Kakao Games (293490.KQ) widened its first-quarter loss as the absence of hit new titles and declining revenue from existing games weighed on its performance.
Kakao Games said in a regulatory filing Wednesday that preliminary first-quarter revenue on a consolidated basis came in at approximately 82.9 billion won ($60 million), with an operating loss of about 25.5 billion won ($18 million). Revenue fell roughly 33% year-on-year and 16% quarter-on-quarter. The operating loss widened by about 94.51% from 12.4 billion won a year earlier. Net loss reached 39.5 billion won.
By segment, PC and online game revenue rose about 4% year-on-year but fell roughly 7% quarter-on-quarter to approximately 27.9 billion won. Mobile game revenue came in at around 55 billion won, down about 43% year-on-year and 20% quarter-on-quarter.
The company said declining revenue from existing live titles and the absence of contributions from new releases weighed on the results.
Kakao Games plans to enhance the quality of its second-quarter new title lineup. A recent small-scale focus group test (FGT) for the 2.5D MMORPG "Project OQ" (working title) received top-tier evaluations for its key features, including 2D pixel art and worldview. The company is also stepping up quality verification of titles in development, with a closed beta test of the major online RPG "ArcheAge Chronicles" scheduled for June.
In addition, the company plans to roll out a diverse slate of new titles across mobile, PC, and console platforms, including the large-scale MMORPG "Odin Q," the strategy adventure RPG "Dungeon Arise," the open-world zombie survival simulator "God Save Birmingham," and the subculture nurturing simulation "Project C" (working title).
