Kakao Games (293490) Q2 2025 earnings summary

Executive summary

• Focused on diversifying platforms and global monetization strategies, leveraging core IPs for stable earnings, and rigorous P&L management including headcount reallocations and marketing efficiency.

• Operates as a comprehensive game company, developing and publishing PC, console, and mobile games globally, leveraging the KakaoTalk and Daum platforms.

• Major titles include 'Kakao Battleground', 'Path of Exile', 'Odin: Valhalla Rising', and 'Uma Musume Pretty Derby', with Odin expanding into North America, Europe, and Southeast Asia.

• Recent strategic moves include divestment of non-core businesses (golf, wireless devices) and expansion into blockchain gaming.

• Operating loss narrowed compared to the previous quarter, supported by growth from in-house intellectual property.

Financial highlights

• Q2 2025 consolidated revenue was KRW 115.8 billion, down 24% year-over-year and 6% sequentially, mainly due to lack of new titles and major updates.

• Operating loss for the quarter was KRW 8.6 billion, an improvement from a KRW 12.4 billion loss in Q1 2025.

• Net income remained negative at KRW 33.6 billion in Q2 2025.

• PC game revenue declined 9% year-over-year and 45% sequentially to KRW 14.8 billion, impacted by waning Early Access effects.

• Mobile revenue fell 26% year-over-year, but Odin's regional expansion drove 5% sequential growth to KRW 101 billion.

Outlook and guidance

• Large-scale updates and new global releases planned for the second half, with focus on earnings stability until AAA title launches.

• Several new in-house and IP-based titles are scheduled for release from 3Q25 through 2026, targeting global and regional markets across mobile, PC, and console platforms.

• Upcoming releases include Goddess Order in September and new strategy RPG and subculture genre games targeting global markets.

• Strategic delay in major game launches to enhance content quality and competitiveness, aiming for sustainable mid- to long-term growth.

• Focus on global publishing, new game launches, and leveraging Kakao platform for marketing.