Updated Jun 1, 2026 by Kakao Games
Financial
Published by Kakao Games
Q3 2023 financial information contained in this presentation are estimates based on K-IFRS standards, and all financial and business results except for the stand-alone statement are consolidated-basis results which include subsidiary performance. Please note that the information was prepared to cater to investors and has not yet been reviewed by an outside auditor, and hence is subject to change upon the auditor’s review.
kakao games logo # Disclaimer Q3 2023 financial information contained in this presentation are estimates based on K-IFRS standards, and all financial and business results except for the stand-alone statement are consolidated-basis results which include subsidiary performance. Please note that the information was prepared to cater to investors and has not yet been reviewed by an outside auditor, and hence is subject to change upon the auditor’s review. Kakao Games therefore does not make any representation or accept liability as to the accuracy or completeness of the information herein and is not responsible for providing future updates on the information contained in this document.
# Contents 01 Summary 02 Revenue Breakdown 03 OPEX Breakdown 04 Operating & Net Profit Appendix. * Upcoming Global Title * Core line-up * Financial Summary kakao games logo
kakao games ## Summary * Despite revenue impact from the new title 'Ares: Rise of Guardians', Q3 Revenue down 14% YoY and 2% QoQ, on the back of prolonged recession * Even with enhanced profitability from the game business, Q3 Operating Profit down 48% YoY and 15% QoQ, due to losses from non-game business <thead> <th>Billion Won</th> <th>3Q22</th> <th>4Q22</th> <th>1Q23</th> <th>2Q23</th> <th>3Q23</th> <th>YoY</th> <th>QoQ</th> </thead> <tbody> <td>Revenue</td> <td>306.9</td> <td>235.7</td> <td>249.2</td> <td>271.1</td> <td>264.7</td> <td>-13.7%</td> <td>-2.4%</td> <td>Mobile</td> <td>197.0</td> <td>151.7</td> <td>153.6</td> <td>171.9</td> <td>183.8</td> <td>-6.7%</td> <td>6.9%</td> <td>PC</td> <td>13.3</td> <td>10.8</td> <td>14.1</td> <td>11.9</td> <td>11.5</td> <td>-13.5%</td> <td>-3.0%</td> <td>Others</td> <td>96.6</td> <td>73.2</td> <td>81.5</td> <td>87.3</td> <td>69.4</td> <td>-28.2%</td> <td>-20.5%</td> <td>OPEX</td> <td>263.2</td> <td>226.7</td> <td>237.8</td> <td>244.6</td> <td>242.1</td> <td>-8.0%</td> <td>-1.0%</td> <td>Operating Profit</td> <td>43.7</td> <td>9.0</td> <td>11.3</td> <td>26.5</td> <td>22.6</td> <td>-48.4%</td> <td>-14.8%</td> <td>OPM</td> <td>14.2%</td> <td>3.8%</td> <td>4.6%</td> <td>9.8%</td> <td>8.5%</td> <td>-5.7%p</td> <td>-1.2%p</td> <td>Net Income</td> <td>11.3</td> <td>-299.7</td> <td>4.2</td> <td>8.7</td> <td>3.7</td> <td>-67.3%</td> <td>-57.4%</td> <td>Controlling Interest</td> <td>3.2</td> <td>-295.4</td> <td>2.2</td> <td>3.4</td> <td>3.0</td> <td>-5.4%</td> <td>-11.4%</td>
<td>8.5%</td> <td>-5.7%p</td> <td>-1.2%p</td> <td>Net Income</td> <td>11.3</td> <td>-299.7</td> <td>4.2</td> <td>8.7</td> <td>3.7</td> <td>-67.3%</td> <td>-57.4%</td> <td>Controlling Interest</td> <td>3.2</td> <td>-295.4</td> <td>2.2</td> <td>3.4</td> <td>3.0</td> <td>-5.4%</td> <td>-11.4%</td> </tbody>
