16 Comments
User's avatar
Musings of a Compounder's avatar

Thank you for writing this up. Interesting situation. Bit of a weird ownership structure here, just want to make sure I understand it. There is a Korean listed public co (192080.KS) that owns ~66.7% of the US listed ADS shares and effectively controls everything? Weird that they purchased additional shares from the special sits fund in 2021 but did not in 2025. A little unclear how the cash flows between entities because 192080.KS does indeed pay an annual dividend but $DDI does not.

Elias Papadopoulos's avatar

Yeah I agree its a shame they didn't buy back the shares here. DoubleU games is an independent company that pays dividends out of their own operations, I think DDI retains all of their own earnings.

Fred Seibel's avatar

Thoughts on their recent acquisition of WHOW Games for 55 Million?

Elias Papadopoulos's avatar

Not enough to move the needle the acquisition barely makes a dent in the cash pile. However if they are using this as an entry into getting a European license to expand that way then makes sense.

Cik_research's avatar

An interesting idea for sure, and I have also looked at social casino companies. Regarding the performance of DDI compared to others, where did you find the industry data?

The trend of having fewer total users but higher revenue per user, is one I also see in other companies. It seems to be that the marginal user have left and, as you say, improving conversion/user monetization by use of segmenting and targeting using data. How did you reach the conclusion that DDI is a best in class operator?

Elias Papadopoulos's avatar

They are able to squeeze more money out of their customers compared to peers. I remember reading a detailed report of the industry I will try to find it again.

In DDI's annual report they also have a whole section going into their methodology on the data analytics of their casinos, something I haven't seen with others in the space

Cik_research's avatar

Sounds like they have a clear strategy on driving ARPDAU, which in my opinion is a very important part of operating a social casino app.

The operator I am looking at has metrics that exceed even DDI numbers. Their ARPDAU is around $2 and 8% conversion for the last 6 months.

If you are interested I’ll write an article on them in a few weeks. I hope it will be of use for you.

Lionheart Investing's avatar

There does tend to be some volatility safety in larger market caps. I don't worry about volatility that much but it does help when your stock DOESNT drop 70% over nothing 😂

Lionheart Investing's avatar

I like it! Definitely the kind of stuff I traffic in. Much larger market cap than I normally buy but definitely the type of play that I like :)

Elias Papadopoulos's avatar

Also larger than I'm used to but not necessarily a bad thing!

Geno Invest's avatar

Thank you for sharing a very interesting case. The operation seems stable and a clearly low valuation. As you mention it could be a value trap but the downside from here compared to potential upside seems asymmetric.

Luis Felippe's avatar

Thanks for sharing. I like reading this kind of short term thesis

Elias Papadopoulos's avatar

Thanks for reading

Show me the incentives...'s avatar

Really unique & interesting idea. Thanks for sharing.