Kakao Games Q1 Revenue 266.3 Billion KRW... 105% Increase YoY

[Asia Economy Reporter Seungjin Lee] Kakao Games' mobile game 'Odin' popularity led to a doubling of its first-quarter sales compared to the previous year.

Kakao Games announced on the 3rd that its sales in the first quarter of 2022 were approximately 266.3 billion KRW, and operating profit was about 42.1 billion KRW, representing increases of 105% and 170% respectively compared to the same period last year.

Kakao Games explained that in the first quarter of 2022, stabilization of existing mobile and PC online game sales, efficient cost execution, and internalization of development capabilities were achieved, and the strong performance of other non-game sales significantly impacted overall revenue.

The mobile game sector achieved sales of about 177.2 billion KRW, a 195% increase year-on-year, based on the stabilization of domestic sales of Odin: Valhalla Rising and its launch in Taiwan. Despite being a new IP with low recognition, Odin, which made its global debut, generated approximately 50 billion KRW in sales within one month after its late March release in Taiwan.

The PC online game sector recorded sales of about 14.6 billion KRW, down approximately 71% year-on-year due to the downward stabilization of existing titles.

Other sales reached about 74.5 billion KRW, a 294% increase year-on-year, setting a record high thanks to the continued growth of Kakao VX and stable sales from Senatechnology.

Kakao Games plans to sequentially release major new titles alongside the global expansion of its leading titles. Additionally, it aims to drive further growth through securing global IPs and blockchain platform business.

First, alongside the domestic release of Uma Musume Pretty Derby, various genre games such as the collectible RPG EverSoul, MMORPGs Ares: Rise of Guardians, and Distera, expected to perform well in the global market in the second half of the year, are being prepared for sequential release.

Furthermore, through the Bora Network, about ten games including Metabora's Buddy Shot, XL Games' ArchiWorld, and Krafton's subsidiary RisingWings' Compete are scheduled for release within the year.

A Kakao Games representative stated, "We will strengthen our lineup by investing in shares of promising global studios and expand our global capabilities encompassing not only games but also non-game sectors," adding, "through cooperation with domestic and international governance councils, we plan to introduce various content services such as 'games,' 'sports,' and 'entertainment,' expanding the Bora platform ecosystem environment to overseas markets."