The acquisition of SuprNation, initially announced in January, signifies DoubleDown's ambitious expansion into real-money gaming. This move has added three notable real-money igaming brands under DoubleDown's umbrella: VoodooDreams, NYSpinz, and Duelz.
Founded in 2015, SuprNation made a splash in the online casino scene with its inaugural product launch in the summer of 2016. With licenses in critical regions such as Malta, Sweden, the Isle of Man, and Great Britain, it has maintained a robust presence in the gaming world.
A New Leadership and Vision
In the wake of this acquisition, DoubleDown's CEO, In Keuk Kim, will wear an additional hat, assuming the role of chairman at SuprNation. Kim was enthusiastic, stating, "Acquiring SuprNation is a strategic move, enabling us to penetrate high-growth gaming categories that resonate with our core social casino offerings. Our game developers are poised to leverage their expertise, along with our marketing platform, to scale the business effectively."
Highlighting SuprNation's stronghold in European markets like Sweden and the UK, Kim conveyed optimism about furthering their reach into more regulated jurisdictions. "With a vast portfolio of casino games and development prowess, we are confident in magnifying SuprNation's unique online casino gaming experiences, particularly their flagship title, Duelz.com, to propel business growth."
Opportunities and Synergies
Kim shed light on the myriad revenue growth opportunities this partnership unlocks. Combining DoubleDown's and SuprNation's proficiencies in player engagement and monetization promises a profitable future. Kim noted, "We anticipate synergies in player acquisition, marketing, back office in-sourcing, and potential app development for Apple and Android. Welcoming SuprNation's team to DoubleDown, I am eager to collaboratively steer our growth initiatives."
SuprNation's co-CEOs, Joakim Stockman and Henric Andersson, reciprocated the enthusiasm, emphasizing the prospects of amplifying SuprNation's real-money gaming operations. Both CEOs look forward to partnering with Kim and DoubleDown to unlock SuprNation's full potential.
Aiming for Revitalized Growth
Although DoubleDown reported a decline in Q2 revenue, with a 6.7% drop to $75.2 million and a decrease in active users, there was a silver lining. The company saw an uptick in net profit, which rose from $24.2 million to $37.3 million, and adjusted EBITDA, which increased from $25.0 million to $27.6 million. Reduced expenses, primarily from the previous year's Washington class action case-related costs, played a role in these positive figures. Kim is optimistic that the SuprNation acquisition will catalyze to invigorate gaming growth for DoubleDown.
Venturing into Real-Money Gaming
The acquisition of SuprNation by DoubleDown Interactive sets the stage for a new era in the online casino industry. With shared visions and collaborative efforts, the partnership is poised to redefine gaming standards and achieve unprecedented milestones.