Kakao Games Reports Q3 Operating Profit of 5.7 Billion KRW... "Reflects Subsidiary's Discontinued Operations" (Update)

Sales of 193.9 billion KRW, Operating Profit of 5.7 billion KRW

Kakao Games announced on the 6th that it recorded consolidated sales of 193.9 billion KRW and an operating profit of 5.7 billion KRW for the third quarter of this year. Sales decreased by 14.3% compared to the same period last year, and operating profit fell by 80.1%.

Kakao Games explained, "From this earnings report onward, we are in a restructuring phase to 'focus on core businesses.' Factors such as the sale of Senatechnology shares within other business segments and the withdrawal from some Kakao VX operations were reflected as discontinued operations in the disclosure."

Mobile game sales amounted to 126.6 billion KRW, down 31.1% year-on-year, while PC online game sales increased by 196.3% year-on-year to approximately 34.2 billion KRW.

Other sales (non-gaming sector), including golf-related businesses, recorded approximately 33.1 billion KRW, up about 7.1% compared to the same period last year.

In the third quarter, factors affecting performance included the collaboration update effect of the PC online game "Kakao Battleground," steady results from major mobile titles such as "Odin: Valhalla Rising" and "ArcheAge War," and the absence of new releases.

Kakao Games is focusing on enhancing the foundation of its core game business by improving its business structure and capabilities through a strategy of expanding from mobile to global multi-platforms including PC online and console, as well as diversifying genres.

The PC hack-and-slash action RPG "Path of Exile 2," which has proven its popularity with a masterpiece IP in the global market, is scheduled to be released in early access form on December 7, offering domestic users a unique experience.

Starting next year, the release of global blockbusters considering various platforms such as mobile, PC online, and console is expected to become more visible. New titles based on expanded platforms, including "Chrono Odyssey," "ArcheAge Chronicle," and "Project Q (tentative)," are emerging in collaboration with subsidiaries and partners, raising expectations.

Han Sang-woo, CEO of Kakao Games, said, "We are reorganizing the entire business to secure core competencies and future growth engines," adding, "We will focus on developing major PC online and console titles and further strengthen our global competitiveness in our core game business."

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