DoubleDown Interactive, a developer and publisher of digital social casino games, revealed the company's financial results for the second quarter of 2022.
Revenues from the company decreased from $93.2m in the second quarter of 2021 to $80.6m in the second quarter of 2022 while operating costs increased from $71.2m during the same time last year to $128.6m.
The increase in operating costs was attributed to a $71.5m non-cash accrual which was included in general and administrative expenses associated with previously announced legal proceedings.
The second quarter also resulted in a net income loss of $34.1m, or a loss of $13.75 per common share.
Adjusted EBITDA decreased from $31.1m for the second quarter of 2021 to $26.1m in the second quarter of this year.
Average monthly revenue per payer increased from $218 in Q2 of 2021 to $226 in the second quarter of 2022.
DoubleDown Chief Executive Officer In Keuk Kim commented: "Our flexible cost structure allowed us to generate another quarter of healthy adjusted EBITDA margins in excess of 30% and higher than the prior quarter, as our second quarter operating costs, excluding a non-cash accrual, decreased over 20% from the prior year, also contributing to positive free cash flow and net income.
"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."
Net cash flows provided by operating activities for the second quarter of 2022 was $21.1m which is a decrease compared to $21.8m in the the same period last year.
Kim added: "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[s]."
