Kakao Games Turns to Operating Loss of 5.4 Billion Won in Q3

Revenue Down 22% Year-on-Year Due to Weak Mobile Segment
"Restructuring of Non-Core Businesses and Nine New Titles to Be Released Next Year"

Kakao Games posted a loss in the third quarter, turning to the red due to sluggish performance in its mobile gaming segment.

Provided by Kakao Games

On November 5, Kakao Games announced in a regulatory filing that its consolidated operating loss for the third quarter was 5.4 billion won, a reversal from an operating profit of 7.7 billion won in the same period last year. Revenue was 127.5 billion won, down 21.7% year-on-year.

By segment, mobile game revenue was 84.8 billion won, a decrease of 34.1% compared to the same period last year. PC game revenue increased by 24.7% to 42.7 billion won, which the company attributed to the success of collaborative content in "Battlegrounds," which it publishes, and the fourth anniversary update for "Odin: Valhalla Rising."

Operating expenses in the third quarter amounted to 132.9 billion won, down 14.3% from a year earlier. Commission fees and personnel expenses decreased by 19.6% (66.2 billion won) and 5.5% (36.7 billion won), respectively.

Kakao Games emphasized that it has recently restructured its non-core businesses to strengthen its core "game" business and secure financial soundness. Based on this, the company plans to focus on developing diverse game content and to sequentially introduce an expanded lineup across all platforms, genres, and regions.

Next year, the company will launch a total of nine new titles developed and published by its subsidiaries. Specifically, upcoming releases include the casual game "SM Game Station" (tentative title), which utilizes idol intellectual property, large-scale MMORPGs "Project Q" and "Project OQ," and the subculture RPG "Project C." In addition, Kakao Games is focusing its capabilities on differentiated content such as "God Save Birmingham," set in a medieval zombie world, as well as the open-world PC and console blockbusters "ArcheAge Chronicle" and "Chrono Odyssey."

Han Sangwoo, CEO of Kakao Games, stated, "We are laying the groundwork to secure growth momentum that will enable us to strengthen our global competitiveness," adding, "Based on the structural improvements we have made so far, we will do our best to ensure our core business gains traction."

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