DoubleU Games Reports 19.3% Surge in First Quarter Earnings

The initial three-month earnings of DoubleU Game Company saw a dramatic surge of 19.3% in comparison to the same period in the previous year. This surge followed the company’s renewed efforts to bring their subsidiary, DoubleDown Interactive, to the Nasdaq stock exchange.

The company’s total revenue for the period ending March 31 reached a remarkable 163.9 billion won, equivalent to 103.5 million pounds, 120.3 million euros, or 146.4 million dollars. Mobile games contributed a substantial 121.3 billion won, while PC games contributed 42.6 billion won.

DoubleDown Interactive played a crucial role in this success, contributing a significant 107.7 billion won to the overall revenue, reflecting an 18.7% increase from the first quarter of 2020. Their flagship product, DoubleDown Casino, generated an impressive 104 billion won, while DoubleDown Fort Knox contributed 2.9 billion won, and DoubleDown Classic added 600 million won.

In March, the company announced their decision to revive their plans to list DoubleDown on the New York Stock Exchange. They had initially planned to separate the company last year, which they acquired from International Game Technology in 2017.

However, these plans were temporarily halted due to the global health crisis, as DoubleU believed that investor interest in an initial public offering had been negatively impacted. The company has now submitted a Form 20-F, which will be subject to review by the US Securities and Exchange Commission.

DoubleU will establish the schedule and price of its public offering after obtaining authorization from the securities regulatory body.

Meanwhile, DoubleU Games’ income continues to climb, rising 20.3% year-over-year to 562 billion won.

Of this sum, DoubleU Casino earnings were 529 billion won, Take5 Slots earnings were 31 billion won, and DoubleU Bingo earnings were 2 billion won.

In terms of operational expenditures, total costs for the quarter rose 14.7% to 1136 billion won. Platform fees paid to companies like Apple and Facebook were the most significant expenditure at 489 billion won, accounting for 29.8% of revenue, while marketing costs increased substantially by 38.8% to 304 billion won.

Personnel costs only increased slightly to 163 billion won, while royalties (34 billion won) and other expenses (45 billion won) both decreased. This resulted in an EBITDA of 605 billion won, an increase of 21.5% year-over-year.

After subtracting 101 billion won in depreciation and amortization expenses, DoubleU’s operating profit increased 31.0% to 503 billion won.

After subtracting 35 billion won in non-operating income (including interest and foreign exchange gains) and adding 6 billion won in non-operating expenses, profit before tax reached 532 billion won, an increase of 29.4% from the previous year.

This profit, less 135 billion won in taxes, resulted in a net profit of 397 billion won for the first quarter, an increase of 23.3% from the first quarter of 2020.

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