DoubleDown Interactive Co., Ltd 6-K/A, filed May 23, 2025
DoubleDown Interactive Co., Ltd. (DDI)
6-K/A
2025-05-23
For: 2025-03-31
View Original
Added on
August 22, 2026
About this 6-K/A
DoubleDown Interactive Co., Ltd filed this 6-K/A on May 23, 2025.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 6-K/A
(Amendment No. 1)
_______________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2025
Commission File Number 001-39349
__________________________
(Translation of registrant’s name into English)
__________________________
Joseph A. Sigrist, Chief Financial Officer
c/o DoubleDown Interactive, LLC
605 5th Avenue, Suite 200
Seattle, WA 98104
+1-206-408-4545
(Address of principal executive offices)
__________________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
x Form 20-F o Form40-F
EXPLANATORY NOTE
This Amendment No. 1 on Form 6-K/A (this “Amendment”) amends the report on Form 6-K previously filed by DoubleDown Interactive Co., Ltd. (the “Company”) on May 13, 2025 (the “Original 6-K”) to correct the hyperlink on Exhibit 99.2 to the Original 6-K, which should contain the Company’s interim financial statements for the three months ended March 31, 2025. Except as described above, this Amendment does not amend, update or restate any information set forth in the Original 6-K or reflect any events that occurred subsequent to the original date of the Original 6-K.
Issuance of Press Release
On May 13, 2025, DoubleDown Interactive Co., Ltd. (the “Company”) issued a press release announcing its unaudited financial results for the first quarter ended March 31, 2025, together with its unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025.
This report on Form 6-K is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (File No. 333-267422), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.
EXHIBIT INDEX
| Exhibit No. | Description | |||||||
| 99.1 | Press release of the Company, dated May 13, 2025 | |||||||
| 99.2 | ||||||||
| 101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| DOUBLEDOWN INTERACTIVE CO., LTD. | |||||||||||
| Date: May 23, 2025 | |||||||||||
| By: | /s/ Joseph A. Sigrist | ||||||||||
Name: Joseph A. Sigrist | |||||||||||
Title: Chief Financial Officer | |||||||||||
Exhibit 99.1
DoubleDown Interactive Reports First Quarter 2025 Financial Results
SEOUL, KOREA – May 13, 2025 — DoubleDown Interactive Co., Ltd. (NASDAQ: DDI) (“DoubleDown” or the “Company”), a leading developer and publisher of digital games on mobile and web-based platforms, today announced unaudited financial results for the first quarter ended March 31, 2025. Beginning with the fourth quarter of 2024, the Company is reporting its financial results in accordance with International Financial Reporting Standards (“IFRS”). As such, the financial results for the first quarter 2025, as well as the comparable period for 2024, reflect IFRS. The Company previously reported its financial results in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).
First Quarter 2025 vs. First Quarter 2024 Summary:
•Revenue was $83.5 million in the first quarter of 2025 compared to $88.1 million in the first quarter of 2024. Revenue from the Company’s social casino/free-to-play games was $70.3 million in the first quarter of 2025, a 12% decline from the first quarter of 2024. Revenue from SuprNation, the Company’s iGaming subsidiary, increased 59% year over year to $13.2 million, primarily as a result of our increased efforts in new player acquisition.
•Operating expenses were $53.9 million in the first quarter of 2025 compared to $57.0 million in the first quarter of 2024, primarily due to lower cost of revenue reflecting lower revenue and lower research and development expenses, partially offset by higher general and administrative expenses.
•Profit for the interim period (excluding non-controlling interest) was $23.8 million, or earnings per fully diluted common share of $9.62 ($0.48 per American Depositary Share (“ADS”)), in the first quarter of 2025, compared to profit for the interim period (excluding non-controlling interest) of $30.3 million, or earnings per fully diluted common share of $12.24 ($0.61 per ADS), in the first quarter of 2024. The decrease was primarily due to lower revenue, lower net unrealized gain on foreign currency and higher general and administrative expenses, partially offset by lower sales and marketing and research and development expenses. Each ADS represents 0.05 share of a common share.
•Adjusted EBITDA was $30.8 million for the first quarter of 2025 compared to $32.7 million in the first quarter of 2024. Adjusted EBITDA margin was 36.9% in the first quarter of 2025 and 37.1% in the first quarter of 2024.
•Average Revenue Per Daily Active User (“ARPDAU”) for the Company’s social casino/free-to-play games increased to $1.29 in the first quarter of 2025 from $1.26 in the first quarter of 2024 and slightly decreased from $1.30 in the fourth quarter of 2024.
•Average monthly revenue per payer for the social casino/free-to-play games decreased to $276 in the first quarter of 2025 from $281 in the first quarter of 2024 and from $282 in the fourth quarter of 2024.
•Net cash flows from operating activities for the first quarter of 2025 were $41.1 million compared to $35.7 million in the first quarter of 2024. The increase is primarily due to lower net unrealized gain on foreign currency translation, lower accounts receivable and increased accounts payable due to timing of payments, partially offset by lower operating profit.
“The first quarter marked another period of successful execution on our strategic operating priorities focused on driving a high conversion of revenue to profit and cash flow, as we generated $41.1 million in cash flow from operations in the
period,” said In Keuk Kim, Chief Executive Officer of DoubleDown. “While social casino revenues declined year over year as expected given the strong performance in the prior-year period, we continue to achieve strong monetization metrics for our flagship casino game, DoubleDown Casino.
“Our SuprNation iGaming business continues to build on its 2024 momentum with first quarter revenues rising 59% year over year to $13.2 million, as we strategically increase our investments in new player acquisition in the core Sweden and U.K. markets. We continue to target strong top line growth for SuprNation this year while maintaining our capital efficiency discipline.
“We ended the first quarter with an aggregate net cash position of approximately $421 million, or approximately $8.51 per ADS. As our consistent free cash flow generation further strengthens our balance sheet, we have significant flexibility to pursue growth opportunities through our in-house development efforts and through potential M&A opportunities that create value for shareholders.”