kakao games ## Revenue Breakdown ### 3Q Revenue reported 264.7 bn Won YoY 13.7% ▼ / QoQ 2.4% ▼ - Mobile Game : Marginal increase from new titles including 'Ares: Rise of Guardians', offsetting natural decline from legacy titles - PC Game : Decline due to deferred effect from major events for 'PUBG' - Others : Continuing macro headwind from prolonged recession ### Mobile (YoY 6.7% ▼ / QoQ 6.9% ▲) (Billion Won) <th>Quarter</th> <th>Revenue (Billion Won)</th> <td>3Q22</td> <td>197.0</td> <td>4Q22</td> <td>151.7</td> <td>1Q23</td> <td>153.6</td> <td>2Q23</td> <td>171.9</td> <td>3Q23</td> <td>183.8</td> ### PC (YoY 13.5% ▼ / QoQ 3.0% ▼) (Billion Won) <th>Quarter</th> <th>Revenue (Billion Won)</th> <td>3Q22</td> <td>13.3</td> <td>4Q22</td> <td>10.8</td> <td>1Q23</td> <td>14.1</td> <td>2Q23</td> <td>11.9</td> <td>3Q23</td> <td>11.5</td> ### Others (YoY 28.2% ▼ / QoQ 20.5% ▼) (Billion Won) <th>Quarter</th> <th>Revenue (Billion Won)</th> <td>3Q22</td> <td>96.6</td> <td>4Q22</td> <td>73.2</td> <td>1Q23</td> <td>81.5</td> <td>2Q23</td> <td>87.3</td> <td>3Q23</td> <td>69.4</td>
# OPEX Breakdown ## 3Q Operating Expense reported 242.1 bn Won YoY 8.0% ▼ / QoQ 1.0% ▼ - Labor Cost : Implement management efficiency measures on businesses with declining profitability - Commissions : Increase in developer RS following the release of newly published titles - Marketing Cost : Strategic target marketing and sustained marketing efficiency from legacy titles - Others (Amortization included): Decrease in COGS on the back of non-game revenue decline <thead> <th>Billion Won</th> <th>3Q22</th> <th>4Q22</th> <th>1Q23</th> <th>2Q23</th> <th>3Q23</th> <th>YoY</th> <th>QoQ</th> </thead> <tbody> <td>OPEX</td> <td>263.2</td> <td>226.7</td> <td>237.8</td> <td>244.6</td> <td>242.1</td> <td>-8.0%</td> <td>-1.0%</td> <td>Labor Costs</td> <td>48.3</td> <td>52.7</td> <td>49.4</td> <td>53.7</td> <td>51.1</td> <td>5.7%</td> <td>-4.8%</td> <td>Commissions</td> <td>110.7</td> <td>84.9</td> <td>92.4</td> <td>92.0</td> <td>104.3</td> <td>-5.8%</td> <td>13.3%</td> <td>Marketing Costs</td> <td>20.9</td> <td>15.2</td> <td>20.3</td> <td>20.6</td> <td>13.2</td> <td>-36.8%</td> <td>-35.9%</td> <td>Tangible/Intangible Amortization</td> <td>21.5</td> <td>20.8</td> <td>21.1</td> <td>21.5</td> <td>21.7</td> <td>0.8%</td> <td>0.6%</td> <td>Others</td> <td>61.7</td> <td>53.1</td> <td>54.6</td> <td>56.8</td> <td>51.9</td> <td>-15.9%</td> <td>-8.6%</td> <td>Operating Profit</td> <td>43.7</td> <td>9.0</td> <td>11.3</td> <td>26.5</td> <td>22.6</td> <td>-48.4%</td> <td>-14.8%</td> <td>Income Tax</td> <td>15.2</td> <td>-72.6</td> <td>-1.5</td> <td>9.4</td> <td>10.0</td> <td>-33.9%</td> <td>7.3%</td>
1Q26 Pearl Abyss Earnings Letter This presentation contains forward-looking statements that relate to our future operations, prospects, developments, strategies, business growth, and financial outlook. Forward-looking statements are identified by words such as 'believes', 'estimates', 'expects', 'intends', 'may', 'projects', 'could', 'should', 'will', 'continue' and other similar expressions.
