Kakao Games Reports 12.3 Billion KRW Operating Profit in 1Q, Up 8.1% YoY

Kakao Games announced on the 8th that it recorded consolidated sales of 246.3 billion KRW and an operating profit of 12.3 billion KRW in the first quarter of this year. Sales decreased by 1.2% compared to the same period last year, while operating profit increased by 8.1%.

Game business sales increased by 5.3% compared to the same period last year. Mobile games achieved sales of 161.3 billion KRW, up 4.8% year-on-year. PC online games recorded sales of 15.6 billion KRW, an increase of about 10.5% compared to the same period last year.

In the first quarter, solid performance was partly reflected by the content renewal effect of the flagship live title Odin: Valhalla Rising (Odin) and the domestic and overseas launch results of the new title R.O.M. Additionally, content updates for the PC online game Kakao Battlegrounds had a positive impact.

Other (non-game sector) sales, including golf and sports leisure communication businesses, recorded about 69.4 billion KRW, down approximately 14.5% year-on-year due to seasonal off-season and economic downturn effects.

Starting from the second quarter, Kakao Games will accelerate its 'Beyond Korea' strategy by expanding the service regions of major game titles. The anime-style collection RPG EverSoul will be launched in the Japanese market on the 29th, and the MMORPG ArcheAge War will be released in nine countries including Taiwan, Hong Kong, and Macau during the second quarter, expanding its global footprint.

Furthermore, through subsidiaries and investee companies, Kakao Games plans to sequentially introduce new titles based on diversified platforms and genres, building mid- to long-term momentum to strengthen global competitiveness. Titles planned for release within the year include the roguelike casual Project V (tentative), action RPG Gadis Order, subculture nurturing simulation Project C (tentative), hack and slash Path of Exile 2, twin-stick shooter Blackout Protocol, SRPG Lost Idols: Witch of Hypocrisy, and idol nurturing game SM GAME STATION (tentative).

Kakao Games is also focusing on developing new PC online and console platform titles to secure global blockbuster IPs. XL Games and Ocean Drive Studio are respectively accelerating development of ArcheAge 2 and Geomsoolmyungga Maknaeadeul (tentative), while Chrono Studio is pushing forward with Chrono Odyssey.

Han Sang-woo, CEO of Kakao Games, stated, “Considering the increasingly competitive gaming market environment, we plan to focus on securing differentiated global PC and console IPs to continuously strengthen our competitiveness. We will do our best to enhance user satisfaction both domestically and internationally by providing higher-quality content and services in the global market.”