Summary Operating Results for DoubleDown Interactive (Unaudited)
| Three months ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Revenue ($ MM) | $ | 83.5 | $ | 88.1 | |||||||
| Total operating expenses ($ MM) | (53.9) | (57.0) | |||||||||
Profit for the interim period (excluding non-controlling interest) ($ MM) | $ | 23.8 | $ | 30.3 | |||||||
| Adjusted EBITDA ($ MM) | $ | 30.8 | $ | 32.7 | |||||||
| Profit margin | 28.6 | % | 34.5 | % | |||||||
| Adjusted EBITDA margin | 36.9 | % | 37.1 | % | |||||||
Non-financial performance metrics(1) | |||||||||||
| Average MAUs (000s) | 1,238 | 1,478 | |||||||||
| Average DAUs (000s) | 608 | 699 | |||||||||
| ARPDAU | $ | 1.29 | $ | 1.26 | |||||||
| Average monthly revenue per payer | $ | 276 | $ | 281 | |||||||
| Payer conversion | 6.9 | % | 6.4 | % | |||||||
(1)Social casino/free-to-play games only.
Conference Call
DoubleDown will hold a conference call today (May 13, 2025) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. A question-and-answer session will follow management’s presentation.
To access the call, please use the following link: DoubleDown First Quarter 2025 Earnings Call. After registering, an email will be sent, including dial-in details and a unique conference call access code required to join the live call. To ensure you are connected prior to the beginning of the call, please register a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the conference call will be available with the following link: DoubleDown First Quarter 2025 Earnings Webcast, or via the Investor Relations page of the DoubleDown website at ir.doubledowninteractive.com. For those not planning to ask a question on the conference call, the Company recommends listening via the webcast. A replay will be available on the Company’s Investor Relations website shortly after the event.
About DoubleDown Interactive
DoubleDown Interactive Co., Ltd. is a leading developer and publisher of digital games on mobile and web-based platforms. We are the creators of multi-format interactive entertainment experiences for casual players, bringing authentic Vegas entertainment to players around the world through an online social casino experience. The Company’s flagship social casino title, DoubleDown Casino, has been a fan-favorite game on leading social and mobile platforms for years,
entertaining millions of players worldwide with a lineup of classic and modern games. The Company’s subsidiary, SuprNation, also operates three real-money iGaming sites in Western Europe.
Safe Harbor Statement
Certain statements contained in this press release are “forward-looking statements” about future events and expectations for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our beliefs, assumptions, and expectations of industry trends, our future financial and operating performance, and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Therefore, you should not place undue reliance on such statements. Words such as “anticipates,” believes,” “continues,” “estimates,” “expects,” “goal,” “objectives,” “intends,” “may,” “opportunity,” “plans,” potential,” “near-term,” long-term,” “projections,” “assumptions,” “projects,” “guidance,” “forecasts,” “outlook,” “target,” “trends,” “should,” “could,” “would,” “will,” and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Use and Reconciliation of Non-IFRS Financial Measures
In addition to our results determined in accordance with IFRS, we believe the following non-IFRS financial measure is useful in evaluating our operating performance. We present “adjusted earnings before interest, taxes, depreciation and amortization” (“Adjusted EBITDA”) because we believe it assists investors and analysts by facilitating comparison of period-to-period operational performance on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. The items excluded from the Adjusted EBITDA may have a material impact on our financial results. Certain of those items are non-recurring, while others are non-cash in nature. Accordingly, the Adjusted EBITDA is presented as supplemental disclosure and should not be considered in isolation of, as a substitute for, or superior to, the financial information prepared in accordance with IFRS, and should be read in conjunction with the condensed consolidated interim financial statements furnished in our report on Form 6-K filed with the SEC.
In our reconciliation from our reported IFRS “profit before income tax” to our Adjusted EBITDA, we eliminate the impact of the following four line items: (i) depreciation and amortization; (ii) finance income; (iii) finance cost; and (iv) other (income) expense. The below table sets forth the full reconciliation of our non-IFRS measures:
| Reconciliation of non-IFRS measures | Three months ended March 31, | |||||||
| (in millions, except percentages) | 2025 | 2024 | ||||||
Profit for the interim period | $ | 23.9 | $ | 30.4 | ||||
Income tax expense | 8.9 | 8.0 | ||||||
| Profit before income tax | 32.8 | 38.4 | ||||||
| Adjustments for: | ||||||||
| Depreciation and amortization | 1.1 | 1.6 | ||||||
| Finance income | (4.6) | (8.0) | ||||||
| Finance cost | 1.5 | 0.7 | ||||||
| Other (income) expense, net | — | — | ||||||
| Adjusted EBITDA | $ | 30.8 | $ | 32.7 | ||||
| Adjusted EBITDA margin | 36.9 | % | 37.1 | % | ||||
The key differences between reconciliations of Adjusted EBITDA and Adjusted EBITDA margin under IFRS and under GAAP arise from the treatment of certain adjustments, particularly in the areas of depreciation and amortization, finance income, and finance cost per the respective accounting standards. For reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under IFRS, depreciation related to right-of-use assets is included within the depreciation and
amortization, and as such, is added back to Adjusted EBITDA in the reconciliation. In contrast, for reconciliation of Adjusted EBITDA and Adjusted EBITDA margin under GAAP, depreciation related to right-of-use assets is classified under general and administrative expenses, and thus, is excluded from Adjusted EBITDA in the reconciliation. The designation of finance income and finance cost in reconciliation under IFRS reflects a change in the classification of non-operating (income) expense in reconciliation under GAAP. Specifically, the non-operating (income) expense accounts under GAAP have been renamed to finance income and finance cost under IFRS.
We encourage investors and others to review our financial information in its entirety and not to rely on any single financial measure.
