Huuuge posts USD 25.3 mln adjusted EBITDA in Q1, vs. USD 24.6 mln consensus

Revenue in the first quarter fell 6.8 percent year on year to USD 62.4 million, but quarter o quarter it increased 1 percent, the PAP Biznes consensus was for USD 62.3 million in revenue.

Cash flow from operations was reported at USD 22.3 million.

Huuuge's flagship games - Huuuge Casino and Billionaire Casino - performed very well in the first quarter of 2025.

It was pointed out that this was mainly due to the changes and updates implemented at the end of 2024, including the new game economy and the Huuuge Pass.

The effectiveness of the new features is confirmed by the operational indicators of the first quarter of 2025: the number of daily active users (DAUs) increased by 4.4 percent quarter on quarter, while the average revenue per paying user (ARPPU) increased by 2.6 percent quarter on quarter and by 2.4 percent year on year.

"The number of daily paying users (DPU) was virtually unchanged relative to the fourth quarter of 2024. The improvement in operating indicators confirms the effectiveness of the strategy adopted by the company," it was written.

The direct-to-consumer (DTC) channel reached 20 percent revenue share in the first quarter and 21.5 percent in April 2025. It was reported that this is due to Huuuge's past investments in this sales channel.

Thanks to Apple's recent policy changes, a link to DTC is now available at Huuuge Casino and Billionaire Casino on iOS in the US. The company is looking forward to further growth in this channel and sees it as one of the key elements of its long-term strategy.

For the second consecutive quarter, Huuuge reported an adjusted EBITDA margin above 40 percent, with sales and marketing expenses down 26.5 percent year on year. This is mainly the result of optimizing budgets for new user acquisition (UA).

It has been indicated that cost discipline will remain a priority for Huuuge, but the company does not rule out selectively increasing marketing expenditures if growth trends in key operating indicators continue in future quarters.

"Our priority remains the long-term profitability of our business and strengthening the position of our flagship games in the social casino market by working to improve player engagement and dynamically grow the DTC channel," Wojciech Wronowski, CEO, quoted in the press release, said.

It was reported that high cash flow, stable revenues and a strong balance sheet position provide Huuuge with a solid financial foundation. The company intends to consistently execute its strategy, focusing on further development of its key social casino game segment.

At the same time, Huuuge is working intensively on the possibility of entering new markets and considering M&A transactions, selecting only those strategically suited to the company's business and with high growth potential.

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