Good morning and good evening. We would like to thank the analysts and domestic and foreign investors who are attending the 2023 Q1 earning presentation conference call of DoubleUGames. Prior to the presentation, I would like to pass along a few requests. The performance data is prepared for the convenience of investors based on the provisional financial statements for the first quarter of 2023. This data was written with reference to objective standards. However, please be aware that some predictions, forecasts, or expressions based on subjective judgment may be included, and numbers and interpretations that do not match this data may be derived due to changes in the future environment, different data aggregation standards, and et cetera. Today's announcement and presentation will be conducted by our CFO, Mr. Choi Jaeyou ng.
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Good morning and good evening. My name is Choi Jaeyou ng, and I am from DoubleUGames. We would like to thank all of you for attending the 2023 Q1 earnings announcement conference call of DoubleUGames. Today, we will proceed to the meeting in order of earnings summary, revenue analysis, cost analysis, business update, and shareholder return policy, as is shown on page three. After the earnings presentation, we will have a Q&A session.
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Please let me share the Q1 earning summaries as shown on page four. The revenue on a consolidated basis in 2023 Q1 was KRW 145.3 billion, down 3.1% year-on-year. The operating income was KRW 46.1 billion with a margin of 31.7%, up 8.2% year-on-year. EBITDA was KRW 48.0 billion with a margin of 33%, up 1.9% year-on-year. In particular, the net income was normalized from Q1 and recorded KRW 49.8 billion, which was a 50% increase year-on-year. Despite a slight decrease in sales, thanks to the improved efficiency of marketing cost and stabilization of other expenses, operating income, EBITDA, and net profit all increased year-on-year, improving profitability.
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Please let me share the Q1 revenue analysis on page five. The revenue on a consolidated basis in 2023 Q1 was KRW 145.3 billion, down 3.1% year-on-year. By platform, web recorded KRW 27.6 billion and mobile recorded KRW 117.7 billion. Mobile accounted for 81% out of total sales. The franchise games, the DoubleDown Casino and DoubleU Casino accounted for 96% out of total sales. The sales by game recorded KRW 96.1 billion with the DoubleDown Casino, down 3.3% year-on-year. DoubleU Casino recorded KRW 44.2 billion, down 0.2% year-on-year. Although there was a slight decrease due to the exchange rate effects and seasonality, App performance improvement and marketing optimization, as well as the introduction of new games and SuprNation are expected to push up the sales after Q2.
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Now, please let me share the Q1 cost analysis on page six. The platform cost was KRW 41.6 billion, which is a variable cost that pays 30% of sales to platform companies, such as Google and Apple. The marketing cost was KRW 28.2 billion, down 11.1% year-on-year, and 19% of sales. Most of the marketing cost was investment to attract new users of DoubleDown Casino and DoubleU Casino, the franchise games. We improved the cost efficiency by optimizing marketing channels. Salary and benefit was KRW 18.2 billion, up 2% year-on-year. Stabilization of salary and benefit continues, and it is expected that there will not be any major changes in the future. The total number of employees on a consolidated basis is approximately 570, consisting of 320 people from DoubleUGames and 250 people from DoubleDown Interactive.
Royalty was KRW 2.6 billion, which was 1.8% out of sales. It is a commission for the use of IGT's Slot IP. D&A was KRW 1.9 billion, down 5% year-on-year. Most of D&A was amortization cost incurred due to the accounting management of office rental release. Most of operating income and EBITDA increased year-on-year, thanks to the improved efficiency of marketing cost and sound management of operating cost.
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Next is the business update on page seven. Currently, our business consists of four big pillars or four big segments. First, the Social Casino segment is working hard to continuously provide stable services for the main games. We plan to expand our market share by launching a new Social Casino game, Fantastic Slots in Q3. Second, for the Casual Game genre, we are developing a Casual Bingo game as a new project. This game has strength in various casual content, such as housing meta features compared to other existing bingo games. In addition, we are continuously searching for M&A opportunities for games and game related service companies by utilizing our cash holdings of KRW 500 billion. Third, for the skill game genre, we obtained approval to use Braintree, which is PayPal's online payment service in early May, fulfilling the payment stability requirements for our services.
