1. What Happened? Q2 2025 Earnings Breakdown
Kakao Games reported revenue of KRW 115.8 billion, an operating loss of KRW 8.6 billion, and a net loss of KRW 33.5 billion for the first half of 2025. The decline in sales compared to the same period last year is primarily attributed to the base effect of “Odin: Valhalla Rising” and the lack of new titles.
2. Why These Results? Analyzing the Earnings Decline
In addition to declining sales, increased R&D expenses, expanded marketing costs, and new investments led to an operating loss. Net loss also significantly fell short of market expectations, potentially negatively impacting investor sentiment.
3. What’s Next? Future Outlook and Investment Strategies
Kakao Games is striving to improve its fundamentals through the growth of its PC game segment and R&D investments aimed at securing future growth drivers. However, risk factors such as declining sales, worsening profitability, high R&D expenses, and financial burdens also exist. Therefore, investors should maintain a conservative investment strategy while closely monitoring the success of new titles and the visibility of a turnaround.
4. Investor Action Plan
- Short-term Investment: A cautious approach is necessary, considering market conditions and stock price volatility.
- Mid- to Long-term Investment: Continuously monitor the success of new releases and the visibility of a turnaround.
Frequently Asked Questions
How did Kakao Games perform in the first half of 2025?
The company reported revenue of KRW 115.8 billion, an operating loss of KRW 8.6 billion, and a net loss of KRW 33.5 billion.
What are the main reasons for the decline in earnings?
The base effect of “Odin: Valhalla Rising”, the absence of new titles, and increased R&D expenses are the primary factors.
What is the future outlook for Kakao Games?
While the growth of the PC game segment and R&D investments are positive, risk factors like declining sales and profitability exist. The success of new games is a key variable.
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