DoubleDown Interactive Q2 Revenue Down 13% to $80.6 Million
DoubleDown Interactive, the developer of digital social casino games, has reported a drop in Q2 revenue to $80.6 million. This is down from $93.2 million in the same quarter in 2021 and shows a 13% decline year on year.
The operating costs for the company rose significantly to $128.6 million in the second quarter of 2022. This is due to a $71.5 million non-cash accrual associated with legal proceedings of a class action being included in the expenses section of the balance sheet.
As a result, DoubleDown Interactive returned a Net Income loss of $34.1 million for the second quarter of this year. In comparison to the same period of 2021 when the Net Income for the company was $18.4 million. The report highlighted the Adjusted EBITDA for the games developer had reduced year on year in Q2 from $31.1 million for 2021 to $26.1 million in 2022.
The report expanded on reasons for the fall in revenue in Q2 this year and cited that Covid was affecting the comparison figures. Also, the report pointed to a change in player patterns due to the global financial downturn and uncertain times.
Going forward DoubleDown Interactive is looking toward opportunities through possible mergers and acquisitions. It hopes this strategy will produce another income stream during the uncertain times the sector faces globally.
We recorded these results despite industry-wide headwinds relating to difficult year-over-year comparisons during a period of COVID-related lockdowns in 2021 and recent global inflation concerns that are impacting player behavior. Going forward, we expect our resilient business model to continue driving positive financial performance, while operationally we will strive to expand our business through a combination of improvements to our flagship game, DoubleDown Casino, and the addition of new gaming apps outside of social casino. Additionally, we are continuing to evaluate strategic M&A opportunities that can leverage our core capabilities and diversify our revenue stream outside of social casino.