Devsisters (194480.KQ), a KOSDAQ-listed game company, reported an operating loss of 17.4 billion won in the first quarter, widening its deficit. The company said it will implement a voluntary retirement program and conduct a comprehensive review of its entire portfolio as part of sweeping management reforms.
Devsisters reported first-quarter revenue of 58.5 billion won, an operating loss of 17.4 billion won, and a net loss of 15.1 billion won, the company said Sunday. Compared with the previous quarter, revenue fell 2% from 59.6 billion won, while the operating loss widened 40.3% from 12.4 billion won. The net loss also expanded approximately 33.6% from 11.3 billion won recorded in the preceding quarter.
The company explained that the revenue impact of the "CookieRun: Kingdom" fifth-anniversary update fell short of expectations, and external growth stalled due to weak initial performance of the new title "CookieRun: OvenSmash," which launched at the end of March. The operating loss widened as investment continued for new project development and intellectual property (IP) growth.
With underperformance persisting, Devsisters announced a management reform plan the same day. The company will implement a company-wide voluntary retirement program and freeze new hiring except for essential positions. It will also reassign internal personnel to organizations requiring additional staff.
Management accountability will also be strengthened. CEO Cho Gil-hyun, along with co-chairmen of the board Lee Ji-hoon and Kim Jong-heun, will forgo their entire salaries until management stability is secured. Key executives will also take a 50% pay cut. A cost management task force (TF) reporting directly to the CEO will be newly established.
The game and IP business portfolio will also be comprehensively reviewed, with resources concentrated on core titles. The expansion of the "CookieRun" IP, a core asset, will focus investment on key game lineups and IP businesses with tangible results, aiming for rapid earnings improvement. In addition, the company will fully introduce new technologies such as AI across all work areas except for the creative domain unique to IP, building a system that allows members to focus more on creative work and achieve higher completion within the same time frame. The company plans to gradually expand and establish new technology-based work infrastructure, which has been partially applied through internal R&D, across both development and non-development areas.
Meanwhile, Devsisters plans to globally launch "CookieRun: Crumble," a new idle RPG mobile title, in the third quarter. The "CookieRun: Braverse" card game will be listed on major platforms of the global single card trading market this summer. Having successfully entered more than 1,000 card shops worldwide to date, the company aims to secure collector bases and grow the market value of its cards. It is also preparing to enter the European market in the second half, seeking to gradually expand its trading card game (TCG) business.
