Devsisters' revenue last year grew by double digits and neared 300 billion won, but operating profit fell sharply. The flagship intellectual property (IP) "Cookie Run: Kingdom" delivered results in the global market and drove revenue growth, but profitability worsened as marketing expense and labor costs increased.
Devsisters said on Feb. 9 that last year's revenue rose 24.8% year over year to 294.7 billion won. The steady popularity of the flagship "Cookie Run: Kingdom" and the North American launch of "Cookie Run: Braverse Card Game" led revenue growth.
By contrast, operating profit came to 6.2 billion won, down 77.2% from a year earlier, due to expanded investment such as labor costs from new project development and higher advertising and promotion expenses to expand the IP. Net profit for the period was tallied at 15.4 billion won, down 45.7%. Operating profit and net profit fell by a wide margin from a year earlier, to the level of an earnings shock.
In the case of "Cookie Run: Kingdom," last year's revenue more than doubled from a year earlier, continuing its growth trend. In January, marking the fifth anniversary of its release, MAU (monthly active users) increased 24% from the previous month. Last year, overseas revenue for "Cookie Run: Kingdom" rose 59%, and the share of overseas in total revenue also grew to 72%.
Fourth-quarter revenue last year was 58.7 billion won, up 16.9% from a year earlier, but operating loss turned to a deficit at 12.6 billion won. Net loss was 6.8 billion won. A Devsisters official said, "Ahead of IP expansion and the fifth anniversary of 'Cookie Run: Kingdom,' proactive increases in advertising and promotion expenses and higher labor costs from new project development widened losses from the previous quarter."
Devsisters set "expansion" and "evolution" as this year's business direction. The strategy is to secure a sustainable growth engine by expanding the Cookie Run IP.
It is also moving to diversify genres through new titles. As part of that, it will launch "Project CC" in the second half of the year. "Project CC" is a new title tailored to the mobile game trend of recent hits in the casual genre. It is expected to newly deliver Cookie Run's signature casual and witty experience that anyone can easily enjoy.
Cultural expansion of the Cookie Run IP will also continue. Following the special exhibition at Deoksugung Dondeokjeon and the art collaboration project, the company plans multifaceted activities with the Korea Heritage Service to promote Korea's UNESCO-listed World Heritage sites, aiming to perform as a national brand. In the case of the art collaboration special exhibition, the plan is to enhance the global recognition of Cookie Run and traditional Korean art through overseas expansion, including the United States, and to extend into a new business area.
In addition, it will push development of future-driving Cookie Run and new IP projects such as "Project AR," which combines Cookie Run–based digital experiences with the real world, and "Project N," which brings together the entire Cookie Run universe. A company official said, "This year, we will lay the groundwork for Cookie Run to leap into a global super IP."