Company Contact:
Joe Sigrist
ir@doubledown.com
+1 (206) 773-2266
Chief Financial Officer
https://www.doubledowninteractive.com
Investor Relations Contact:
Joseph Jaffoni or Richard Land
JCIR
+1 (212) 835-8500
DDI@jcir.com
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Financial Position
(In thousands of U.S. dollars)
| March 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 365,664 | $ | 334,850 | |||||||
| Short-term investments | 90,072 | 80,000 | |||||||||
| Accounts receivable, net | 29,529 | 30,778 | |||||||||
| Prepaid expenses and other assets | 4,305 | 7,614 | |||||||||
| Total current assets | $ | 489,570 | $ | 453,242 | |||||||
| Property and equipment, net | 981 | 1,025 | |||||||||
| Right-of-use assets, net | 4,046 | 4,308 | |||||||||
| Intangible assets, net | 47,390 | 47,666 | |||||||||
| Goodwill | 396,400 | 395,804 | |||||||||
| Deferred tax asset | 2,817 | 3,373 | |||||||||
| Other non-current assets | 739 | 746 | |||||||||
| Total non-current assets | $ | 452,373 | $ | 452,922 | |||||||
| Total assets | $ | 941,943 | $ | 906,164 | |||||||
| Liabilities and equity | |||||||||||
| Accounts payable and accrued expenses | $ | 17,129 | $ | 14,990 | |||||||
| Current lease liabilities | 1,112 | 1,162 | |||||||||
| Income taxes payable | 6,015 | 1,512 | |||||||||
| Contract liabilities | 1,413 | 1,754 | |||||||||
| Other current liabilities | 4,857 | 3,966 | |||||||||
| Total current liabilities | $ | 30,526 | $ | 23,384 | |||||||
| Long-term borrowings with related party | 34,095 | 34,014 | |||||||||
| Non-current lease liabilities | 3,374 | 3,510 | |||||||||
| Deferred tax liabilities | 2,458 | — | |||||||||
| Other non-current liabilities | 4,010 | 3,223 | |||||||||
| Total non-current liabilities | $ | 43,937 | $ | 40,747 | |||||||
| Total liabilities | $ | 74,463 | $ | 64,131 | |||||||
| Equity | |||||||||||
| Share capital | 21,198 | 21,198 | |||||||||
| Share premium | 359,280 | 359,280 | |||||||||
| Accumulated comprehensive loss | (9,153) | (10,688) | |||||||||
| Retained earnings | 495,971 | 472,125 | |||||||||
| Equity attributable to DoubleDown Interactive Co., Ltd. | $ | 867,296 | $ | 841,915 | |||||||
| Equity attributable to non-controlling interests | 184 | 118 | |||||||||
| Total equity | $ | 867,480 | $ | 842,033 | |||||||
| Total liabilities and equity | $ | 941,943 | $ | 906,164 | |||||||
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Comprehensive Income
(Unaudited, in thousands of U.S. dollars, except per share amounts)
| Three months ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Revenue | $ | 83,492 | $ | 88,143 | |||||||
| Operating expenses: | |||||||||||
| Cost of revenue | (24,125) | (27,419) | |||||||||
| Sales and marketing | (14,138) | (15,060) | |||||||||
| Research and development | (2,492) | (4,172) | |||||||||
| General and administrative | (13,097) | (10,312) | |||||||||
| Other income | 40 | 26 | |||||||||
| Other expense | (49) | (50) | |||||||||
| Total operating expenses | $ | (53,861) | $ | (56,987) | |||||||
| Operating profit | $ | 29,631 | $ | 31,156 | |||||||
| Finance income | 4,612 | 7,964 | |||||||||
| Finance cost | (1,465) | (747) | |||||||||
| Profit before income tax | $ | 32,778 | $ | 38,373 | |||||||
| Income tax expense | (8,866) | (7,997) | |||||||||
| Profit for the interim period | $ | 23,912 | $ | 30,376 | |||||||
| Other comprehensive income (loss): | |||||||||||
| Pension adjustments, net of tax | 65 | 136 | |||||||||
| Gain (loss) on foreign currency translation | 1,470 | (3,078) | |||||||||
| Total comprehensive income for the interim period | $ | 25,447 | $ | 27,434 | |||||||
| Profit attributable to: | |||||||||||
| DoubleDown Interactive Co., Ltd. | 23,846 | 30,324 | |||||||||
| Non-controlling interests | 66 | 52 | |||||||||
| Total comprehensive income attributable to: | |||||||||||
| DoubleDown Interactive Co., Ltd. | 25,381 | 27,444 | |||||||||
| Non-controlling interests | 66 | (10) | |||||||||
| Earnings per share: | |||||||||||
| Basic | $9.62 | $12.24 | |||||||||
| Diluted | $9.62 | $12.24 | |||||||||
| Weighted average shares outstanding: | |||||||||||
| Basic | 2,477,672 | 2,477,672 | |||||||||
| Diluted | 2,477,672 | 2,477,672 | |||||||||
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Cash Flows
(Unaudited, in thousands of U.S. dollars)
| Three months ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows from (used in) operating activities | |||||||||||
| Profit for the interim period | $ | 23,912 | $ | 30,376 | |||||||
| Adjustments to reconcile profit to net cash from operating activities: | |||||||||||
| Depreciation and amortization | 1,112 | 1,560 | |||||||||
| Unrealized gain on foreign currency | (207) | (3,778) | |||||||||
| Unrealized loss on foreign currency | 336 | 189 | |||||||||
| Gain on valuation of financial assets | (290) | - | |||||||||
| Loss on valuation of financial assets | 11 | 7 | |||||||||
| Interest income | (3,806) | (3,431) | |||||||||
| Interest expense | 449 | 589 | |||||||||
| Provision for severance benefits | 108 | (299) | |||||||||
| Other long-term employee benefits | 289 | 668 | |||||||||
| Income tax expense | 8,866 | 7,997 | |||||||||
| Working capital adjustments: | |||||||||||
| Accounts receivable, net | 1,383 | (1,808) | |||||||||
| Prepaid expenses, and other assets | 518 | 578 | |||||||||
| Other non-current assets | 53 | 236 | |||||||||
| Accounts payable and accrued expenses | 3,369 | 1,291 | |||||||||
| Contract liabilities | (341) | (112) | |||||||||
| Other current and non-current liabilities | (19) | (644) | |||||||||
| Cash generated from operations | $ | 35,743 | $ | 33,419 | |||||||
| Interest received | 6,180 | 2,486 | |||||||||
| Interest paid | (61) | (104) | |||||||||
| Income taxes paid | (742) | (93) | |||||||||
| Net cash inflow from operating activities | $ | 41,120 | $ | 35,708 | |||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property and equipment | (120) | (14) | |||||||||
| Purchase of short-term investments | (141,081) | (31,934) | |||||||||
| Sales of short-term investment | 131,221 | - | |||||||||
| Net cash (outflow) from investing activities | $ | (9,980) | $ | (31,948) | |||||||
| Cash flows from financing activities | |||||||||||
| Repayment of lease liabilities | (207) | (793) | |||||||||
| Net cash (outflow) from financing activities | $ | (207) | $ | (793) | |||||||
| Net increase in cash and cash equivalents | $ | 30,933 | $ | 2,967 | |||||||
| Effect of exchange rate changes on cash and cash equivalents | $ | (119) | $ | (15) | |||||||
| Cash and cash equivalents at beginning of the interim period | $ | 334,850 | $ | 206,911 | |||||||
| Cash and cash equivalents at end of the interim period | $ | 365,664 | $ | 209,863 | |||||||
Exhibit 99.2
DoubleDown Interactive Co., Ltd.
