Kakao Games has released its financial results for the fourth quarter of 2024, reporting a revenue of 160.1 billion KRW, reflecting a 21.4% year-over-year decline and a 17.4% decrease from the previous quarter. The decline is attributed to the absence of new game releases and the continued decrease in revenue from older titles. Mobile game sales dropped 30.4% year-over-year and 13.8% quarter-over-quarter, while PC game revenue increased 57.3% year-over-year but declined 39.6% from the previous quarter due to fewer major updates. Other revenue sources, including non-game businesses, also recorded a decline.
The company reduced its operating expenses by 11.7% year-over-year and 11.6% quarter-over-quarter, primarily by optimizing labor costs and adjusting marketing expenditures. Despite these cost reductions, Kakao Games posted an operating loss of 6.3 billion KRW and a net loss of 102.3 billion KRW, influenced by asset impairments at the end of the year. The company’s financial position reflects ongoing challenges in maintaining stable revenue as it navigates a period without major new releases.
Looking ahead, Kakao Games has outlined several upcoming releases planned for 2025 and early 2026, including Project Q (MMORPG), Goddess Order (Action RPG), and ArcheAge Chronicle (Online RPG) across various platforms. These titles may contribute to future revenue growth, but the company’s financial performance will likely depend on the reception of these releases and its ability to manage costs effectively.
