1. Joycity’s H1 2025 Performance: What Happened?

Joycity reported revenue of KRW 32.9 billion, operating profit of KRW 3.1 billion, and a net loss of KRW 0.4 billion for the first half of 2025. While operating profit turned positive, the net loss signals a concerning trend in profitability. This is attributed to a combination of factors, including continued revenue decline due to increased competition and a lack of new releases, coupled with rising R&D expenses and volatility in investment assets.

2. Why These Results?

The decline in revenue is primarily due to intensified competition in the gaming market and a lack of new game releases. While existing titles like ‘Pirates of the Caribbean: Tides of War’ and ‘Gunship Battle: Total Warfare’ performed steadily, they couldn’t offset the overall downward trend. High R&D expenses (19.95% of revenue) put pressure on short-term profitability, and volatility in cryptocurrency investments contributed significantly to the net loss.

3. What’s Next for Joycity?

Joycity is actively developing new titles, including ‘Resident Evil: Survival Unit’, ‘Disney Realm Breakers’, and a ‘Freestyle’ IP-based soccer game. Successful launches could drive revenue growth and improve profitability. However, high R&D expenses, low retained earnings, and cryptocurrency investment risks remain key challenges.

4. What Should Investors Do?

  • Closely monitor new game release schedules and market reception.
  • Pay continued attention to the efficiency of R&D spending and return on investment.
  • Keep an eye on cryptocurrency market trends and Joycity’s investment performance, considering the associated risks.
  • Monitor changes in global game market regulations and Joycity’s response strategies.