We are preparing for a soft launch in the European market, centered in the U.K., as well as a global launch centered in the U.S. We will continue to share the progress. Last but not least, for the iGaming B2B business, we have completed certification for a total of 38 slots so far. Currently, certification procedures for 18 additional slot content are in progress. We are working and discussing with iGaming slot content providers. For the iGaming B2C business, the change of control of SuprNation is currently under review by the gambling committee of each country. As soon as the review is completed, we will complete the closing, and as the review is currently in progress, we will share the details when it is expected to be completed.
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Next, please let me share the social casino business update on page eight. We are continuously updating various meta feature content, which is in the spotlight in the social casino market. New meta features Dream Town and DoubleU Pass were launched at the end of March, and we aim for a rebound in sales in Q2 based on those launches. Dream Town is a housing content that users can customize and build their own town with goods obtained through slot play. DoubleU Pass has been introduced to DoubleU Casino for the first time, and it is in service as a part of the most popular BM, the Season Pass. In addition, the development of a new social casino game, Fantastic Slots, is now becoming visible to some extent. It is a slot game with meta feature-oriented casual elements as the core.
We are developing a new concept that is differentiated from existing social casino game performance.
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Please let me explain more about the skill game market, which we are about to enter in the U.S. and the U.K. The accumulated number of downloads for skill games in the U.S. totaled over 100 million and 35 million in 2022. The numbers indicate that around two out of 10 adults in the U.S. are enjoying the games. As P2E through competitive mode has become possible in the existing casual games in the U.S., it is judged that this genre is gaining high popularity among users. According to the public data released by Skillz, which is a listed company in the U.S., 20% of users are paid users, while 80% of users are free trial users. By utilizing our experiences in providing services for a cumulative 5 million downloads, we plan to enter the skill game market with a differentiated competitiveness, which are convenience, reliability, and game persistence.
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Next, please let me explain about the shareholder return policy on page 10. The process of share retirement was completed by the end of April. The number of shares retired was approximately 180,000, totaling KRW 7.1 billion. We will actively review the free issue of new shares and the use of our own shares. Also, following our long-term dividend policy, we will make efforts to expand the dividend resources as the company's profits increase.
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This is the end of my presentation on 2023 Q1 earning summary, which was explained up to page nine. Now we will proceed with the Q&A session.
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There are three questions. First of all, if there is any change in the forecast for the Q2 performance and this year's guidance. Second, any forecast for the new business. Thirdly, in the last quarter it was announced that you also have a plan for the free release of the shares. Any change in this plan that was announced in the last quarter?
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Regarding the first question, there will not be a big or major change in our forecast for the Q2 performance. We are currently benchmarking those apps which are outperforming in the market. By promoting the improved efficiency of marketing costs and improving the meta features, we will keep with our forecast for the coming quarter.
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Regarding our perspective about the new project or new businesses that are coming soon. First of all, about Skillz that we presented during our presentation, there was a slight delay as we were waiting for the approval regarding this PayPal payment platform. However, we can say that we have mostly fulfilled the requirements up to date, and we will also try to include this in the consolidated basis performance together with our global launching. Regarding the iGaming, as presented during my presentation, we are currently in the process of waiting for the approval from the gambling committee of each country. There are some things that are a little bit challenging to forecast exactly. However, as soon as we know the result, we will immediately share with you.
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Regarding the third question that we may consider providing the free shares if we do not meet the initial offering price, that plan has not changed.
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As there is no more question, we will officially close our presentation on the Q1 2023 earning presentation. If you have any further questions, please feel free to contact our IR team, and we will do our best to provide the information that you look for. Thank you very much.