Financial Data and Key Metrics Changes - For Q2 2025, the company reported consolidated revenue of $84.8 million, with adjusted EBITDA of $33.5 million, reflecting a decline from $88.2 million in Q2 2024 [6][12] - Social casino revenues decreased by 14% year-over-year, totaling $69.3 million, while iGaming revenues from Super Nation nearly doubled, increasing by 96% to $15.5 million [12][13] - Adjusted EBITDA margin was 39.5% for Q2 2025, down from 42.5% in Q2 2024, with net cash flows from operating activities at $19.7 million, compared to $34.8 million in Q2 2024 [17][18] Business Line Data and Key Metrics Changes - The Flexit DoubleDown Casino app remains a significant cash flow generator, with ARPDAU at $1.33, unchanged from Q2 2024, and payer conversion rate increased to 7% from 6.7% in Q2 2024 [7][14] - Direct-to-consumer (DTC) revenue now accounts for over 15% of total social casino revenue, indicating a successful shift towards DTC monetization [8] - Super Nation's revenue of $15.5 million in Q2 2025 marked the highest quarterly performance since its acquisition, reflecting a growth of $2.3 million from the previous quarter [9][10] Market Data and Key Metrics Changes - The company is expanding its presence in Europe through the acquisition of Val Games, which primarily generates revenue in Germany [8] - The integration of Wow Games is expected to diversify revenue streams and enhance operational success in new markets [9][10] Company Strategy and Development Direction - The company is committed to enhancing shareholder value through strategic acquisitions and investments in both social casino and iGaming sectors [6][10] - The acquisition of Wow Games is seen as an opportunity to leverage existing strengths in the social casino business while expanding into the European market [8][32] - Future growth strategies include launching additional brand sites for Super Nation and exploring new gaming categories and geographic expansions [48][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the social casino industry due to expected revenue declines in 2025 but remains committed to product development and marketing initiatives [15][16] - The company is optimistic about the growth potential of Super Nation, with plans to enhance retention and operational efficiency [48][56] Other Important Information - The transition to IFRS reporting is expected to have minimal impact on financial statements, primarily affecting lease treatment [4][12] - As of June 30, 2025, the company had a cash position of approximately $481.2 million, which was reduced following the acquisition payment [18][19] Q&A Session Summary Question: Balancing growth versus profitability for Wow Games - Management views Wow Games as an exciting opportunity to leverage strengths in Europe and plans to support its growth through existing expertise [24][25] Question: Future targets for direct-to-consumer revenue - Management is pleased with the current DTC revenue exceeding 15% and anticipates further growth but has not set a specific long-term target [26][28] Question: Background on the Wow Games acquisition process - The acquisition was seen as opportunistic, complementing the company's existing social casino business without detracting from other growth searches [32][33] Question: Impact of regulatory actions on the business - Management clarified that the company is not involved in the sweepstakes business and has not seen a quantifiable positive impact from regulatory actions against competitors [34][35] Question: Revenue and profitability expectations for iGaming - Management believes that Super Nation can achieve a profit margin of over 10% once sufficient scale is reached, with plans for further brand site launches [47][48] Question: Expansion plans beyond current markets - The company is exploring additional licenses in various European countries and Canada, aiming for regional expansion [53][54]