well.”

Meanwhile, Abrahams said: “We will continue to look for efficiency opportunities across our organisation and capitalise on investments that position us for long-term sustainable growth.”