Q1 Results: DoubleDown Profits Up, Full House Still at Loss

DoubleDown's revenue and profit increased in the first quarter.

DoubleDown Interactive made $57.1 million in the first three months of the year, 13.5% more than the same time last year. Their profit after all expenses also went up to $30.3 million, a 27.9% increase. The company earned an extra $8.3 million because they bought another company, SuprNation. Even if you don't count that extra money, their earnings still went up by 2.8%, showing they are making more money on their own too.

Key Performance Indicators

Several important factors affected how much profit the company made.

• ARPDAU (average revenue per daily active user) increased from $1.03 to $1.26.
• Monthly revenue per payer for social casino and free-to-play games went up from $221 to $281.

DoubleDown's operating costs increased by 9.4% to $57.1 million, but they also earned $7.3 million from other sources. As a result, their profit before taxes rose by 46.0% to $7.3 million.

Strategic Financial Management

In Keuk Kim, the CEO, said that DoubleDown is spending money wisely and has a good amount of cash on hand. With this money, the company can grow on its own and buy other companies to make more money and benefit the people who own shares in the company.

Full House is facing difficulties, even though it is making more money.

Full House Resorts made more money in the first quarter, with their income going up to $69.9 million, a 39.5% rise from before. Most of this money, about 74%, came from their casino business. A big part of this growth came from their Midwest & South area, which includes the American Place casino in Illinois.

Full House did not make money this quarter. Their costs went up by 23.5%, reaching $70.5 million, and they also had to pay $10.3 million in interest. Because of these factors, they lost $10.9 million before tax and had a net loss of $11.3 million, which is a bit less than the $11.4 million they lost last year.

Division Breakdown

Full House experienced growth in all its divisions.

• The Midwest & South segment increased revenue by 33.9%, totaling $54.6 million.
• Revenue for the West segment was up by 60.4% to $13.0 million.
• Contracted Sports Wagering saw a 91.7% hike, reaching $2.3 million.

Full House's financial problems increased because they had to pay $416,000 in taxes, while the year before, they actually received money back from taxes.

Outlooks and Operations

Daniel Lee, the head of Full House, talked about how well the company did in the first quarter. He pointed out that American Place made the most money it ever has in a quarter with $25.8 million, even though it still lost money overall.

This quarter, the two companies saw different financial results because of their different ways of running their businesses and spending money. DoubleDown made more profit because it bought some companies and used its money wisely. Full House, on the other hand, couldn't make a profit despite earning more money because it spent a lot on running the business and paying off debt.