Kakao Games Reports 495.5 Billion KRW Revenue Last Year... Largest Since Inception (Comprehensive)

Photo by Namgung Hoon (left), Jo Gye-hyun, Co-CEOs of Kakao Games

[Asia Economy Reporter Buaeri] Kakao Games achieved its highest performance since its establishment, with sales approaching 500 billion KRW last year.

Record-Breaking Performance Achieved

Kakao Games announced on the 8th that it posted annual sales of 495.5 billion KRW and an operating profit of 66.6 billion KRW last year. Sales increased by 27% compared to the previous year, and operating profit grew by 90%. Both annual sales and operating profit reached all-time highs.

In the fourth quarter of last year, sales were 142 billion KRW and operating profit was 16.6 billion KRW, representing increases of 34% and 69% respectively compared to the previous year.

Kakao Games explained, "Stable sales from live games combined with the success of new releases led to balanced growth in both PC online and mobile games, resulting in the highest sales and operating profit since the company's founding."

In the PC online game sector, ‘Elion’, released in December last year, drove growth by achieving sales of 10 billion KRW, contributing to total sales of 183.8 billion KRW.

Kakao Games noted that ‘Elion’, which introduced a paid model rarely seen in the gaming industry recently, exceeded expectations. Kim Ki-hong, Chief Financial Officer (CFO) of Kakao Games, said during a conference call, "We secured loyal users and confirmed the possibility of long-term sustainability through a stable cycle," adding, "We will focus on increasing domestic performance and achieving long-term results through a global launch in the second half of the year."

The mobile game sector grew 37% year-on-year to 249 billion KRW, driven by the success of ‘Guardian Tales’, released in July last year.

Subsidiary Kakao VX, which operates in the golf business, also contributed to strong performance. Other sales, consisting of Kakao VX and new business revenues, increased by 33% year-on-year to 62.8 billion KRW, achieving record-high results thanks to the expansion of golf demand.

Continuous Release of New Titles... Ongoing Investment in Game Companies

Kakao Games announced that it is preparing more than 10 new titles this year.

Kakao Games plans to expand titles such as ‘Elion’ and ‘Dalbitjogsak’ to North America, Europe, Japan, and Southeast Asia this year, and continue growth by releasing MMORPG ‘Odin’, as well as ‘Goddess Order’, ‘World Flipper’, ‘Soul Artifact’ (tentative title), and ‘Terafire’ (tentative title). ‘Odin’ is expected to be released domestically in the second quarter.

Regarding ‘Eternal Return: Black Survival’, a PC game by Neptune, in which Kakao Games became the largest shareholder by investing 193.5 billion KRW, the company also revealed plans to focus on growing the Eternal Return intellectual property (IP) into a global IP. Jo Gye-hyun, co-CEO of Kakao Games, said, "Eternal Return is scheduled for official release in the third quarter," adding, "From then on, we will introduce additional business models (BM) and expand the business."

Kakao Games has also set a goal to accelerate new business sectors such as screen golf and smart home training by integrating advanced technologies like artificial intelligence (AI), location-based services (LBS), and virtual reality (VR) into its core businesses.

Additionally, the company plans to secure new growth engines through strategic investments in promising companies. Namgung Hoon, CEO of Kakao Games, stated, "The funds raised through listing will be continuously invested in game developers," adding, "We are also considering investments in platform companies that can be integrated with game content."

This content was produced with the assistance of AI translation services.