In November last year, SuprNation was acquired by DoubleDown for $36.5 million, marking DoubleDown's entry into the real money gaming sector. The second quarter was SuprNation's second full quarter in this business.
During the three months ending June 30, the group's revenue grew by 17.3% to $88.2 million (£68.9 million/€80.7 million). SuprNation contributed $7.9 million in the second quarter, a sequential decline of 4.8%. Social games alone generated $80.3 million in revenue in the second quarter, up 6.7% from the second quarter of 2023.
This real money brand is licensed in Malta, Sweden, the Isle of Man, and the UK, and operates sites such as VoodooDreams, NYSpinz, and Duelz in Western Europe.
DoubleDown may re-enter the acquisition field
DoubleDown's CFO Joseph Sigrist hinted in the company's Q2 earnings call that the company will pursue further acquisitions in the online gaming and social casino sectors. However, he emphasized that the company will continue to maintain a diversified business.
"We will continue to look for opportunities in these categories, focusing more on some non-casino oriented mobile gaming categories," Sigrist said. "Of course, some categories we have been involved in the past, but from a payer's perspective, these categories are still very large and incredibly influential.
"So, we really haven't ruled anything out. When we announced the acquisition of SuprNation, we said we were excited about igaming, but definitely not turning ourselves into a purely igaming company."
The business's average revenue per daily active user (ARPDAU) increased from $1.04 to $1.33, and the average revenue per player per month increased from $235 to $288. Despite a 23.0% decrease in average MAUs and a 16.3% decrease in average daily players, the company still achieved success.
DoubleDown's CEO Keuk Kim stated that strengthening the company's balance sheet and further driving monetization growth will be key factors in assessing acquisition opportunities.
Cash game costs rise, but profits grow in the second quarter
Operating expenses in the second quarter increased by 9.0% to $52 million, attributed by DoubleDown to SuprNation's operations.
However, revenue growth meant that operating profit grew by 31.6% to $36.2 million. DoubleDown also felt the impact of an additional $6.4 million in foreign exchange transactions and interest income. Additionally, the business's adjusted EBITDA grew by 34.1% to $37 million.
This meant that pre-tax profit grew by 33.5% to $42.6 million. The company paid $9.4 million in taxes, deducted a net profit of $88,000 from non-controlling interests, and recorded a $2.1 million foreign exchange loss.
This meant that the company's net profit for the second quarter was $31.1 million, an increase of 28.5% year-over-year.
DoubleDown's revenue grows 15.5% in the first half of the year
For the first half of the year, the transaction with SuprNation meant similar performance. Revenue grew by 15.5% to $176.4 million.
Operating costs rose by 9.2% to $109.1 million, and operating profit grew by 27.0% to $67.2 million. After deducting $13.7 million in other income, pre-tax profit was $81 million, up 30.0%.
DoubleDown paid $17.4 million in taxes, deducted $141,000 in profits from non-controlling interests, and mentioned a $5.1 million foreign exchange loss. This meant that net profit was $58.5 million, up 25.5%, while adjusted EBITDA grew by 30.0% to $68.9 million.
