DoubleUGames (192080) Q3 2024 earnings summary

Executive summary

• Q3 2024 focused on expanding shareholder returns and enhancing value through stable profitability, supported by efficient cost management and streamlined marketing.

• Achieved 10.4% year-over-year revenue growth, driven by social casino and iGaming segments, despite a seasonal slowdown compared to Q2.

• Operates globally in social casino and i-Gaming, with 15 consolidated subsidiaries, including recent acquisitions and new entities in Japan and Korea.

• Maintains a strong market position, ranking 5th globally in social casino market share (5.9% in 2023).

• Focuses on portfolio expansion through new game development and M&A, targeting both social casino and i-Gaming growth.

Financial highlights

• Q3 2024 consolidated operating revenue: KRW 154.1 billion, up 10.4% YOY, down 5.5% sequentially; operating income: KRW 59.5 billion (38.6% margin), up 10% YOY.

• EBITDA: KRW 62.5 billion (40.6% margin), up 11.6% YOY; net income: KRW 40.9 billion (26.5% margin), down 20.3% YOY due to FX losses.

• Cash and cash equivalents: KRW 419.8 billion as of September 2024; equity attributable to owners: KRW 992.7 billion; total liabilities: KRW 91.8 billion.

• 2024 Q3 YTD consolidated revenue: ₩477.7B, down from ₩582.3B in 2023 Q3; operating income: ₩188.2B, down from ₩213.3B.

• Basic EPS: ₩6,357 (2024 Q3 YTD), down from ₩9,016 (2023 Q3 YTD); cash and equivalents: ₩763.2B at Q3 2024.

Outlook and guidance

• Q4 expected to benefit from holiday seasonality, with strong revenue growth targeted in social casino and iGaming, and new slot content.

• Expanded marketing investments in iGaming since November, aiming for rapid sales conversion and leveraging existing slot IP.

• Plans to further increase DTC (direct-to-consumer) revenue to improve profitability and optimize platform costs.

• Continues to diversify game portfolio with new casual and skill-based games in 2024.

• Maintains long-term shareholder return policy, including annual share buybacks and dividends through 2026.