[Edaily Reporter Park Jung-Soo ] DoubleUGames(192080)announced on the 29th that it expects improved profitability as the burden of platform fees is alleviated following Google Play’s policy to reduce in-app payment fees, which takes effect on the 30th in the U.S., the European Economic Area (EEA), and the U.K.
In accordance with a policy announced last March, Google is lowering its in-app payment fees from the previous maximum of 30% to 25% (20% service fee and 5% payment processing fee). Additionally, starting September 30, the company plans to further reduce fees to a minimum of 20% for transactions by new users in these regions who participate in the “Games Level Up” program.
DoubleUGames explained that, given its business structure—in which more than 80% of its social casino revenue comes from North America—it is expected to benefit from this policy. The fee reduction is also expected to be reflected in North American in-app purchase revenue for its flagship games, “DoubleU Casino” and “DoubleDown Casino.”
The expansion of its own DTC (Direct-to-Consumer) channels is also expected to contribute to improved profitability. As of the first quarter of this year, DTC revenue accounted for 38.7% of DoubleUGames’ social casino revenue. DTC is a model that offers direct payments through the company’s own website without going through app stores, resulting in lower platform commission costs and a more profitable structure.
DoubleUGames officials stated, “Since the majority of our social casino revenue comes from the North American market, this reduction in Google Play fees is a positive factor for improving profitability,” adding, “We will continue to strengthen our strategy to improve our revenue structure by expanding our DTC channels and reducing our dependence on platforms.”