Dev Sisters, the developer of the 'Cookie Run' series, has reported a shift to an operating loss in the second quarter due to decreased revenue from the restructuring of its live games. The company plans to improve its performance starting in the third quarter through cost efficiency, new game releases, and global expansion of existing titles.
On August 7, Dev Sisters announced that it recorded an operating loss of 16 billion won for the second quarter, marking a transition to a loss compared to the same period last year. Revenue was reported at 52.7 billion won, a decrease of 42.7% year-on-year.
Regionally, domestic revenue fell to 14.9 billion won, down 27.4% from the previous year, while overseas revenue dropped to 31.6 billion won, a decline of 53.7%. The larger decrease in overseas revenue compared to domestic sales contributed significantly to the overall performance decline.
Dev Sisters explained that the short-term revenue drop was influenced by the restructuring phase of its live games. However, they noted that management reforms and cost efficiency measures have somewhat mitigated the extent of the losses.
The company anticipates that from the third quarter onward, improvements in financial structure will become evident through fixed cost management and cost control. They also identified new game releases and the global service expansion of existing games as key drivers for performance recovery in the latter half of the year.
Notably, the performance of 'Cookie Run Classic,' which launched global services on June 25, is expected to be fully reflected in the third quarter results. According to the company, 'Cookie Run Classic' surpassed 10 billion won in cumulative revenue within a month of its global launch and has maintained the top spot in popularity and third place in revenue rankings on the Apple App Store in Thailand.
Additionally, the newly released game 'Cookie Run: Crumble,' which debuted on July 30, is showing early signs of success and continues to grow, according to the company.
Dev Sisters also highlighted its non-gaming intellectual property (IP) business as a growth driver for the second half of the year. The company has seen success in trading card games (TCG) and character merchandise, and plans to expand its licensing business, particularly in the North American market, in the latter half of the year.
In the second half of the year, Dev Sisters aims to maintain a company-wide focus on cost efficiency while pursuing a turnaround through successful new releases, revitalization of existing core titles, and expansion of its IP business.
* This article has been translated by AI.
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