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DoubleDown Interactive Reports Fourth Quarter and Full Year 2023 Financial Results
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DoubleDown Interactive, a leading developer and publisher of digital games on mobile and web-based platforms, announced its unaudited financial results for the fourth quarter and year ended December 31, 2023. The Company’s consolidated financial results for the three- and twelve-month periods ended December 31, 2023 include 61 days of contributions from European iGaming operator, SuprNation, which was acquired by the Company on October 31, 2023.
Fourth Quarter 2023 vs. Fourth Quarter 2022 Summary:
- Revenue was $83.1 million in the fourth quarter of 2023 compared to $76.2 million in the fourth quarter of 2022. Revenue contributed by SuprNation totaled $4.3 million for the 61 days the Company owned and operated the business. Revenue exclusive of the contributions from SuprNation increased 3% year over year to $78.8 million.
- Operating expenses declined to $47.5 million in the fourth quarter of 2023 from $321.4 million in the fourth quarter of 2022, primarily reflecting the one-time, non-cash goodwill and intangibles impairment of $269.9 million incurred in the fourth quarter of 2022.
- Adjusted EBITDA was $36.2 million for the fourth quarter of 2023, an increase from $24.7 million for the fourth quarter of 2022, primarily due to higher revenue and lower cost of revenues and sales and marketing expenses, partially offset by higher general and administrative expenses. Adjusted EBITDA margin increased to 43.5% in the fourth quarter of 2023 from 32.4% in the fourth quarter of 2022.
- Net income was $25.5 million, or earnings per fully diluted common share of $10.27 ($0.51 per American Depositary Share (ADS)), in the fourth quarter of 2023, compared to a loss of $(194.4) million, or a loss of $(78.47) per fully diluted common share ($(3.92) per ADS), in the fourth quarter of 2022. Note each ADS represents 0.05 share of a common share.
- Average Revenue Per Daily Active User (ARPDAU) for the Company’s social casino/free-to-play games increased to $1.24 in the fourth quarter of 2023 from $0.98 in the fourth quarter of 2022 and $1.06 in the third quarter of 2023.
- Average monthly revenue per payer for the social casino/free-to-play games increased to $279 in the fourth quarter of 2023 from $227 in the fourth quarter of 2022 and $245 in the third quarter of 2023.
In Keuk Kim, Chief Executive Officer of DoubleDown, said: “Our fourth quarter results, which include a 3% year-over-year increase in core social casino revenue to $78.8 million and a 46% increase in Adjusted EBITDA to $36.2 million, highlight our best-in-class ability to monetize our loyal players combined with our disciplined approach to user acquisition and R&D spend which drives consistent profitability and strong free cash flow. We continue to deliver strong engagement metrics for our flagship social casino game DoubleDown Casino, as ARPDAU and average monthly revenue per payer rose 26% and 23%, respectively, compared to the 2022 fourth quarter. As a result, cash flows from operating activities were approximately $30 million in the fourth quarter.
“Our acquisition of SuprNation in the fourth quarter marked our entrance into the European iGaming market and we are moving quickly on a range of initiatives to scale the business which will be our initial focus before we turn to optimizing the cash flow generated by this business. These initiatives include increasing marketing investment and leveraging our legacy of marketing and product expertise to grow SuprNation’s market share in its core U.K. and Sweden markets.
“We place a primary focus on being capital efficient as reflected in our strong Adjusted EBITDA margins and free cash flow generation. At 2023 year-end, cash and cash equivalents and short-term investments net of current borrowing were approximately $235 million, which is equivalent to approximately $4.75 per ADS. Our strong net cash position and consistent ability to generate attractive free cash flow provides the Company with significant flexibility to evaluate further opportunities to deploy capital that would continue to expand our business in gaming categories with attractive addressable markets and where our operating discipline would ultimately deliver additional free cash flow and create new value for our shareholders.”
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Emerging Startup Adventura Gaming to Launch New Casino Table Game, Penn & Teller Casino Monte
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Adventura Gaming, a new boutique gaming company pioneering branded casino games that blend world renowned celebrities and brands with cutting-edge gameplay, is launching its casino table game, Penn & Teller Casino Monte, on March 3 at Rio Hotel & Casino. Creating an innovative table game experience with the beloved and iconic Penn & Teller, the game is poised to attract valuable new audiences to casinos as the first celebrity branded casino table game of its kind.
