Kakao Games Continues Losses With 12.44 Billion Won Operating Deficit in Q1

Revenue at 122.9 Billion Won, Down 31% from Last Year’s Fourth Quarter
Sequential Release of New Titles from the Second Quarter to Drive Performance Recovery

Kakao Games announced on the 7th that it recorded a consolidated operating loss of 12.44 billion won in the first quarter of this year. This marks a continued deficit following an operating loss of 3.9 billion won in the fourth quarter of last year. Compared to the same period last year, when the company posted an operating profit of 14.3 billion won, it has swung to a loss.

Revenue for the first quarter of this year was 122.9 billion won, down 31% from 178.3 billion won in the same period last year. Compared to the fourth quarter of last year, when revenue was 133.2 billion won, sales declined by about 8%.

By game type, mobile game revenue was 96.1 billion won, a 41% decrease from the same period last year. During the same period, PC online game revenue was 26.8 billion won, a 72% increase from the previous year.

The company explained that the earnings deterioration was due to a lack of new game releases. In the first quarter of this year, Kakao Games began restructuring its core game business to strengthen competitiveness under a strategy of "selection and concentration." Starting in the second quarter, the company plans to target both domestic and international markets by unveiling new titles across various platforms and genres. On April 29, Kakao Games launched the MMORPG "Odin: Valhalla Rising" in the global market. The console-based online action RPG "Chrono Odyssey" will be introduced in the second quarter through a closed beta test (CBT).

In the second half of this year, the company will sequentially release titles such as "Section 13," "Goddess Order," "God Save Birmingham," and "Project Q." Kakao Games also plans to launch subculture simulation games and games utilizing idol intellectual property (IP) through its subsidiaries within the year.

Han Sangwoo, CEO of Kakao Games, stated, "We are restructuring our business around core operations and focusing on game development that considers a variety of platforms and genres. We will do our utmost to solidify our fundamentals and secure the competitiveness needed to achieve the next level of growth."