Condensed Consolidated Interim Financial Statements (Unaudited)
As of and for the three months ended March 31, 2025 and 2024
Contents
F-1
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Financial Position
(in thousands of U.S. dollars)
| March 31, | December 31, | ||||||||||||||||
| Notes | 2025 | 2024 | |||||||||||||||
| (unaudited) | |||||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents | 3 | $ | $ | ||||||||||||||
| Short-term investments | 3 | ||||||||||||||||
| Accounts receivable, net | 3 | ||||||||||||||||
| Prepaid expenses and other assets | |||||||||||||||||
| Total current assets | $ | $ | |||||||||||||||
| Property and equipment, net | |||||||||||||||||
| Right-of-use assets, net | 5,14 | ||||||||||||||||
| Intangible assets, net | 4 | ||||||||||||||||
| Goodwill | 4 | ||||||||||||||||
| Deferred tax asset | |||||||||||||||||
| Other non-current assets | 3 | ||||||||||||||||
| Total non-current assets | $ | $ | |||||||||||||||
| Total assets | $ | $ | |||||||||||||||
| Liabilities and equity | |||||||||||||||||
| Accounts payable and accrued expenses | 3,14 | $ | $ | ||||||||||||||
| Current lease liabilities | 3,5,14 | ||||||||||||||||
| Income taxes payable | |||||||||||||||||
| Contract liabilities | |||||||||||||||||
| Other current liabilities | |||||||||||||||||
| Total current liabilities | $ | $ | |||||||||||||||
| Long-term borrowings with related party | 3,6 | ||||||||||||||||
| Non-current lease liabilities | 3,5 | ||||||||||||||||
| Deferred tax liabilities | |||||||||||||||||
| Other non-current liabilities | |||||||||||||||||
| Total non-current liabilities | $ | $ | |||||||||||||||
| Total liabilities | $ | $ | |||||||||||||||
| Equity | |||||||||||||||||
| Share capital | 9 | ||||||||||||||||
| Share premium | 9 | ||||||||||||||||
| Accumulated comprehensive loss | ( | ( | |||||||||||||||
| Retained earnings | |||||||||||||||||
| Equity attributable to DoubleDown Interactive Co., Ltd. | $ | $ | |||||||||||||||
| Equity attributable to non-controlling interests | |||||||||||||||||
| Total equity | $ | $ | |||||||||||||||
| Total liabilities and equity | $ | $ | |||||||||||||||
See accompanying notes to the condensed consolidated interim financial statements.
F-2
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Comprehensive Income
(Unaudited, in thousands of U.S. dollars, except per share amounts)
| Three months ended March 31, | |||||||||||||||||
| Notes | 2025 | 2024 | |||||||||||||||
| Revenue | 10,15 | $ | $ | ||||||||||||||
| Operating expenses: | |||||||||||||||||
| Cost of revenue | 11,14 | ( | ( | ||||||||||||||
| Sales and marketing | 11 | ( | ( | ||||||||||||||
| Research and development | 11 | ( | ( | ||||||||||||||
| General and administrative | 11 | ( | ( | ||||||||||||||
| Other income | |||||||||||||||||
| Other expense | ( | ( | |||||||||||||||
| Total operating expenses | ( | ( | |||||||||||||||
| Operating profit | $ | $ | |||||||||||||||
| Finance income | |||||||||||||||||
| Finance cost | ( | ( | |||||||||||||||
| Profit before income tax | $ | $ | |||||||||||||||
| Income tax expense | ( | ( | |||||||||||||||
| Profit for the interim period | $ | $ | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Pension adjustments, net of tax | |||||||||||||||||
| Gain (loss) on foreign currency translation | ( | ||||||||||||||||
| Total comprehensive income for the interim period | $ | $ | |||||||||||||||
| Profit attributable to: | |||||||||||||||||
| DoubleDown Interactive Co., Ltd. | |||||||||||||||||
| Non-controlling interests | |||||||||||||||||
| Total comprehensive income attributable to: | |||||||||||||||||
| DoubleDown Interactive Co., Ltd. | |||||||||||||||||
| Non-controlling interests | ( | ||||||||||||||||
| Earnings per share: | 12 | ||||||||||||||||
| Basic | $ | $ | |||||||||||||||
| Diluted | $ | $ | |||||||||||||||
See accompanying notes to the condensed consolidated interim financial statements.
F-3
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Changes in Equity
(in thousands of U.S. dollars)
| Attributable to DoubleDown Interactive Co., Ltd | |||||||||||||||||||||||||||||||||||||||||||||||
| Notes | Share capital | Share premium | Accumulated other comprehensive income (loss) | Retained earnings | Sub-total | Non - controlling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||
| As of January 1, 2024 | 9 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the interim period | |||||||||||||||||||||||||||||||||||||||||||||||
| Profit for the interim period | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Sub-total of comprehensive income (loss) for the interim period | $ | — | $ | — | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
| As of March 31, 2024 (unaudited) | 9 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| As of January 1, 2025 | 9 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Comprehensive income (loss) for the interim period | |||||||||||||||||||||||||||||||||||||||||||||||
| Profit for the interim period | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | - | |||||||||||||||||||||||||||||||||||||||||||
| Sub-total of comprehensive income (loss) for the interim period | $ | — | $ | — | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| As of March 31, 2025 (unaudited) | 9 | $ | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
See accompanying notes to the condensed consolidated interim financial statements.
F-4
DoubleDown Interactive Co., Ltd.
