Devsisters 2021 Q1 Earnings Release

Devsisters reported record quarterly results for the first quarter of fiscal 2021, announced April 29, 2021, driven by the successful global launch of its new title "Cookie Run: Kingdom." The earnings release aims to show the company's sharp turnaround from losses in prior quarters and the financial impact of its newest hit game.

Sales reached KRW 105.4 billion, up roughly 475% year over year and 507% quarter over quarter, compared with about KRW 18.3 billion in Q1 2020 and KRW 17.4 billion in Q4 2020. Operating income was KRW 23.8 billion, reversing an operating loss of KRW 5.2 billion in Q4 2020 and a small KRW 0.5 billion profit a year earlier. Net income reached KRW 20.7 billion, a swing from a KRW 6.7 billion loss in the prior quarter. Operating expenses rose to KRW 81.6 billion from KRW 22.5 billion in Q4 2020, reflecting the scale of the launch. The earlier title "Cookie Run: OvenBreak" also saw renewed quarterly sales growth, which management attributes to synergy among Cookie Run IP titles. Through the first three quarters of 2020, quarterly sales stayed in a narrow range of KRW 17.1 to 18.3 billion, with operating losses in Q2 through Q4.

The balance sheet strengthened considerably. Total assets grew from KRW 132.2 billion to KRW 184.6 billion, while total liabilities rose from KRW 32.5 billion to KRW 60.3 billion. Trade receivables jumped from KRW 5.5 billion to KRW 37.3 billion, consistent with platform payments from the launch quarter, and other current liabilities also expanded sharply. Current financial assets at fair value rose to KRW 62.9 billion. Retained earnings moved from a KRW 7.9 billion deficit to KRW 12.3 billion in surplus, and total shareholders' equity increased to KRW 124.3 billion from KRW 99.7 billion.

The data covers consolidated company results on a quarterly basis from Q1 2020 through Q1 2021, in KRW, and includes a standard forward-looking statement disclaimer.