DoubleUGames (192080) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached KRW 633.5 billion, up 8.8% YoY, the highest since 2020, driven by Social Casino and iGaming growth.

• Operating profit hit a record KRW 248.7 billion, up 17% YoY, with stable margins and reduced marketing expenses.

• Net income for 2024 was KRW 237.7 billion, up 23.2% YoY, boosted by foreign exchange gains and increased USD-denominated assets.

• Social casino segment maintained solid revenue with a sticky user base, while iGaming entered full-scale growth.

• Cost efficiency improved through significant reduction in marketing expenses.

Financial highlights

• 2024 consolidated revenue: KRW 633.5 billion (+8.8% YoY); Q4: KRW 155.8 billion (+1.1% QoQ, +1.5% YoY).

• Operating income: KRW 248.7 billion (+16.6% YoY, margin 39.3%); Q4: KRW 60.5 billion (margin 38.8%).

• EBITDA: KRW 261.1 billion (+23.2% YoY, margin 41.2%); Q4: KRW 63.5 billion (margin 40.8%).

• Net income: KRW 237.7 billion (+23.2% YoY, margin 37.5%); Q4: KRW 72.3 billion (+76.5% QoQ, margin 46.4%).

• Dividend for 2024 set at KRW 23.8 billion, up 44% YoY, with a dividend per share of KRW 1,200.

Outlook and guidance

• 2025 revenue growth expected from iGaming and casual genres, with iGaming NGR up 41% MoM in January 2025.

• iGaming annual revenue target set at KRW 50-60 billion, aiming for double-digit growth.

• Paxie Games acquisition expected to close by Q1 2025, with continued monthly revenue growth anticipated.

• DTC platform payments targeted to double from 2024’s 8% share, aiming for 2-3% EBITDA margin improvement.

• iGaming division to continue active marketing in 2025, aiming for further topline growth.