Consolidated Interim Statement of Cash Flows
(Unaudited, in thousands of U.S. dollars)
| Three months ended March 31, | |||||||||||||||||
| Notes | 2025 | 2024 | |||||||||||||||
| Cash flows from (used in) operating activities | |||||||||||||||||
| Profit for the interim period | $ | $ | |||||||||||||||
| Adjustments to reconcile profit to net cash from operating activities: | |||||||||||||||||
| Depreciation and amortization | 4,5,11,15 | ||||||||||||||||
| Unrealized gain on foreign currency | 3 | ( | ( | ||||||||||||||
| Unrealized loss on foreign currency | 3 | ||||||||||||||||
| Gain on valuation of financial assets | 3 | ( | |||||||||||||||
| Loss on valuation of financial assets | 3 | ||||||||||||||||
| Interest income | 3 | ( | ( | ||||||||||||||
| Interest expense | 3 | ||||||||||||||||
| Provision for severance benefits | 7 | ( | |||||||||||||||
| Other long-term employee benefits | |||||||||||||||||
| Income tax expense | |||||||||||||||||
| Working capital adjustments: | |||||||||||||||||
| Accounts receivable, net | ( | ||||||||||||||||
| Prepaid expenses, and other assets | |||||||||||||||||
| Other non-current assets | |||||||||||||||||
| Accounts payable and accrued expenses | |||||||||||||||||
| Contract liabilities | ( | ( | |||||||||||||||
| Other current and non-current liabilities | ( | ( | |||||||||||||||
| Cash generated from operations | $ | $ | |||||||||||||||
| Interest received | |||||||||||||||||
| Interest paid | ( | ( | |||||||||||||||
| Income taxes paid | ( | ( | |||||||||||||||
| Net cash inflow from operating activities | $ | $ | |||||||||||||||
| Cash flows from investing activities | |||||||||||||||||
| Purchase of property and equipment | ( | ( | |||||||||||||||
| Purchase of short-term investments | ( | ( | |||||||||||||||
| Sales of short-term investment | |||||||||||||||||
| Net cash (outflow) from investing activities | $ | ( | $ | ( | |||||||||||||
| Cash flows from financing activities | |||||||||||||||||
| Repayment of lease liabilities | ( | ( | |||||||||||||||
| Net cash (outflow) from financing activities | $ | ( | $ | ( | |||||||||||||
| Net increase in cash and cash equivalents | $ | $ | |||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | $ | ( | $ | ( | |||||||||||||
| Cash and cash equivalents at beginning of the interim period | $ | $ | |||||||||||||||
| Cash and cash equivalents at end of the interim period | $ | $ | |||||||||||||||
See accompanying notes to the condensed consolidated interim financial statements.
F-5
DoubleDown Interactive Co., Ltd.
Notes to the Condensed Consolidated Interim Financial Statements (unaudited)
1. General information
Background and nature of operations
DoubleDown Interactive Co., Ltd. (“DDI,” “we,” “us,” “Parent Company,” “our” or “the Company,” formerly known as The8Games Co., Ltd.) was incorporated in 2008 in Seoul, Korea as an interactive entertainment studio, focused on the development and publishing of casual games and mobile applications. DDI is a subsidiary of DoubleU Games Co., Ltd. (“DUG” or “DoubleU Games”), a Korean company and our controlling shareholder holding 67.1 % of our outstanding shares. In 2017, DDI acquired DoubleDown Interactive, LLC (“DDI-US”) from International Gaming Technologies (“IGT”) for approximately $825 million. DDI-US, with its principal place of business located in Seattle, Washington, is our primary revenue-generating company. On October 31, 2023, the Company closed its previously announced acquisition of iGaming operator, SuprNation AB (together with its subsidiaries, “SuprNation”). The acquisition diversifies the digital games categories that the Company addresses with the addition of three real-money iGaming sites in Europe. Following the closing, SuprNation AB is a direct, wholly-owned subsidiary of DDI-US.
We develop and publish digital gaming contents on various mobile and web platforms through our multi-format interactive all-in-one game experience concept. We host DoubleDown Casino, DoubleDown Classic, and DoubleDown Fort Knox within various formats, as well as SuprNation’s three brands, Duelz, VoodooDreams, NYSpins, on web platforms.
On September 2, 2021, we completed our initial public offering (“IPO”) of American Depositary Shares (“ADSs”), each representing 0.05 share of a common share, with par value of ₩10,000 per share, of the Company. Our ADSs trade on the NASDAQ Stock Market (“NASDAQ”) under the symbol “DDI.”
2. Basis of preparation and material accounting policies
Basis of preparation
The accompanying condensed consolidated interim financial statements are presented in conformity with International Financial Reporting Standards (“IFRS Accounting Standards”) as issued by International Accounting Standard Board (“IASB”), and include the accounts of DDI and its controlled subsidiaries. All intercompany transactions, balances, and unrealized gains or losses have been eliminated. Our unaudited condensed consolidated interim financial statements include all adjustments of a normal, recurring nature necessary for the fair statement of the results for the interim periods presented. The results for the interim period presented are not necessarily indicative of those for the full year. The condensed consolidated interim financial statements should be read in conjunction with our consolidated financial statements for the year ended December 31, 2024.
Use of estimates
The preparation of financial statements in conformity with IFRS requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures. We base our estimates and assumptions on current facts, historical experience, and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and the actual results, future operating results may be affected.
The significant accounting estimates and assumptions used in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the preparation of the annual consolidated financial statements for the year ended December 31, 2024, except for the estimation method used in determining income tax expense.
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The income tax expense for the interim period is calculated by applying the estimated average annual effective tax rate to the profit before tax for the period.
Accounting policies
The accounting policies applied in the preparation of these condensed consolidated interim financial statements are consistent with those applied in the preparation of the consolidated financial statements as of and for the year ended December 31, 2024, except for the adoption of new standards or interpretations effective from January 1, 2025
New standards and interpretations adopted during the interim period
Amendments to IAS 21 - Lack of Exchangeability
The amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates will require the application of a consistent approach when assessing whether a currency can be exchanged for another currency and, when it cannot, determining the exchange rate to be used, and the related disclosures. The amendments are effective for annual reporting periods beginning on or after January 1, 2025, with earlier adoption permitted. The Company does not expect the adoption of these amendments to have a material impact on the Company’s condensed consolidated interim financial statements.
