KakaoGames said on Tuesday it recorded an operating loss of 23 billion won in the second quarter this year, affected by stabilising revenue from existing live titles and a gap in new releases.

Second-quarter revenue under Korean International Financial Reporting Standards (K-IFRS) fell about 35 percent from a year earlier to 75 billion won. The company remained in the red for operating profit compared with a year earlier and the previous quarter, but narrowed the loss by 10 percent from the previous quarter.

By business segment, PC online game revenue rose 51 percent from a year earlier but fell 20 percent from the previous quarter to 22.3 billion won. Mobile game revenue fell 48 percent from a year earlier and 4 percent from the previous quarter to 52.7 billion won.

KakaoGames will carry out a broad business overhaul alongside a management restructuring in the third quarter. It will begin pre-registrations in August for the mobile massively multiplayer online role-playing game (MMORPG) “Dokkaebi’s World” and aims to release it in October.

It plans to launch “Dungeon Arise” and “God Save Birmingham” later this year and in early next year, respectively, and to introduce “Odin Q: Valkyrie Call” in early next year. It also plans to expand its game portfolio by consecutively securing global publishing rights for “ArcheAge S: Sea of Freedom” and “Guardian Maiden,” and by developing new titles based on comics and webtoon intellectual property (IP) through collaboration with The Grim Entertainment.

Alongside efforts to improve performance, it will also implement measures to enhance shareholder value. KakaoGames will carry out medium- to long-term shareholder return measures including the cancellation of 500,000 treasury shares, introducing a restricted stock unit (RSU) scheme for employees, transferring capital reserves into retained earnings to fund shareholder returns, and management purchases of its own shares.

KakaoGames CEO Si-woo Lee (이시우) said, “Going forward, we will focus on presenting high-quality games with a high chance of success in the global market and build solid fundamentals for sustainable growth.” He added, “We will sequentially unveil new titles reorganised around market competitiveness and continue transparent communication with users and shareholders.”