Kakao Games Q1 2022 Earnings Results

Key insights

6 takeaways

01
Kakao Games reported Q1 2022 revenue of 266.3 billion KRW, a 104.7% increase year-over-year.See it on page 4
02
Operating profit reached 42.1 billion KRW, representing a 169.7% year-over-year increase and a stable 15.8% operating margin.See it on page 7
03
Mobile gaming revenue surged 194.6% year-over-year to 177.2 billion KRW, while PC gaming revenue contracted by 71.4% to 14.6 billion KRW.See it on page 5
04
Operating expenses rose to 224.3 billion KRW, driven by increased personnel costs and marketing spend for the launch of Odin in Taiwan.See it on page 6
05
The company is prioritizing the expansion of its BORA blockchain ecosystem with upcoming NFT-based titles including Buddy Shot, Competz, and ArcheWorld.See it on page 8
06
The future product pipeline includes EverSoul, Dysterra, and Ares: Rise of Guardians, aimed at diversifying the company's portfolio across mobile and PC platforms.See it on page 10

Summary

Kakao Games reported its financial performance for the first quarter of 2022, highlighting a period of significant year-over-year growth despite a slight sequential decline. The company generated 266.3 billion KRW in total revenue, representing a 104.7% increase compared to the same period in 2021. Operating profit reached 42.1 billion KRW, a 169.7% increase year-over-year, maintaining a stable operating margin of 15.8%.

The revenue structure remains heavily driven by the mobile gaming segment, which contributed 177.2 billion KRW, marking a 194.6% year-over-year surge. Conversely, PC gaming revenue saw a contraction, falling to 14.6 billion KRW, a 71.4% decrease from the previous year. Operating expenses for the quarter totaled 224.3 billion KRW, influenced by increased personnel costs due to hiring and salary adjustments, as well as marketing expenditures associated with the launch of Odin in Taiwan.

Strategic initiatives for the remainder of 2022 focus on expanding the BORA blockchain ecosystem, with plans to launch various NFT-based titles including Buddy Shot, Competz, and ArcheWorld. The company also maintains a robust pipeline of upcoming releases, such as EverSoul, Dysterra, and Ares: Rise of Guardians, targeting both domestic and global markets. These efforts are designed to leverage existing intellectual properties and diversify the company’s portfolio across mobile and PC platforms. The financial results are presented on a consolidated basis, reflecting the performance of Kakao Games and its subsidiaries, and are subject to final audit adjustments.