3. Financial instruments
3.1. Financial assets
Financial assets by category as of March 31, 2025, and December 31, 2024, are as follows (in thousands):
| March 31, 2025 | ||||||||
| Financial assets at fair value through profit or loss | Financial assets measured at amortized cost | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short-term investments | ||||||||
| Accounts receivable, net | ||||||||
| Accrued income | ||||||||
| Financial assets at fair value through profit or loss | ||||||||
| Total | $ | $ | ||||||
| Non-current assets | ||||||||
| Financial assets at fair value through profit or loss | ||||||||
| Total | $ | $ | ||||||
| December 31, 2024 | ||||||||
| Financial assets at fair value through profit or loss | Financial assets measured at amortized cost | |||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short-term investments | ||||||||
| Accounts receivable, net | ||||||||
| Accrued income | ||||||||
| Total | $ | $ | ||||||
| Non-current assets | ||||||||
| Financial assets at fair value through profit or loss | ||||||||
| Total | $ | $ | ||||||
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Financial liabilities by category as of March 31, 2025, and December 31, 2024, are as follows (in thousands):
| March 31, 2025 | ||||||||
| Financial liabilities at fair value through profit or loss | Financial liabilities measured at amortized cost | |||||||
| Current liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
Accrued expenses (1) | ||||||||
| Current lease liabilities | ||||||||
| Financial liabilities at fair value through profit or loss | ||||||||
| Total | $ | $ | ||||||
| Non-current liabilities | ||||||||
| Non-current lease liabilities | ||||||||
| Long-term borrowings with related party | ||||||||
| Other non-current liabilities | ||||||||
| Total | $ | $ | ||||||
(1)Annual leave allowance that should be paid to employees is excluded.
| December 31, 2024 | ||||||||
| Financial liabilities at fair value through profit or loss | Financial liabilities measured at amortized cost | |||||||
| Current liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
Accrued expenses (1) | ||||||||
| Current lease liabilities | ||||||||
| Total | $ | $ | ||||||
| Non-current liabilities | ||||||||
| Non-current lease liabilities | ||||||||
| Long-term borrowings with related party | ||||||||
| Other non-current liabilities | ||||||||
| Total | $ | $ | ||||||
(1)Annual leave allowance that should be paid to employees is excluded.
3.3. Fair value hierarchy
Fair value hierarchy classifications of the financial assets and liabilities that are measured at fair value disclosed in fair value as of March 31, 2025, and December 31, 2024, are as follows (in thousands):
| March 31, 2025 | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Financial assets and liabilities at fair value through profit or loss | ||||||||||||||
| Financial assets | $ | $ | $ | $ | ||||||||||
| Financial liabilities | ||||||||||||||
F-8
| December 31, 2024 | ||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Financial assets and liabilities at fair value through profit or loss | ||||||||||||||
| Financial assets | $ | $ | $ | $ | ||||||||||
| Financial liabilities | ||||||||||||||
3.4. Valuation techniques and the inputs
The valuation techniques and inputs used for fair value measurements and disclosed fair values categorized within Level 2 and Level 3 of the fair value hierarchy as of March 31, 2025, and December 31, 2024, are as follows (in thousands):
| March 31, 2025 | December 31, 2024 | Level | Valuation techniques | |||||||||||
| Financial assets at fair value through profit or loss | $ | $ | 3 | Market-based fair value approach | ||||||||||
| Financial assets at fair value through profit or loss | $ | $ | 2 | Discounted cash flow method | ||||||||||
| Financial liabilities at fair value through profit or loss | $ | $ | 2 | Discounted cash flow method | ||||||||||
3.5. Net gains or losses by category of financial instruments
| Three months ended March 31, | ||||||||
| (in thousands) | 2025 | 2024 | ||||||
| Financial assets at fair value through profit or loss | ||||||||
| Gain on valuation of financial assets | $ | $ | ( | |||||
| Sub-total | $ | $ | ( | |||||
| Financial assets at amortized cost | ||||||||
| Interest income | ||||||||
| Gain on foreign currency transactions | ||||||||
| Unrealized gain on foreign currency | ||||||||
| Loss on foreign currency transactions | ( | ( | ||||||
| Unrealized loss on foreign currency | ( | ( | ||||||
| Sub-total | $ | $ | ||||||
| Total | $ | $ | ||||||
| Financial liabilities at fair value through profit or loss | ||||||||
| Loss on valuation of financial liabilities | $ | ( | $ | |||||
| Sub-total | $ | ( | $ | |||||
| Financial liabilities at amortized cost | ||||||||
| Interest expense | ( | ( | ||||||
| Gain on foreign currency transactions | ||||||||
| Unrealized gain on foreign currency | ||||||||
| Loss on foreign currency transactions | ( | ( | ||||||
| Sub-total | ( | ( | ||||||
| Total | $ | ( | $ | ( | ||||
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4. Intangible assets and goodwill
Changes in the net book value of intangible assets as of March 31, 2025, and March 31, 2024, are as follows (in thousands):
| March 31, 2025 | |||||||||||||||||||||||
| Goodwill | Trademarks | Customer relationships | Purchased technology | Development costs | Software | Total | |||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Acquisition | |||||||||||||||||||||||
| Amortization | ( | ( | ( | ( | ( | ||||||||||||||||||
| Translation differences | |||||||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| March 31, 2024 | |||||||||||||||||||||||
| Goodwill | Trademarks | Customer relationships | Purchased technology | Development costs | Software | Total | |||||||||||||||||
| Beginning balance | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
| Acquisition | |||||||||||||||||||||||
| Amortization | ( | ( | ( | ( | |||||||||||||||||||
| Translation differences | ( | ( | ( | ( | ( | ||||||||||||||||||
| Ending balance | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
5. Lease
5.1. Our leases primarily consist of real estate leases for office space and do not have any non-lease components. The leases typically run for a period of 2 ~10 years, with an option to renew or terminate the lease after that date. No restrictions or covenants are imposed on leases, but the lease assets shall not be provided as collateral for borrowings.
5.2. Changes in right-of-use assets and lease liabilities:
Changes in right-of-use assets and lease liabilities as of March 31, 2025, and March 31, 2024 are as follows (in thousands):
| Right-of-use assets | Lease liabilities | |||||||
| Office | ||||||||
| Balance at January 1, 2025 | $ | $ | ||||||
| Depreciation | ( | — | ||||||
| Interest expense relating to lease liabilities | — | |||||||
| Payments of lease liabilities | — | ( | ||||||
| Translation differences | ||||||||
| Balance at March 31, 2025 | $ | $ | ||||||
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| Right-of-use assets | Lease liabilities | |||||||
| Office | ||||||||
| Balance at January 1, 2024 | $ | $ | ||||||
| Depreciation | ( | — | ||||||
| Interest expense relating to lease liabilities | — | |||||||
| Payments of lease liabilities | — | ( | ||||||
| Translation differences | ( | ( | ||||||
| Balance at March 31, 2024 | $ | $ | ||||||
6. Long-term borrowings
The following table represents borrowings from DoubleU Games as follows (in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
| $ | $ | |||||||
(1) They extended three loans to us on May 25, 2018, August 27, 2018, and November 26, 2018 (collectively, the “4.6 % Senior Notes”), and the aggregate outstanding principal amount as of March 31, 2025, was $34.1 million. In May 2024, a voluntary interest payment of $9.6 million was made, and the maturity of each note from a related party, originally due on May 27, 2024, was extended by two years to May 27, 2026, including the remaining outstanding principal amount under the 4.60 % Senior Notes.
