DoubleDown Expands into Real-Money Gaming with SuprNation Acquisition

DoubleDown, a prominent name in the world of social casino games, has made headlines with its latest strategic acquisition. The company's decision to enter the realm of real-money gaming has been a hot topic in the gaming industry, drawing attention from enthusiasts and experts alike. This groundbreaking acquisition, announced in January, has opened up exciting possibilities for DoubleDown's future.

The cornerstone of this expansion is the acquisition of SuprNation, a gaming company that has been making waves since its establishment in 2015. With a strong presence in various European markets, including Sweden and the UK, SuprNation's acquisition positions DoubleDown for success in the real-money igaming sector. The purchase includes three well-established real-money igaming brands in Western Europe: VoodooDreams, NYSpinz, and Duelz.

In Keuk Kim, the CEO of DoubleDown, is enthusiastic about the prospects this acquisition brings. He now takes on the role of chairman at SuprNation, a testament to his commitment to the venture. Kim highlighted the strategic significance of the move, saying, "The acquisition of SuprNation is an important step in establishing our presence in new high-growth gaming categories that are complementary to our core social casino operations." This expansion allows DoubleDown to leverage its game development expertise and marketing platform to drive profitable growth.

Kim also emphasized the revenue growth opportunities that lie ahead for the combined entity. He expects synergies in player acquisition and cost management, including marketing and app development, to support their shared goals.

The co-CEOs of SuprNation, Joakim Stockman and Henric Andersson, are equally optimistic about the collaboration. They see it as an opportunity to accelerate the growth of SuprNation's real-money igaming operations. Working in tandem with DoubleDown's team, they aim to unlock the full potential of SuprNation's growth.

The acquisition comes on the heels of DoubleDown's Q2 performance, which reported a decline in revenue. However, this dip was overshadowed by a rise in both net profit and adjusted EBITDA. While revenue decreased by 6.7% to $75.2 million, monthly active users and daily active users also saw a decrease. Nonetheless, the average monthly revenue per player increased slightly to $235.

The reduction in expenses, primarily due to the resolution of last year's cost-related issues, played a crucial role in increasing net profit from $24.2 million to $37.3 million. Additionally, adjusted EBITDA witnessed a growth from $25.0 million to $27.6 million.

In light of these figures, Kim spoke about how the SuprNation acquisition is expected to propel the growth of their igaming operations. This strategic move is aimed at diversifying and strengthening DoubleDown's foothold in the gaming industry, setting the stage for exciting developments in the coming months.