Kakao Games reported a significant downturn in financial performance for the 2025 fiscal year, characterized by a lack of new title releases and increased investments in global expansion. Total annual revenue reached 465 billion KRW, representing a 25.9% year-over-year decline. The company shifted to an annual operating loss of 39.6 billion KRW, while the net loss widened to 143 billion KRW. This downward trend was particularly pronounced in the fourth quarter, where revenue fell to 98.9 billion KRW, a 25.8% decrease compared to the same period in the previous year. The mobile gaming segment, the company’s largest revenue driver, saw a 38.7% year-over-year decrease in the fourth quarter due to a vacuum in new content and major updates. Conversely, the PC gaming segment showed annual growth of 31.6%, though it experienced a 29.8% sequential decline in the fourth quarter as the high-base effect from major collaborations in PlayerUnknown’s Battlegrounds subsided. Operating expenses for the year were reduced by 17% through aggressive cost management, including labor restructuring and more selective marketing spend, yet these measures were insufficient to offset the revenue decline. Profitability was further impacted by non-operating factors, specifically the recognition of impairment losses on intangible assets, which contributed to a fourth-quarter net loss of 110.6 billion KRW. The consolidated balance sheet reflects these pressures, with total assets decreasing from 3.17 trillion KRW at the end of 2024 to 2.68 trillion KRW by the end of 2025. Despite the current losses, the company continues to focus on its long-term strategy of securing a new title pipeline and expanding its global footprint to stabilize future earnings.
Kakao Games reported its third-quarter 2025 financial results, highlighting a period of mixed performance characterized by a recovery in PC gaming revenue and a return to net profitability despite ongoing operating losses. Total revenue reached 127.5 billion KRW, representing a 10.1% increase from the previous quarter but a 21.7% decline year-over-year. This quarterly growth was primarily driven by a significant 187.8% surge in PC gaming revenue, totaling 42.7 billion KRW, fueled by successful collaboration updates for Battlegrounds. Conversely, mobile gaming revenue fell 16% sequentially to 84.8 billion KRW due to the natural stabilization of titles like Odin: Valhalla Rising and ArcheAge War. Operating expenses rose 6.8% quarter-over-quarter to 132.9 billion KRW, largely due to increased commission payments linked to the shifting revenue mix. Despite these costs, the company continued its focus on labor efficiency and strategic marketing. While the operating loss narrowed to 5.4 billion KRW compared to the previous quarter, the company successfully achieved a net profit of 34.6 billion KRW. This return to the black was supported by non-operating gains, including valuation gains from derivatives and financial income, marking a significant turnaround from the heavy net losses recorded in late 2024 and early 2025. The financial position remains stable with total assets valued at approximately 3.08 trillion KRW and a cash reserve of 560.5 billion KRW. The results indicate a transitional phase where the company is mitigating the absence of major new releases through the steady performance of core intellectual properties and rigorous cost management. The geographic focus remains centered on the South Korean market and global service expansions for its flagship mobile and PC franchises.
公司董事会及董事、高级管理人员保证年度报告内容的真实、准确、完 整,不存在虚假记载、误导性陈述或重大遗漏,并承担个别和连带的法律责 公司负责人刘伟、主管会计工作负责人任广露及会计机构负责人(会计主 管人员)邱晨声明:保证本年度报告中财务报告的真实、准确、完整。 公司已在本报告中详细描述未来将面临的主要风险及应对措施,详情请查 阅本报告“第三节、管理层讨论与分析”之“十一、公司未来发展的展望”部 分,本报告所涉及的未来计划、发展战略等前瞻性陈述,不构成公司对投资者 公司经本次董事会审议通过的利润分配预案为:以未来实施分配方案时股 权登记日的总股本扣减公司回购专用证券账户中股份总数为基数,向全体股东 每 10 股派发现金红利 1.90 元(含税),送红股 0 股(含税),不以公积金转增 第一节 重要提示、目录和释义 ................................................... 2 第二节 公司简介和主要财务指标 .................................................