Kakao Games Q4 2021 Earnings Results

Key insights

7 takeaways

01
Kakao Games achieved 1.01 trillion KRW in annual revenue for 2021, a 104.3% increase over the previous year.See it on page 8
02
Annual net profit grew by 670.7% to 520.3 billion KRW, while annual operating profit rose 71.9% to 114.3 billion KRW.See it on page 8
03
Q4 2021 revenue reached 286.7 billion KRW, with mobile games accounting for 200 billion KRW of that total.See it on page 4
04
Q4 2021 operating profit was 47.9 billion KRW, representing a 189.2% increase year-over-year and a 16.7% operating margin.See it on page 7
05
The company is prioritizing global expansion for 'Odin: Valhalla Rising' and entering the GameFi sector through the development of the BORA 2.0 platform.See it on page 10
06
Management plans to release over ten new mobile and PC titles in 2022 to maintain growth momentum.See it on page 11
07
Operational expenses in 2021 increased due to higher commission payments and personnel costs associated with expanded development and publishing activities.See it on page 6

Summary

Kakao Games reported significant financial growth for the fourth quarter and full fiscal year of 2021, driven primarily by the strong performance of its mobile gaming segment. The company achieved annual revenue of 1.01 trillion KRW, representing a 104.3% increase compared to the previous year. Annual operating profit reached 114.3 billion KRW, a 71.9% rise, while annual net profit surged by 670.7% to 520.3 billion KRW.

Quarterly results for the fourth quarter of 2021 showed revenue of 286.7 billion KRW, with mobile games contributing 200 billion KRW. Operating profit for the quarter stood at 47.9 billion KRW, reflecting a 12% increase quarter-over-quarter and a 189.2% increase year-over-year. The company’s operating margin for the quarter was 16.7%. These financial figures are based on consolidated financial statements prepared in accordance with Korean International Financial Reporting Standards, though they remain subject to final audit adjustments.

The company’s growth strategy centers on global expansion and the integration of blockchain technology. Key initiatives include the international launch of the title Odin: Valhalla Rising, which saw substantial success in the domestic market, and the development of the BORA 2.0 platform to expand into the GameFi sector. Looking ahead to 2022, the company plans to release over ten new titles across various genres, including mobile and PC platforms, to sustain its momentum in both domestic and international markets. Operational expenses for the year were heavily influenced by increased commission payments and personnel costs, which rose in alignment with the company's expanded development and publishing activities.