Kakao Games Q2 Operating Profit Down 89% to 2.8 Billion Won... "At Stage of Securing Business Diversification Momentum"

Sales Decreased by 13% to 235.6 Billion KRW

Kakao Games announced on the 7th that its consolidated sales for the second quarter of this year amounted to 235.6 billion KRW, a 13% decrease compared to the same period last year. Operating profit fell by 89% to 2.8 billion KRW.

Mobile games recorded sales of 134.5 billion KRW, down approximately 22% from the same period last year. PC online game sales increased by 37% to 16.3 billion KRW.

Other (non-game sector) sales, including golf and sports leisure communication businesses, were recorded at 84.8 billion KRW, down about 3% compared to the same period last year.

Kakao Games plans to build a solid lineup by sequentially releasing new titles not only for mobile games but also for PC online and console platforms through its own and subsidiary development studios.

On the 14th, the new RTS game 'Stormgate' will begin early access on Steam for domestic users. Additionally, the sequel to the PC hack-and-slash action RPG 'Path of Exile,' titled 'Path of Exile 2,' will be introduced in early access form to the domestic market in the fourth quarter of this year.

Furthermore, at 'Gamescom 2024,' the world's largest game show held this month in Cologne, Germany, the global development subsidiary Ocean Drive Studio will showcase three new premium indie games for console platforms: 'Lost Eidolons: Witch of Hypocrisy,' 'Section 13,' and 'God Save Birmingham.'

Starting next year, Kakao Games plans to secure long-term momentum by visualizing the releases of titles such as 'Chrono Odyssey,' 'ArcheAge 2,' and 'The Youngest Son of a Swordmaster (working title).'

Han Sang-woo, CEO of Kakao Games, stated, "We are at a stage of securing momentum for sustainable growth and global business diversification, and we will continue efforts to improve cost efficiency and financial stability in the second half of the year." He added, "In particular, we will focus on delivering well-made works ranging from indie games to major titles based on our gaming business."