[Concall] Kakao Games launched Umamus Me first half

Kakao Games held a conference call from 9:00 am today (3 days) and 2022.
At the conference call, Kakao Games announced the results of the first quarter of 2022, and the results of Odin’s launch in Taiwan through major questions and respondents, and Umamusme’s future plans and expectations, and new lineups prepared for the new lineup.
I continued to introduce roughly.

** May 3, 2022 (Tue) 09: 00 ~ 10: 00

True Seok: Major executives such as Kakao Games CEO Cho Kye -hyun

Announcement: Kakao Games’ 1Q18 total performance and QNA

■ Kakao Games in the first quarter of 2022 sales of KRW 266.3 billion… Umamusme was released in the first half

Kakao Games’ first quarter sales increased by about 105% year -on -year, down 7% from the previous quarter. Operating profit was about 42.1 billion won, up 170% year -on -year, down 7% QoQ. In terms of net profit, net profit is billions of won, which is compared to the previous quarter and % year -on -year.

In terms of sectors, the PC game sector recorded 71.4% year -on -year and 24.3% to W14.6bn. This is due to the lack of new titles, and the natural decrease in the existing title continues. Kakao Games explained that it is trying to break down the boundaries of crossplay and platforms, focusing on various masterpieces, and showcase leading results. In addition, he added that it is expanding its new lineup not only in domestic investment but also overseas investment as well as domestic investment as well as domestic investments.

Mobile games recorded a slight decrease in domestic sales of ‘Odin’, an increase of 194.6% YoY, down 11.4% QoQ to W177.2bn. He explained that it was released in Taiwan at the end of March in relation to Taiwan’s launch of Taiwan, but the sales were limited. However, even though it is a new IP, it is showing stable achievements, and compared to the domestic launch period, it will move to the global market with such achievements as it has been encouraging at the time of Taiwan’s launch.

In addition, ‘Umamusume’, which began pre -booking last month, is in the last quenching before its launch, and MMORPG ‘Ares’, which aims to achieve ‘Odin’ class in Ever Soul, which has the highest level of graphics and strategic gameability, and ‘Ares’, which aims to achieve ‘Odin’ class in global. He said he is preparing.

The other sectors consist of Kakao VX, SENA Technology, and other new businesses. Kakao VX predicted that Kakao VX and SENA Technology will continue to achieve sales performance as the brand awareness has increased.

Operating costs in the first quarter were W22.43bn, up 95.8% YoY, down 7.0% from the previous quarter. Labor costs reflected the annual salary increase in 22 years, and recruited development personnel to W47.5bn, up 86.1% YoY and 2.5% QoQ. The payment fee was 48.1% YoY and 14.7% QoQ, down 48.1% year -on -year due to the increase in market fees and developers’ RS costs due to the increase in game sales.

Marketing costs increased 82.9% YoY and 30.6% QoQ to W14.9bn, which is due to the efficiency of domestic marketing based on ‘Odin”s Taiwan launches and true users. The execution asset expenses were fixed expenses that occurred next year due to many M & A last year, up 331.8% YoY and 4% QoQ, up 4% QoQ. The other division, which consists of the cost of sales of Kakao VX and SENA Technologies, increased the cost of non -game sectors, increasing the cost of sales, 229.5% year -on -year, and 6.1% QoQ to 52.5 billion won.

Operating profit in 1Q was W42.1bn, up 169.7% YoY, down 7.4% from the previous quarter. Net profit was W28.3bn, up 54.2%YoY and 93.8%QoQ. This analyzed that the base effect occurred according to the removal of fair value re -evaluation due to the recruitment of Lion Heart in the previous quarter.

There was also a presentation on the BORA project associated with NFT and blockchain. BORA is an optimized platform for blockchain games and content distribution, and is preparing to use the BORA platform with various contents that combine not only existing games but also domestic and foreign blockchain after completing the first renewal. Based on the BORA platform, the company was able to issue NFT of ‘Buddy Shot’, and it was possible to introduce sequentially with the confirmation of the second half of the on board of other meaningful projects. In addition, he added that he is making a company -wide effort to develop global capabilities by investing in a promising studio with excellent development power, strengthening the lineup and using various strategies.

