DoubleDown Interactive, a prominent social casino franchise, has recently announced its plan to acquire SuprNation for a cash deal worth $35 million. The acquisition, expected to close in Q2 2023 pending customary closing conditions, marks DoubleDown’s first strategic move since its IPO. With this acquisition, DoubleDown aims to enhance its presence in the European iGaming market and explore new growth opportunities in other geographies. The incorporation of SuprNation’s gaming titles and engaging gamification features into DoubleDown’s portfolio is expected to fuel the company’s growth while leveraging its extensive online gaming experience.
Enhancing Presence in the European iGaming Market:
DoubleDown’s CEO, Keuk Kim, expressed his satisfaction with the acquisition, highlighting its potential to complement the company’s existing social casino franchise and expand its reach in the European iGaming market. SuprNation’s established customer base and captivating gaming titles provide a strong foundation for growth. DoubleDown plans to nurture this loyal customer base while seeking synergies that arise from the collaboration. Additionally, the acquisition positions DoubleDown to enter new growth markets beyond Europe in the future.
Shared Vision for Growth:
SuprNation’s Co-CEOs, Joakim Stockman and Henric Andersson, expressed their excitement about joining forces with DoubleDown. They look forward to capitalizing on the strengths of both companies to accelerate expansion and solidify their presence in real money gaming. By combining their expertise, they aim to develop unique products and implement efficient marketing strategies that drive growth in the coming years.
Financial Performance Analysis:
While DoubleDown’s Q3 results showed a 9% decline in revenue, the company experienced an increase in operating costs, reaching $124.1 million compared to $59.2 million in Q3 2021. However, the adjusted EBITDA for the same period decreased to $25 million from $30.2 million in the previous year. Analyzing the first nine months of the year, DoubleDown’s revenue dipped to $244.9 million, down from $276.9 million in 2021. Surprisingly, the adjusted EBITDA for the first nine months of 2022 rose to $76.9 million, compared to $61 million in the prior year.
DoubleDown Interactive’s acquisition of SuprNation represents a strategic move to expand its presence in the European iGaming market. The addition of SuprNation’s gaming titles and gamification features strengthens DoubleDown’s portfolio and provides an opportunity for growth. By leveraging their combined strengths, both companies aim to accelerate expansion, develop unique products, and implement effective marketing strategies. While DoubleDown faced a decline in revenue in recent quarters, the acquisition positions the company for future growth and opens doors to new geographies. The industry will be closely monitoring the progress of this acquisition and its impact on DoubleDown’s performance in the iGaming sector.