Kakao Games Reports Q3 Operating Profit of 43.7 Billion KRW, Down 46% YoY

"Umamusume Controversy" Causes Turmoil, Some Impact on Sales and Operating Profit
Golf-Related Business and Other Non-Gaming Sales as 'New Revenue Sources', Down 13% QoQ, Up 156% YoY

[Asia Economy Reporter Seungjin Lee] Kakao Games, which faced turmoil over the 'Uma Musume operation controversy,' saw its third-quarter operating profit fall to half the level of the same period last year.

Kakao Games announced on the 2nd that its third-quarter 2022 revenue was approximately 306.9 billion KRW, with an operating profit of 43.7 billion KRW. This represents a decrease of 34% and 46%, respectively, compared to the same period last year. Mobile game revenue was 197 billion KRW, down 8% from the previous quarter and 52% from the same period last year. PC online game revenue recorded 13.3 billion KRW, down 11% from the previous quarter and 26% from the same period last year.

Other (non-game) revenue, including Kakao VX, which is responsible for golf-related businesses, was 96.6 billion KRW, down 13% from the previous quarter but up 156% compared to the same period last year, raising expectations for future growth in the non-game sector.

Kakao Games explained that while game revenues from titles such as 'Odin: Valhalla Rising' (hereafter 'Odin') and 'Uma Musume Pretty Derby' were stable in the third quarter, they could not avoid a downward trend, and the negative base effect from the non-game sector in the previous quarter was reflected in the overall revenue.

In the fourth quarter, Kakao Games plans to conduct a large-scale update including the major battle content 'Siege War' for 'Odin' and aims for a rebound through dynamic operations in the Taiwanese market. Additionally, they plan to target users with popular character updates and continuous events for 'Uma Musume Pretty Derby.'

New releases will also be accelerated. The PC online survival game 'Distera' will be released in early access starting on the 24th, and mobile games such as the collection RPG 'Eversoul,' the massively multiplayer online role-playing game (MMORPG) 'ArcheAge War,' the MMORPG 'Ares: Live of Guardians,' and the action RPG 'Guardians Order' will be sequentially introduced to the market. They also plan to expand global services for blockchain games like 'Bora Battle' and for 'Odin' in Japan and North America.

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