7. Retirement benefit plan
7.1 Defined benefit pension plan
We operate a defined benefit pension plan under employment regulations in Korea. The plan services the employees located in Seoul and is a final wage-based pension plan, which provides a specified amount of pension benefit based on length of service. The service cost components of the net periodic benefit costs are charged to current operations based on the employee’s functional area. The change in actuarial gains or losses, which is not significant, was included in other comprehensive income.
7.2 Details of defined benefit liabilities
The following table presents net defined benefit liabilities (defined benefit assets) as follows (in thousands):
| March 31, 2025 | December 31, 2024 | ||||||||||
| Present value of defined benefit obligations | $ | $ | |||||||||
| Fair value of plan assets | ( | ( | |||||||||
| Net defined benefit liabilities (assets) | $ | $ | ( | ||||||||
8. Income taxes
The income tax expense for the interim period has been recognized based on management’s best estimate of the weighted average annual effective tax rate expected for the full fiscal year ending December 31, 2025. Separately, management estimates that the weighted average annual effective tax rate for the interim period ended March 31, 2025, will be 27.0 %, compared to 20.8 % for the interim period ended March 31, 2024.
9. Shareholders’ equity
We have 200,000,000 2,477,672 10,000
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9.1. Changes in share capital
The following table represents common share, share capital and premium as follows (in thousands, except shares):
| Common shares | Share capital | Share premium | Total | |||||||||||
| Balance at January 1, 2024 | $ | $ | $ | |||||||||||
| Balance at March 31, 2024 | $ | $ | $ | |||||||||||
| Balance at January 1, 2025 | $ | $ | $ | |||||||||||
| Balance at March 31, 2025 | $ | $ | $ | |||||||||||
10. Revenue from contract with customers
10.1 Disaggregation of revenue
The Company distinguishes between revenue recognized over time and revenue recognized at a point in time.
The table below presents revenue by service contract type and the timing of performance obligation satisfaction (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
Type of service (1) | ||||||||
| Social casino game | $ | $ | ||||||
Geographical market (1) | ||||||||
| U.S. | ||||||||
| International | ||||||||
| Total | $ | $ | ||||||
Timing of revenue recognition (1) | ||||||||
| Over the time | ||||||||
| At a point in time | ||||||||
| Total | $ | $ | ||||||
(1)iGaming revenues are excluded, amounting to $13,211 thousand for the three months ended March 31, 2025 and $8,319 thousand in the three months ended March 31, 2024
The following table disaggregates revenue between mobile and web platforms (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Mobile | $ | $ | ||||||
| Web | ||||||||
Total (1) | $ | $ | ||||||
(1)iGaming revenues are excluded, amounting to $13,211 thousand for the three months ended March 31, 2025 and $8,319 thousand in the three months ended March 31, 2024.
10.2 Contract assets, contract liabilities with customers
The following table summarizes our opening and closing balances in contract assets and contract liabilities (in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
Contract assets (1) | $ | $ | ||||||
Contract liabilities (2) | ||||||||
(1)Contract assets are included within prepaid expenses and other assets in our consolidated interim financial position.
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(2)The revenue recognized during the current year from the contract liabilities balance at the beginning of the reporting period is $1,754 thousand for the three months ended March 31, 2025 and $2,520 thousand for the three months ended March 31, 2024.
11. Classification of operating expenses by nature
Details of classification of expenses by nature for the three months ended March 31, 2025, and 2024 are as follows (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Personnel expenses | $ | $ | ||||||
| Depreciation and amortization | ||||||||
| Depreciation of right-of-use assets | ||||||||
| Taxes and dues | ||||||||
| Fees and commissions | ||||||||
| Advertising expenses | ||||||||
| Other expenses | ||||||||
Total (1) | $ | $ | ||||||
12. Earnings per share
12.1. Basic earnings per share is computed by dividing earning by the weighted-average number of common shares outstanding for the period, without consideration for potentially dilutive securities. The following table presents the calculation of basic earnings per share (in thousands, except share and per share amounts):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Profit applicable to DoubleDown Interactive Co., Ltd. | $ | $ | ||||||
| Weighted average shares outstanding - basic | ||||||||
| Basic earnings per share | $ | $ | ||||||
12.2. Diluted earnings per share is computed by dividing profit applicable to owners of the Company by the weighted-average number of common shares and dilutive common share equivalents outstanding for the period. The Company does not
13. Commitments and contingencies
13.1. Publishing and license agreements
DoubleU Games
We entered into the DoubleU Games License Agreement on March 7, 2018, which was subsequently amended on July 1, 2019 and November 27, 2019. On October 1, 2023, DDI-US entered into the Game Development Services Agreement with DoubleU Games, which supersedes the DoubleU Games License Agreement. Pursuant to the Game Development Services Agreement, DoubleU Games grants us, through DDI-US, an exclusive license to develop and distribute certain DoubleU Games social casino game titles and sequels thereto in the social online game field of use. We are obligated to pay a royalty
F-13
license fee to DoubleU Games in connection with these rights, with certain customary terms and conditions. As of March 31, 2025, we licensed from DUG approximately 50 game titles under the terms of this agreement.
In October 2023, we, through DDI-US, entered into a Game Development Services Agreement with DoubleU Games pursuant to which DDI-US will pay service fees to DoubleU Games for certain game maintenance services and product planning and user analysis services provided by DoubleU Games.
We, through SuprPlay Limited, also entered into a new game license agreement with DoubleU Games with effect from August 20, 2024. We are obligated to pay a royalty license fee to DoubleU Games in connection with these rights, with certain customary terms and conditions.
