Key insights
6 takeaways · ~2 min read- 01Q1 FY2025 revenue reached 89.1 billion KRW, representing a 49.7% YoY and 77.6% QoQ increase, largely driven by the fourth-anniversary update for CookieRun: Kingdom.See it on page 7
- 02Operating profit surged to 9.4 billion KRW, a 1231.5% QoQ increase, while net profit rebounded to 10.2 billion KRW following a loss in the previous quarter.See it on page 7
- 03Overseas game sales grew significantly, rising 108.5% QoQ and 51.9% YoY, indicating successful international market penetration.See it on page 8
- 04Operating expenses rose 61.1% QoQ to 79.7 billion KRW, primarily due to a 220.6% increase in advertising spend (21.6 billion KRW) and a 71.2% rise in service fees (30.8 billion KRW).See it on page 8
- 05The company’s marketing strategy, which allocated 50% of the user acquisition budget to the U.S. and other overseas markets, is projected to deliver a sales lift exceeding four times the incremental spend.See it on page 10
- 06The company’s financial position strengthened with total assets reaching 274.98 billion KRW and equity rising to 164.88 billion KRW, though cash and equivalents decreased to 7.65 billion KRW due to marketing outlays.See it on page 16
Summary
Q1 FY2025 revenue reached 89.1 billion KRW, up 49.7 % year‑over‑year and 77.6 % quarter‑on‑quarter, driven primarily by the CookieRun: Kingdom fourth‑anniversary update and a focused user acquisition (UA) campaign. Operating profit surged to 9.4 billion KRW, a 15.6 % YoY increase and 1231.5 % QoQ jump, while net profit rebounded to 10.2 billion KRW after a loss in Q4 FY2024, reflecting improved cost management and higher gross margins. Game sales accounted for 86.5 billion KRW of total revenue, with overseas sales expanding 108.5 % QoQ and 51.9 % YoY, underscoring successful international market penetration.
Cost analysis shows operating expenses rose 61.1 % QoQ to 79.7 billion KRW, largely due to a 220.6 % increase in advertising spend (21.6 billion KRW) and a 71.2 % rise in service fees (30.8 billion KRW). Labor costs grew modestly 6.6 % QoQ, while other operating items remained stable. The company’s marketing strategy involved producing over 1,000 creative assets annually and allocating 50 % of the UA budget to U.S. and other overseas markets, yielding a projected cumulative sales lift that exceeds four times the incremental spend.
Financial position improved with total assets rising to 274.98 billion KRW and equity increasing to 164.88 billion KRW, supported by higher retained earnings of 28.19 billion KRW. Current liabilities grew modestly, but cash and equivalents fell to 7.65 billion KRW, reflecting higher marketing outlays.
Overall, the quarter demonstrates robust growth in international sales and a successful scaling of UA initiatives, positioning the company for sustained profitability across its core mobile gaming segment.
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