1. What Happened? – DoubleU Games Q2 2025 Earnings Breakdown

DoubleU Games reported revenue of KRW 171.9 billion, operating profit of KRW 54.3 billion, and net profit of KRW 32.9 billion for Q2 2025. While revenue slightly missed expectations, operating profit and net profit fell short by 8.1% and 37.1%, respectively. The sharp decline in net profit sent shockwaves through the market.

2. Why Did This Happen? – Analyzing the Underperformance

The primary driver of this underperformance was an increase in selling, general, and administrative expenses, specifically advertising and development costs. Despite growth in mobile game revenue, declining web game revenue and increased costs negatively impacted profitability. Increased financial expenses and foreign exchange losses from overseas operations also contributed to the decline in net profit.

3. What’s Next? – Future Outlook and Investment Strategies

While downward pressure on the stock price is expected in the short term, the mid-to-long-term outlook depends on several factors. Key variables include marketing cost optimization, successful new game launches, profitability improvement in the iGaming business, and the success of M&A activities like the Paxie Games acquisition. Increased competition in the global gaming market and foreign exchange volatility should also be considered.

4. What Should Investors Do? – Investment Guide

  • Short-term investors should be cautious of stock price volatility and prepare for the possibility of further declines.
  • Long-term investors should monitor future earnings releases for signs of improving profitability and track the performance of new investments and cost optimization efforts. Cautious investment is recommended after confirming signs of a rebound in performance.