Kakao Games Corp. reported a fourth-quarter operating loss of 6.3 billion won ($4.8 million) as revenue declined across its key mobile gaming segment and the company grappled with rising costs.
The South Korean game developer saw revenue fall 21.4% year-over-year to 160.1 billion won in the quarter, driven by a 30.4% plunge in mobile gaming income. The company cited an absence of new titles and natural decline of aging games for the weak performance.
While PC gaming revenue rose 57.3% compared to the previous year, the smaller segment wasn’t enough to offset mobile weakness. Operating expenses dropped 11.7% to 166.3 billion won as the company cut marketing costs and commissions.
The gaming firm recognized significant one-time losses on investment assets following year-end impairment reviews, leading to a net loss of 102.3 billion won for the quarter.
Looking ahead, Kakao Games plans to launch several new titles in 2025, including a baseball simulation game and action RPGs. However, most major releases aren’t scheduled until the second half, suggesting continued pressure on near-term results.
The company’s shares have declined 15% this year as investors worry about the lack of new hit games and growing competition in the mobile gaming market.
