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DoubleU Games revenue up 33.1% in Q3

| By Robin Harrison
South Korea’s DoubleU Games has reported a 33.1% year-on-year rise in revenue for the third quarter of 2020, though this represented a slight dip from a stellar second quarter performance.

Revenue for the three months to 30 September rose to KRW130.1bn (£88.4m/€97.6m/$114.5m), with the vast majority of the total coming from DoubleDown Casino. Its contribution grew 34.1% to KRW104.5m. 

This left it comfortably ahead of DoubleU Casino, on KRW60.1bn, up 33.9%, while other titles contributed a further KRW8.6bn, a 17.8% rise from Q3 2019. 

However, the third quarter total represented an 8.3% quarter-on-quarter decline, with Q2 a particularly strong period for the business, at a time when much of DoubleU’s audience was in lockdown.
During the quarter, according to Eilers & Krejcik, DoubleU’s products helped it grow to the third largest social casino operator in the market, behind only Playtika and Aristocrat’s offerings. 

This growth came alongside increased outgoings for the business, with total expenses up KRW123.8bn, with technology, personnel and marketing expenses all rising year-on-year. 

Thanks to the revenue growth, earnings before interest, tax, deprecation and amortisation (EBITDA) was up 22.6% to KRW60.7bn, which after amortisation and depreciation, left an operating profit of KRW49.4bn. 

After financial items and foreign exchange adjustments, pre-tax profit came to KRW48.8bn, and after income tax net profit for the quarter stood at KRW38.4bn, up 25.5% year-on-year. 

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