International Gaming Technologies (“IGT”)
In 2017, we entered into a Game Development, Distribution, and Services Agreement with IGT. Under the terms of the agreement, IGT will deliver game assets so that we can port (a process of converting the assets into functioning slot games by platform) the technology for inclusion in our gaming apps. The agreement includes game assets that are used to create new games. Under the agreement, we paid IGT an initial royalty rate of 10 % of revenue for their proprietary assets and 15 % of revenue for third-party game asset types. Effective January 1, 2019, we amended the agreement to revise the royalty rate for proprietary game asset types to 7.5 % of revenue. The initial term of the agreement is ten (10 ) years with up to two additional five-year periods. Costs incurred in connection with this agreement for the three months ended March 31, 2025 and 2024 totaled $0.8 million and $1.8 million, respectively, and are recognized as a component of cost of revenue.
13.2. Legal contingencies
On April 12, 2018, a class-action lawsuit was filed against DDI-US demanding a return of unfair benefit under the pretext that the Company’s social casino games are not legal in the State of Washington, United States. On August 29, 2022, DDI-US entered into an agreement in principle to settle the aforementioned case and associated proceedings, pursuant to which, among other things, DDI-US would contribute $145.25 million to the settlement fund. This agreement in principle received final court approval with the final contribution to the settlement fund made in June 2023. The Company recorded an accrual of $95.25 million for the year ended January 1, 2023, less $50 million for payments made in the fourth quarter of 2023, which was subsequently settled via a $95.25 million cash payment in the second quarter of 2023.
As of the reporting date, the Company is a defendant in three lawsuits seeking damages, filed in the states of Alabama, Kentucky, and Tennessee. These lawsuits allege that the Company’s social casino-themed games constitute unlawful gambling under state laws. The Company denies the allegations, contends its games are not gambling under the applicable law, contends that the case suffers from various procedural defects. At this time, the Company is unable to reasonably predict the outcome of these legal proceedings and cannot estimate what impact, if any, the litigation may have on the Company’s condensed consolidated interim financial statements.
13.3. Director and Officers’ indemnification agreement
The Company’s maximum aggregate liability for all loss and expenses on account of any and all requests for indemnity under the Indemnification Agreement or any similar indemnity agreement with any other indemnitee will be $5,000,000 per every 12-month period.
13.4. Other matters
IGT Letter
In March 2025, DDI-US received a letter from IGT (“IGT Letter”) purporting to terminate the Company’s licenses to develop and distribute IGT social casino game titles throughout the United States. The IGT Letter cited the January 2025 public memo issued by the Washington State Gambling Commission (“WSGC”), where the WSGC encouraged companies
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offering virtual casino-style games to Washington residents to review their games and ensure compliance with state gambling regulations. While the outcome of this matter is currently uncertain, the Company believes that IGT has no basis to terminate the licenses and that the Company’s distribution of the licensed games is not prohibited under Washington State law.
SuprNation Performance Based Compensation
Contemporaneously with entering into the definitive agreement, the Company also adopted an -month performance-based incentive plan for certain key employees of SuprNation, under which the key employees may earn up to a total of $6.5 million in addition to $5.5 million held in escrow, which vest over the -month period. The performance-based incentive plan is contingent upon the achievement of certain revenue and other performance targets by the acquired business and the continued employment of such key employees between 2023 and 2025. Such plan became effective at the closing of the transaction. In August 2024, $4.2 million of the incentive plan was modified to be contingent solely upon continued employment. During three months ended March 31, 2025 and 2024, the Company recognized total expenses of $1.6 million and $1.6 million, respectively, for the performance-based incentive plan.
14. Related party transactions
14.1. Related party
Our related party transactions comprise of expenses for use of intellectual property, borrowings, and sublease. We may also incur other expenses with related parties in the ordinary course of business, which are included in the condensed consolidated interim financial statements. The related party is as follows:
| Relationship | Company name | ||||
| Controlling shareholder | DoubleU Games Co., Ltd | ||||
14.2. Transactions with related party
The following is a summary of expenses charged by DoubleU Games (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Royalty expense | $ | $ | ||||||
| Other expense | ||||||||
14.3 Account balances with related party
Amounts due to DoubleU Games are as follows (in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
| Accounts payable and accrued expenses | $ | $ | ||||||
| Other receivables | ||||||||
14.4. Borrowing transaction with related party
Borrowing transaction details to DoubleU Games are as follows (in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
| $ | $ | |||||||
Accrued interest on | ||||||||
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| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Interest expense | $ | $ | ||||||
14.5. Lease transactions with related party
Lease transaction details to DoubleU Games, are as follows (in thousands):
| March 31, 2025 | December 31, 2024 | |||||||
| Right-of-use assets | $ | $ | ||||||
| Lease liabilities | ||||||||
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Payments | $ | $ | ||||||
| Interest expenses | ||||||||
15. Segment information
15.1. Segment reporting
Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, our Chief Executive Officer, in making decisions regarding resource allocation and assessing performance. Total assets and liabilities for each segment are not reported to chief operating decision maker. We operate in the following business segments: social casino games and iGaming (in thousands):
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| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue: | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ||||||||
| Total Revenue | $ | $ | ||||||
| Advertising expenses: | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ||||||||
| Total advertising expenses | $ | $ | ||||||
| Depreciation and amortization (including right-of-use assets): | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ||||||||
| Total depreciation and amortization (including right-of-use assets) | $ | $ | ||||||
| Interest income: | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ||||||||
| Total interest income | $ | $ | ||||||
| Interest expense: | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ||||||||
| Total interest expense | $ | $ | ||||||
| Profit before income tax: | ||||||||
| Social casino games | $ | $ | ||||||
| iGaming | ( | ( | ||||||
| Total profit before income tax | $ | $ | ||||||
15.2. Disaggregation of revenue and non-current assets
The Company’s business operations are located in domestic and international regions, including the United States. We believe disaggregation of our revenue based on platform and geographical location are appropriate categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
The following table presents our revenue disaggregated based on the geographical location of our players (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| U.S. | $ | $ | ||||||
| Canada | ||||||||
| United Kingdom | ||||||||
| Korea | ||||||||
| International-other | ||||||||
| Total | $ | $ | ||||||
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The following table presents non-current assets by geographical regions (in thousands):
| Three months ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Korea | $ | $ | ||||||
| U.S. | ||||||||
| Europe | ||||||||
Total (1) | $ | $ | ||||||
(1) The amounts related to financial assets at fair value through profit or loss and deferred tax assets are excluded.
15.3. Major external customers
No individual external customer accounted for more than 10% of consolidated revenue for each of the three months ended March 31, 2025 and 2024.
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