“We couldn’t be more proud to officially announce Adventura Gaming to the industry with the launch of our Penn & Teller Casino Monte, a groundbreaking table game that merges entertainment, innovation and the magic of one of the world’s most iconic duos,” said David Anthony, president and cofounder at Adventura Gaming. “By combining engaging gameplay with a celebrity brand that resonates with audiences outside of slot machines, we’re creating a fresh and exciting experience for players while delivering added value to casino operators,” added Cinnamon Booth, Adventura Gaming’s executive vice president and cofounder.
“Casino Monte is a brand-new table game that’s fiendishly fun,” remarked Penn Jillette, one half of the storied Penn & Teller duo. “When Adventura introduced us to this new casino table game concept, it quickly became clear—not only could we learn it and play it, but it was genuinely fun. I thought if we can learn it, anyone can, and they’ll have a great time doing it.”
As soon as they saw its engaging mechanics, Adventura Gaming was immediately captivated by its potential, and moved decisively to license and refine the game. Anthony and Booth said they’ve “loved the idea of Penn & Teller going all the way back to their three-card game shenanigans in Run DMC’s Tricky music video. So of course, we knew right away they were the only ones we wanted to partner with.”
Drawing in an audience with internationally recognized celebrity magicians Penn & Teller, and its original patented gameplay, Penn & Teller Casino Monte allows players to place a bet on ‘Penn,’ ‘&’ or ‘Teller’ and the higher the card, the better the chances to win.
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Plaza Hotel & Casino hosting Nike Pickleball Camp, March 14-16
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Offering 13 rooftop pickleball courts, the most of any Las Vegas resort, the Plaza Hotel & Casino in downtown Las Vegas will host a three-day Nike Pickleball Camp led by nationally-ranked professional pickleball player Rick Witsken, Friday, March 14 through Sunday, March 16, from 1 to 4 p.m. each day.
Open to players 18 years or older and at any skill level (beginner, intermediate, or advanced), the weekend camp gives participants the option to attend one, two, or three days of pickleball lessons and play that are designed to address specific needs, increase knowledge of the game, and help improve play in a fun and friendly environment.
The Nike Pickleball Camp will be led by Rick Witsken, a top ranked senior pro and co-founder of the National Pickleball League (NPL). Previously world-ranked on the Association of Tennis Professionals (ATP) in both singles and doubles play and currently ranked #1 on the Association of Pickleball Players (APP) Senior Pro Men’s standings, Witsken has won more than 100 senior and open pro medals and has served as director of over 50 camps. He currently hosts the “RipSken Pickleball” podcast and posts instructional videos online via the Midwest Pickleball club. He also founded the first public scholastic middle school pickleball team at Zionsville Middle School in Whitestown, Indiana.
The first day of the camp will focus on short and soft game skills, like dinks and drops. The second day highlights aggressive game skills, including drives, serves, returns, speed ups. The final day will culminate with strategy and positioning lessons.
All camp participants will receive a Nike Pickleball Camp t-shirt and prizes with their registration. They must bring their own pickleball paddle, athletic shoes, and water bottle. Upon arrival, all participants are evaluated by camp staff so that their personal instructional needs can be addressed throughout the weekend. Participants are grouped by ability first then by age per the camp director’s discretion, and adjustments are made as needed during camp.
Compliance Updates
MGCB Issues Cease-and-Desist Order to BetNow
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The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetNow.eu Sportsbook, Casino, and Racebook (BetNow), an offshore online casino operating illegally within the state. The site offers a range of casino games, including slots, poker, and live dealer options such as blackjack, roulette, and craps, as well as betting services for sports events and horse races.
“This unlicensed operator not only violates Michigan law, but also exposes consumers to significant risks. Our job is to protect Michigan residents by ensuring that all online gambling is conducted legally and responsibly,” MGCB Executive Director Henry Williams said.
BetNow offers numerous payment options for player deposits, including Visa, Mastercard, American Express, Zelle, Apple Pay, Google Pay, PayPal, Bitcoin, Ethereum, Litecoin, Tether, Bitcoin Cash, CashMG, and bank transfers. However, players must wager their entire initial deposit before becoming eligible to withdraw any winnings.
The MGCB’s investigation found that BetNow is in violation of several key state laws, including:
• Lawful Internet Gaming Act: Only licensed operators are permitted to offer internet gaming. Only Michigan-licensed casinos and federally authorized tribal casinos can apply for a gaming license under state law.
• Michigan Gaming Control and Revenue Act: Operating an unlicensed gambling business is a felony in Michigan, carrying penalties of up to 10 years in prison, a fine of up to $100,000, or both.
• Michigan Penal Code: Gambling, which involves payment based on the outcome of an uncertain event, is prohibited under state law. Accepting money with the understanding it will be paid based on a game of chance is illegal.
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