Kakao Games reported disappointing results for the second quarter, following a weak first quarter. Co-CEOs Lee Si-woo and Kim Tae-hwan stated that launching new titles in the second half of the year is their priority to boost revenue in Q4 and achieve profitability in Q1 2027.
On August 5, Kakao Games announced that its consolidated revenue for Q2 was 75 billion won, with an operating loss of 23 billion won. This represents a decrease of about 35% compared to the same period last year, continuing the trend of losses. However, the loss narrowed by approximately 10% compared to the previous quarter.
The company anticipates that revenue will remain low through Q3 but plans to launch most of its major new titles from Q4 through Q1 2027 to turn the tide. In October, it will launch the 2.5D MMORPG 'World of Goblins.' The online action RPG 'ArcheAge Chronicle' and the strategic adventure RPG 'Dungeon Rise' are also set for release by the end of the year.
In Q1 2027, Kakao Games will sequentially release three highly anticipated titles, including 'Odin Q,' 'God Save Birmingham,' and 'Chrono Odyssey.'
Notably, 'Odin Q' is a sequel in the 'Odin' series, which shares a universe with Kakao Games' flagship title 'Odin: Valhalla Rising' and is considered a key intellectual property for the company.
Lee Si-woo explained, "While 'Odin Q' is a title that inherits the Odin IP, the gameplay and target audience are clearly differentiated. The combat styles and player demographics are very different, so we expect these two games based on the Odin IP to complement each other."
Kakao Games plans to prioritize acquiring developers with proven game quality and key metrics as part of its M&A strategy, gradually increasing investment from hundreds of millions of won. Kim Tae-hwan stated, "We will also focus on improving profitability by restructuring non-core and inefficient businesses and expanding global co-development and outsourcing to enhance our cost structure."
Kim emphasized that there are no plans for corporate mergers, such as a merger with Line Games, but noted that collaboration within the scope of general partnerships is possible.
Kakao Games aims to enhance shareholder value by securing the capacity for share buybacks through a reduction in capital reserves, along with a planned 500 million won share buyback by the new management.
* This article has been translated by AI.
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