According to a filing with the Financial Supervisory Service (FSS) Wednesday, the company posted revenue of 75.0 billion won ($54 million), down 35.2 percent from a year earlier, while its operating loss narrowed to 23.0 billion won from 25.5 billion won in the previous quarter. The stock was trading 4.7 percent lower at 7,950 won in the morning trading.
Revenue fell as sales from existing games continued to decline and no major new titles were released during the quarter. Although the company remained in the red, ongoing restructuring efforts helped reduce its operating loss from the previous quarter.
Mobile game sales totaled 52.7 billion won, while PC online game revenue rose 51 percent from a year earlier to 22.3 billion won, serving as a key support for the quarter.
Meanwhile, net loss widened to 57.0 billion won from 39.5 billion won, and pretax loss increased to 64.5 billion won from 45.8 billion won.
Looking ahead, the company plans to launch a series of major new titles from the third quarter as it seeks to revive earnings.
It will open pre-registration later this month for its Korean fantasy multiplayer online role-playing game (MMORPG) "Dokkaebi's World," inspired by Korea's traditional folklore and mythical goblins known as dokkaebi, ahead of its planned launch in October.
The upcoming lineup also includes adventure game "Dungeon Arise" and zombie survival game "God Save Birmingham," both scheduled for release later this year. "Odin Q: Valkyries Call," the latest game in the Odin series, is planned for early next year.
The company has also secured global publishing rights for "ArcheAge S: Strait of Freedom" and "Guardian Maiden," a collectible action game, as it expands its future lineup. It is also developing new games based on popular Korean webtoons and comics with The Grimm Entertainment, a South Korean webtoon production company.
Separately, Kakao Games is stepping up shareholder returns. Its plans include cancelling 500,000 treasury shares, introducing restricted stock units (RSUs), transferring part of its capital reserve to retained earnings, and encouraging executives to increase their shareholdings.
"We will focus on delivering high-quality games with strong global potential while strengthening the foundation for sustainable growth," Chief Executive Officer Lee Si-woo said. "We will continue to roll out new titles while maintaining transparent communication with users and shareholders."
AJP Takeaways
— Kakao Games reported second-quarter 2026 revenue of 75.0 billion won ($54.3 million), down 35.2% from a year earlier.
— Kakao Games’ second-quarter 2026 operating loss narrowed to 23.0 billion won from 25.5 billion won in the first quarter of 2026.
— Kakao Games plans to begin pre-registration for the Korean fantasy MMORPG Dokkaebi’s World in August 2026 and target a full launch in October 2026.
— The company plans to release Dungeon Arise and God Save Birmingham later in 2026, followed by Odin Q: Valkyries Call in early 2027.
— Shareholder-return measures include cancelling 500,000 treasury shares, introducing restricted stock units, reallocating capital reserves to retained earnings and increasing executive share ownership.
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