DoubleUGames (192080) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue reached KRW 162 billion, up 4.0% quarter-over-quarter and 0.9% year-over-year, driven by iGaming growth, DTC expansion, and contributions from SuprNation and Paxie Games.

• Operates 16 consolidated entities, with major subsidiaries in gaming and iGaming; recent expansion includes Paxie Games acquisition (60% stake) and SuprNation AB.

• Core business is social casino and iGaming, with a 6.1% global market share in social casino as of 2024.

• Focus on portfolio diversification through new game development and M&A, targeting growth in both social casino and iGaming segments.

• Net income was KRW 45.8 billion (28% margin), down sequentially and year-over-year due to normalization after Q4 FX gains.

Financial highlights

• Operating income was KRW 54.8 billion (34% margin); EBITDA was KRW 57.8 billion (36% margin), both down year-over-year.

• iGaming revenue surged 73% year-over-year to KRW 19.2 billion, while social casino revenue declined 4.4% year-over-year to KRW 142.8 billion.

• Paxie Games recorded KRW 10.7 billion in payments, a 346% YOY increase, with Merge Studio: Fashion Makeover as a key driver.

• DTC revenue share rose to 10.4% of social casino revenue, up from 8.2% in 2024, aided by Apple's external payment policy shift.

• Cash and cash equivalents at quarter-end were KRW 608.9 billion; total assets KRW 1.74 trillion; equity KRW 1.58 trillion.

Outlook and guidance

• Continued focus on DTC expansion, leveraging Apple's policy change to broaden user base and platform payments.

• Paxie Games' consolidation from Q2 expected to drive top-line growth.

• Over 15 new hybrid casual games planned for 2025, targeting global trends and rapid market entry.

• Plans for continued portfolio expansion via new game launches and further M&A.

• Shareholder return roadmap includes annual share buybacks and cancellations through 2026.