Kakao Games Reports Operating Profit of 74.5 Billion KRW Last Year, Down 58% YoY

Kakao Games announced on the 8th that it recorded consolidated sales of 1.0241 trillion KRW and an operating profit of 74.5 billion KRW last year. These figures represent decreases of 11% and 58%, respectively, compared to the same period last year.

In the fourth quarter, sales increased by about 1% year-on-year to 239.2 billion KRW, and operating profit rose by 57% to 14.1 billion KRW.

The annual performance achieved over 1 trillion KRW in sales for the third consecutive year, driven by new releases such as ArchAge War, Ares: Rise of Guardians, and Eversoul, as well as stable results from live games like Odin: Valhalla Rising and Uma Musume Pretty Derby.

In the fourth quarter, content updates in live games such as Odin: Valhalla Rising, Uma Musume Pretty Derby, and Path of Exile, along with efforts to optimize operating expenses, contributed to the rebound in performance compared to the same period last year.

Kakao Games plans to secure sustainable growth momentum this year by strengthening live services, expanding service regions for key games, and focusing on developing new titles targeting the global market. The company will concentrate on showcasing games across various platforms and genres, including PC online, mobile, and console, in collaboration with subsidiaries such as Lionheart Studio and XL Games, as well as leading domestic and international partners.

For mobile games, the company plans to launch major live games overseas, including ArchAge War in nine countries such as Taiwan, Japan, and Southeast Asia; Eversoul in Japan; and Odin: Valhalla Rising in North America and Europe. Additionally, new titles such as the cross-platform MMORPG R.O.M, roguelike casual Project V (working title), action RPG Gadis Order, and subculture simulation Project C (working title) will be released sequentially.

For PC online and console games, Kakao Games is preparing the SRPG Lost Idols: Witch of Hypocrisy, the hack-and-slash Path of Exile 2 (POE2), and an action RPG based on a web novel IP, The Youngest Son of a Swordmaster (working title).

Moreover, as part of a blockchain onboarding project, the company plans to introduce content such as a sports simulation game utilizing global IP and casual nurturing games.

A Kakao Games representative stated, "Despite the challenging internal and external environment this year, we will strive not only for ‘efficient operations’ but also for ‘efforts to increase productivity’ to sustain growth. We will discover competitive content that meets the high standards of global users to establish mid- to long-term momentum."