DoubleDown Reports Strong Q2 Earnings Amid Pending Takeover Offer
DoubleDown Interactive (NASDAQ:DDI) reported strong second-quarter results on August 11, with net profit rising by 50.5% to $32.9 million and revenue increasing 11.2% to $94.3 million year-over-year. The growth was driven largely by a shift in the company's social casino business toward direct-to-consumer sales, which nearly quadrupled from $10.7 million to $40.5 million during the period. The European iGaming segment also contributed positively with revenue rising 9.8% year-over-year to $17 million due in part to new brand initiatives. Adjusted EBITDA increased by 17.2%, reaching $39.3 million, and operating cash flow for Q2 was reported at $24.6 million. Despite the strong financial performance, a pending takeover offer from DoubleU Games remains unresolved as of now. The controlling shareholder made an initial non-binding bid in April to acquire remaining shares at $11.25 per ADS.
Topics: cash flow earnings profit growth revenue increase takeover speculation