DoubleDown Interactive has announced that it plans to capitalize on its recent acquisition of SuprNation and expand its success in the second quarter of the year. Although revenue decreased by 7.4% to $73.0m during the three months ending on September 30th, the company managed to achieve a net profit due to reduced costs.
The decrease in headline revenue is not entirely indicative of the company’s performance, as other figures reveal growth within DoubleDown’s business. Both the average revenue per daily active user and average monthly revenue per payer increased compared to the previous year.
The acquisition of SuprNation, which was completed after the end of the second quarter, is expected to enable DoubleDown to expand into high-growth gaming categories in the European igaming market. Kim, the CEO, expressed confidence in the company’s ability to leverage its game development expertise and marketing platform to profitably scale SuprNation and create more value for shareholders. DoubleDown is also evaluating opportunities to invest in high-growth gaming categories with attractive markets to generate new value for its shareholders.
The decline in revenue in the third quarter was attributed to changes in player behavior due to inflation and global economic concerns, as well as reduced marketing activities. However, the company reported growth in player statistics, including an increase in average revenue per daily active user and average monthly revenue per payer. On the flip side, the number of monthly active users and daily active users decreased.
Operating costs were significantly lower at $43.3m during the third quarter, resulting in a pre-tax profit and a net profit for the company. The developer also reported an increase in adjusted EBITDA year-on-year. Looking at the nine-month period to September 30th, the group revenue at DoubleDown decreased, but operating expenses also decreased, resulting in a significant improvement in pre-tax profit and net profit compared to the previous year.
Kim expressed satisfaction with the company’s solid third-quarter results and emphasized strong payer engagement, particularly for their flagship social casino game DoubleDown Casino. He also highlighted the company’s solid adjusted EBITDA margins and its prudent management of operating expenses, which have led to strong financial performance compared to the same period in 2022.