W Games has given a positive outlook on resolving uncertainties in relation to the ongoing class action to return unfair profits in the U.S. Furthermore, the second half of the year’s performance also predicted a rebound through the good defense of the flagship games “Double Down Casino” and “Double U Casino.”

Choi Jae-young, CEO of W Games, said in a conference call on the 10th, “In the first half of 2022, consolidated operating profit fell 0.7% compared to the first half of 2022 and decreased 7.1% year-on-year.” “This is based on the virtuous cycle effect of securing new users during the last two years of the pandemic and converting paid payers accordingly.”

“In the second quarter, operating profit was 41.8 billion won, margin rate was 28%, EBITDA was 45.5 billion won, margin rate 30%, and net loss was 39.1 billion won,” he said. “Although the lawsuit was not completed, Double-Down casino Interactive’s parent company reflected the lawsuit provisions as operating expenses in the second quarter of 2022.”

Furthermore, he said, “We recognized 92.5 billion won in litigation provisions as one-time non-operating expenses, and if excluded, the net profit in the second quarter is estimated to be about 32.2 billion won,” adding, “We believe it is possible to resolve related lawsuits.”

In addition, “Currently, W Games has 550 billion won in cash assets at the end of the second quarter of 2022 and EBITDA has remained very stable, exceeding 200 billion won every year,” he said. “The financial impact of the lawsuit is limited. Therefore, I would like to emphasize that the progress of the lawsuit, which has been slow for the past four years, has recently been looking for a solution.

“We will eliminate uncertainty about the future through litigation resolution,” he said. “Management plans to do its best to help current reserves and stable operating cash flow become momentum for growth of existing social casinos and investment in new games and new businesses.”

It also predicted a rebound in sales for its flagship games “Double Down Casino” and “Double U Casino.”

CFO Choi Jae-young said, “By platform, the web recorded 35.7 billion won and mobile recorded 113.9 billion won, accounting for 76 percent of mobile sales,” adding, “The main games, Double Down Casino, recorded 96% of total sales, and Double U Casino, accounting for 65.6% and 30.4%.”

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