DoubleU Games Reports Q1 Operating Profit of 50.3 Billion KRW, Up 31% Year-on-Year

[Asia Economy Reporter Jang Hyowon] W Games, a KOSPI-listed company (CEO Kim Garam), announced on the 11th that it recorded consolidated operating revenue (sales) of 163.9 billion KRW, operating profit of 50.3 billion KRW, and EBITDA of 60.5 billion KRW for the first quarter of this year.

Both sales and operating profit grew approximately 19.3% and 31.0%, respectively, compared to the same period last year. This strong performance is mainly attributed to the success of new slots and meta content in DoubleDown Casino and W Casino.

W Games’ remarkable growth stood out even within the social casino market. According to data presented by the company, the global social casino market grew by 22% year-over-year, while the company recorded a 27% growth rate based on dollar payment volume, surpassing the market average. W Games has achieved growth rates exceeding the market average for four consecutive quarters.

The core subsidiary, DoubleDown Interactive, also posted strong results with first-quarter operating revenue of 96 million USD and EBITDA of 33 million USD (margin rate of 34.2%), boasting high sales growth and EBITDA margin. The company announced plans to pursue a NASDAQ listing based on this strong performance.

During the earnings conference call, W Games shared information about three new games scheduled for release this year. First, Project H, which is planned for a soft launch in June, is a game that inherits and develops the IP of Undead Nation, W Games’ first mid-core game. It is expected to attract users’ attention with high-quality graphics, differentiated action, and over 30 diverse and unique characters.

Notably, this is W Games’ first title under the ‘Beyond Social Casino’ initiative, drawing significant interest both inside and outside the company. Additionally, development of the casual board game ‘Project N’ and the casual slot game ‘Project G,’ both scheduled for launch in the second half of the year, is progressing smoothly.

A W Games representative stated, “We will continue to make our best efforts to sustain high growth exceeding the market average growth rate in the future,” and added, “As depreciation of identifiable intangible assets acquired during the 2017 acquisition of DoubleDown Interactive is partially completed in the first half of this year, we expect operating profit to increase from the second half of this year.”