Kakao Games Q1 2021 Earnings Results

Key insights

6 takeaways

01
Kakao Games reported Q1 2021 revenue of 130.1 billion KRW, a 35% increase year-over-year.See it on page 7
02
Net profit reached 18.3 billion KRW, marking a 67.5% growth compared to the same period in 2020.See it on page 7
03
Mobile games generated 60.1 billion KRW in revenue, outperforming PC games, which contributed 51.1 billion KRW.See it on page 5
04
Operating profit for the quarter was 15.6 billion KRW, maintaining a 12% operating profit margin despite a 36.8% year-over-year increase in operating expenses.See it on page 7
05
Operating expenses rose to 114.5 billion KRW, driven primarily by increased personnel costs and marketing investments.See it on page 6
06
The company plans to launch over ten new titles in 2021, including 'Odin: Valhalla Rising,' the international expansion of 'Moonlight Sculptor,' and the global release of 'Eternal Return.'See it on page 9

Summary

Kakao Games reported its financial performance for the first quarter of 2021, highlighting a period of sustained growth driven by its diverse portfolio of mobile and PC gaming titles. The company achieved total revenue of 130.1 billion KRW, representing a 35% increase compared to the same period in the previous year, despite a slight 8.4% decline on a quarterly basis. Operating profit reached 15.6 billion KRW, with a net profit of 18.3 billion KRW, reflecting a robust 67.5% year-over-year growth in net earnings.

The revenue breakdown indicates that mobile games remained the primary contributor at 60.1 billion KRW, followed by PC games at 51.1 billion KRW. Operating expenses for the quarter totaled 114.5 billion KRW, a 36.8% increase year-over-year, largely attributed to higher personnel costs and marketing expenditures. The company maintained an operating profit margin of 12%, demonstrating stable operational efficiency despite the aggressive investment in new content and market expansion.

Looking ahead, the company outlined an ambitious roadmap for the remainder of 2021, planning to launch over ten new titles across various genres and platforms. Key upcoming releases include high-profile projects such as Odin: Valhalla Rising, the international expansion of Moonlight Sculptor, and the global release of Eternal Return. By leveraging both internal development capabilities and strategic publishing partnerships, the company aims to strengthen its market position in the domestic and global gaming sectors. The financial data provided is based on consolidated figures prepared in accordance with Korean International Financial Reporting Standards.