Kakao Games 1Q Operating Profit 15.6 Billion KRW... 23% Increase YoY (Comprehensive)

Namgoong Hoon, CEO of Kakao Games (left), Jo Gye-hyun (right), CEO.

[Asia Economy Reporter Buaeri] Kakao Games announced on the 4th that it recorded sales of 130.1 billion KRW and operating profit of 15.6 billion KRW in the first quarter.

Sales increased by 35% and operating profit increased by 23% compared to the previous year.

By segment, the PC online game division in the first quarter posted sales of 51.1 billion KRW due to the stabilization of the service of the new title 'Elion' released last year. This is a 19% increase compared to the previous year. Mobile games recorded sales of 60.1 billion KRW, a 41% increase year-on-year, based on steady sales from live games.

Other sales, consisting of subsidiary Kakao VX and new business sales, recorded 18.9 billion KRW due to increased sales of screen golf and golf equipment utilizing Kakao Friends intellectual property (IP). This is a 77% increase compared to the previous year.

As of the end of the first quarter, Kakao Games' consolidated workforce was 1,686, with 396 employees at headquarters. Among them, 920 are development personnel, and 150 of them are developers at headquarters, Kakao Games stated. Kim Ki-hong, Chief Financial Officer (CFO), said, "With an increase in new titles and expansion of new businesses this year, we plan to conduct additional hiring at around 10%."

The company plans to accelerate its domestic and overseas game market strategies from the second quarter. Starting with 'Odin,' it will sequentially release 'World Flipper,' 'Eternal Return: Black Survival,' 'Soul Artifact (tentative title),' and 'Goddess Order' in the domestic market this year. Jo Gye-hyun, co-CEO of Kakao Games, said, "'Odin' reached 1.8 million pre-registrations in five days," adding, "We are preparing for release targeting the end of the second quarter."

Additionally, a mobile game under development by Kakao Games' subsidiary XL Games is targeted for release in 2022, and a new PC game based on the 'ArcheAge' IP is planned for release in 2024.

A Kakao Games official stated, "We will strengthen our profit base by actively securing excellent IP and making strategic investments," adding, "Furthermore, through affiliated companies, we plan to demonstrate business capabilities in various areas to build a mid- to long-term growth foundation."

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