Devsisters posted a loss in the first quarter this year due to weak performance of new releases and rising expense.
Devsisters said on the 11th that first-quarter revenue fell 34.4% year over year to 58.5 billion won. It swung to an operating loss of 17.4 billion won. Net loss came to 15.1 billion won.
The company said results deteriorated as the new release in March, "Cookie Run: OvenSmash," underperformed and updates to the existing "Cookie Run: Kingdom" fell short of expectations. In addition, losses widened due to investments to develop new projects and grow intellectual property (IP).
A Devsisters official said, "To overcome the current management situation we face, we will carry out strong organizational reforms and focus on establishing a foundation for the company's sustainable growth and a solid financial structure."
To improve profitability, the company will halt new hiring except for essential roles and implement a voluntary retirement program across the organization. It decided that Chief Executive Cho Gil-hyeon and the management team will work without pay, and executives will cut their compensation by 50%.
It will also conduct a full review of its games and IP business portfolio, reallocating resources to core titles with higher hit potential. For its flagship IP, Cookie Run, it will concentrate investment on titles that show tangible results, and new projects will undergo strict business feasibility reviews.
For its flagship game, "Cookie Run: Kingdom," the company plans to continue long-term service and revenue stability based on strong engagement with its characters and universe. In the third quarter, it will launch the new mobile game "Cookie Run: Crumble," an idle role-playing game (RPG), globally. "Cookie Run: Bravers Card Game" will launch on a leading platform in the global single card transaction market this summer, and the company is also preparing to enter the European market in the second half.
Along with this, in the third quarter it will release the Roblox game "Cookie Run Card Collection," based on a trading card game (TCG) experience.
The character merchandise business will also expand. The company will broaden overseas shipping regions for the Cookie Run Store and strengthen global distribution channels by increasing direct local delivery through the official Amazon store. It also plans to actively pursue U.S.-centered partnerships and expand global licensing.
A Devsisters official said, "Based on our management reform plan, we will ensure successful settlement of new titles in the second half and improve the efficiency of key live services."