Kakao Games (KOSDAQ: 293490) reported mixed financial results for the first quarter of 2023, with total revenue reaching KRW 249.2 billion ($187 million), up 6% sequentially but down 6% year over year.
The company's operating income increased significantly, up 27% sequentially, but plunged 73% year-over-year.
Revenue from mobile games reached KRW 153.9 billion, showing a modest increase of 1% sequentially but a worrying decline of 13% year-on-year.
PC online games, on the other hand, generated revenues of KRW 14.1 billion, an increase of 30% sequentially and a decrease of 4% year-on-year.
Kakao Games' non-gaming business, which includes golf and sports leisure communication ventures, grew 11% sequentially and 9% year-on-year to KRW 81.2 billion.
The first quarter saw the launch of several new titles, including the large-scale MMORPG "ArcheAge War" and the collectible RPG "Eversoul," both of which impacted the performance of the mobile games segment.
ArcheAge War has received positive feedback for its fast-paced battles and convenient features, while Eversoul offers players an immersive experience with stunning 3D graphics.
Despite the challenges faced in the first quarter, Kakao Games plans to expand its portfolio and strengthen its position in the global market.
The company will release several new titles in various genres, including the highly anticipated MMORPG "ARES: Rise of Guardians," the side-scrolling action RPG "Goddess Order," and 6 to 10 blockchain-based games under the "Bora Battle" brand.
Kakao Games will also implement a "Beyond Korea" strategy by launching its flagship IP "Odin: Valhalla Rising" in Japan this June, followed by North America and Europe in the fourth quarter. "Eversoul" will also launch in Japan later this year.
The upcoming "Ares: Rise of the Guardians" aims to differentiate itself from existing MMORPG titles by offering a unique gameplay experience, including an expansive space civilization storyline, console-grade graphics, strategic combat, and real-time suit swapping.