Kakao Games Posts Loss for Third Consecutive Quarter... "Aiming for Global Market in Second Half"

Operating Loss of 8.6 Billion KRW in Q2... Revenue Down 24.22%
"Strengthening IP Competitiveness and Launching 'Goddess Order' Next Month"

Kakao Games recorded a net loss for the third consecutive quarter, impacted by the lack of hit new releases and simultaneous declines in both PC and mobile game sales.

On August 6, Kakao Games announced in a regulatory filing that, on a consolidated basis, its operating loss for the second quarter of this year was 8.6 billion KRW, turning to a loss compared to an operating profit of 1.1 billion KRW in the same period last year, according to provisional figures. Kakao Games had already posted an operating loss of 3.9 billion KRW in the fourth quarter of last year, marking a shift to losses, and followed this with an operating loss of 12.4 billion KRW in the first quarter of this year.

Revenue stood at 115.8 billion KRW, down 24.22% year-on-year, while net loss widened to 33.6 billion KRW. Mobile game revenue was approximately 101 billion KRW, a 26% decrease from the same period last year, and PC game revenue also declined by 9.2% to 14.8 billion KRW over the same period.

Operating expenses were 124.4 billion KRW, an 18% decrease from the same period last year. In particular, commission fees (57.5 billion KRW) shrank by 31.9% due to lower sales, and labor costs also declined by 2% to 37 billion KRW.

Kakao Games plans to continue targeting the global market in the second half of the year. Next month, the company will launch the mobile action role-playing game (RPG) "Goddess Order" globally. "God Save Birmingham," developed by its subsidiary Ocean Drive Studio, was exhibited at Gamescom, the world's largest game show held in Germany.

In addition, Kakao Games aims to strengthen its position as a global gaming company by focusing on the development of major new titles across multiple platforms and genres, including "Chrono Odyssey," "ArcheAge Chronicle," and "Project Q."

Earlier this year, the company secured intellectual property (IP) rights by signing publishing agreements for several titles: the collection-based nurturing simulation game "Project C," the 2.5D massively multiplayer online role-playing game (MMORPG) "Project OQ," and the strategy adventure RPG "Dungeon Arise."

Han Sangwoo, CEO of Kakao Games, stated, "In order to respond swiftly to the global market environment, we are seeking out leading IPs to secure future growth engines," adding, "We will focus on strengthening our IP competitiveness and developing new titles across multiple genres to pursue sustainable growth."

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