■ Q&A
Q. I wonder how much Taiwan’s achievements are. In addition, I would like to tell you the plan later. Also, Odin did not record the number one in Korea again? What is the recent domestic sales of Odin, and what is the future update status and strategy?

Taiwan is a competitive market. There was another IP that had maintained the top position there, so I was looking forward to seeing how much Odin would make a performance. However, since the launch, word of mouth quickly made more than expected. In 30 days of launch, the company achieved sales of 50 billion won, which is 70% compared to Korea. As the Taiwan market is less than 50% of the Korean market, the user indicators have twice as much as our expectations.

In particular, it is the biggest that this achievement has been achieved with low IP awareness. Currently, Taiwan is seen as a global advancement, and I think it has not been encouraging as a bridgehead for IP expansion. In addition, this achievement was made with the original IP, and the Odin user base could grow into a global IP because it included users who enjoyed other RPGs and young users who played soft games.

Unlike Odin’s No. 1 sales in the Apple Market on the first day of its launch, Google Play’s sales were a bit lower. This is because Odin supports cross play on mobile and PCs, so many users are enjoying PCs in Taiwan. Since Taiwan has a lot of Android phone users with low specifications, the proportion of PC play is high, and payment is also supported by self -payment on PCs. Indicators related to real user indicators and sales are healthy.

Taiwanese users’ content consumption is similar to the Korean market. Since Odin has been serviced in Korea for a year, the provision of the Taiwanese server will be provided faster than Korea. It will be a well -made masterpiece game that provides dense content for a long time. In addition, marketing to secure a wider user base is steadily executing. Marketing efficiency is very high.

In terms of Odin’s domestic performance and policy, the basic operation policy is to continue to enter the soft user base and young users as well as MMORPG users with reasonable BM policies and steady updates.

To this end, R & D continues, and in the first quarter, sales have been slightly lower than expected, as we have increased slightly than the update intervals we thought. In April, however, the new stats update and convenience improvement updates led to solid indicators, leading to rebounding sales.

Odin is currently focusing in two directions. One is to provide full -fledged fun based on PVP, and the other is to maintain the update direction that will cause growth needs for middle and lower users. To this end, since the main update plan has a monthly update plan, and the traffic maintains much higher than other games, we want to proceed with content -oriented updates rather than excessive updates related to sales and BM. Increasing sales will be calculated as a natural result of these updates.

Q. Can you tell me about the release date of Umamusme? And what is your expectation? In addition, I have been investing overseas recently, but what if I explain the investment plan of Kakao Games?

I started a pre -booking Umamus Me last month, and after the announcement, I will hold an event to release the release date soon. It is difficult to tell you before the event. In the near future, we will release it as soon as possible. Not only are Umamus Me’s achievements in Japan, but the results have been maintained for more than a year, so we expect to achieve that much. We expect high results in the third largest sales rankings in Korea, and we expect to maintain the results for a long time as in Japan.

Kakao Games’ recent investment direction is first, global, and second. First of all, the first investment in securing global competitive game IP is part of the investment in Frost Giant. In addition, among the companies we invested in, there is a playable world, which is the main driver of Raf Coaster, which is famous for its fun theory. Playable World is currently developing MMORPG, which is called ‘cloud -based MMO’ in the studio. It is scheduled to be released at the end of 2023.

Frost Giant, which was invested last year, was newly established by StarCraft Developers, and I would like to test it soon to some users of the current game. In addition to these two companies, companies that invest in Korea are also investing in a global competitive game IP. In addition, we are continuing to invest in global results in various fields such as Web 3.0, and we will make additional announcements soon.

Q. Please introduce the Odin Global launch plan. How do you see the Umamus Mate Target user base and how is the related marketing plan?

Odin’s global expansion aims to enter the next region within the year. As we have been convinced that we can work in Taiwan to some extent, we want to proceed with the schedule rather than we first thought.

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