Kakao Games Reports Q3 Revenue of 264.7 Billion KRW and Operating Profit of 22.6 Billion KRW

Kakao Games' performance declined due to the economic downturn in the non-gaming sector, despite the impact of new game releases.

Kakao Games announced on the 8th that its third-quarter revenue was 264.7 billion KRW, down 14% from the same period last year, and operating profit was 22.6 billion KRW, down 48% from the same period last year.

Mobile games achieved sales of 183.8 billion KRW, down 7% from the same period last year. PC online games recorded sales of 11.5 billion KRW, down 13% from the same period last year. Other (non-gaming sector) sales, including golf and sports leisure communication businesses, recorded approximately 69.4 billion KRW, down about 28% from the same period last year.

Third-quarter game sector sales increased by about 6% compared to the previous quarter, reflecting the performance of self-developed IPs ‘Odin: Valhalla Rising’ (hereinafter ‘Odin’), ‘ArcheAge War’, and the newly published MMORPG ‘Ares: Rise of Guardians’ (hereinafter ‘Ares’). On the other hand, the non-gaming sector was affected by the economic downturn, which was a major factor in the decline in performance.

Kakao Games plans to focus on preparing new games as well as strengthening live game service capabilities. In the second half of the year, it will add new content and hold year-end events for three major MMORPGs: ‘Odin’, ‘ArcheAge War’, and ‘Ares’, and will release the 1.5th anniversary update for the subculture game ‘Uma Musume Pretty Derby’.

It is also focusing on preparing new titles targeting the global market. It plans to unveil the action RPG ‘Godis Order’, set in a medieval fantasy world, featuring pixel graphics and maximized action to deliver a console game feel on mobile, and the cross-platform MMORPG ‘ROM (R.O.M)’, developed by Red Lab Games, aiming to implement a battlefield where users worldwide can participate.

Additionally, it will expand service regions by sequentially launching ‘ArcheAge War’ in Japan and Greater China (Taiwan, Hong Kong, Macau, etc.), ‘Odin’ in North America and Europe, and ‘Eversoul’ in Japan.

Subsidiary Lionheart Studio is preparing the roguelike casual RPG new title ‘Project V (tentative)’, and XL Games is preparing the AAA-level new title ‘ArcheAge 2’ based on console and PC online platforms. ‘ArcheAge 2’ aims for release next year and will focus on completeness by conducting phased tests of the core combat gameplay with selected users in Western regions.

Jo Gye-hyun, CEO of Kakao Games, stated, “We will enhance the characteristics of each live game we service, such as MMORPGs and subculture games, to expand momentum. At the same time, we will prioritize increasing the global success potential of the new games we are preparing and secure mid- to long-term growth drivers.”