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• Consolidated Revenue: KRW162 billion, up 4.0% QoQ and 0.9% YoY.

• Operating Income: KRW54.8 billion with a 34% margin.

• EBITDA: KRW57.8 billion, reflecting a 36% margin.

• Net Income: KRW45.8 billion with a 28% margin.

• Platform Costs: KRW41 billion, 25% of consolidated revenue.

• Marketing Expenses: KRW23.8 billion, 13% increase YoY.

• Personnel Expenses: KRW23.7 billion, stable.

• Royalties: KRW3.6 billion.

• Depreciation and Amortization: KRW3.1 billion.

• SuprNation Net Revenue: KRW19.2 billion, 73% YoY increase.

• Paxie Games Payments: KRW10.7 billion, 346% YoY increase.

• DTC Revenue Share: Increased by 2.2 percentage points YoY to 10.4%.

• Head Count: 589 employees.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:500182.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Consolidated revenue for Q1 2025 reached KRW162 billion, marking a return to quarter-over-quarter growth.

• SuprNation achieved a 73% YoY increase in net revenue, driven by expanded marketing investments and product diversification.

• Paxie Games recorded a 346% YoY increase in payments, showcasing strong momentum in the hybrid casual genre.

• Operating income was KRW54.8 billion with a margin of 34%, reflecting effective cost optimization.

• The DTC revenue share increased by 2.2 percentage points YoY, reaching 10.4%, indicating successful structural shifts.

Negative Points

• Net income declined to KRW45.8 billion due to FX valuation gains recorded in the previous quarter.

• Marketing expenses increased by 13% YoY, primarily due to aggressive marketing expansion in the iGaming segment.

• Platform costs accounted for about 25% of consolidated revenue, indicating room for further optimization.

• Social casino revenue showed a decline, attributed to market conditions and reduced marketing spend.

• The company faces challenges in retaining users in the casual game genre, requiring strategic marketing investments.

Q & A Highlights

Q: How is DoubleUGames managing its human resources following the acquisition of Paxie Games, and what are the plans for 2025? A: Jaeyoung Choi, CFO, explained that by the end of March, the consolidated headcount was 590, and with Paxie Games added in Q2, about 40 personnel will be included, bringing the total to approximately 630. The company is efficiently managing personnel with a revenue per headcount of about KRW1 billion. They plan to utilize AI technology to improve efficiency in design, development, and other areas, reallocating resources to departments with higher growth potential without increasing headcount.