While other companies have succeeded in bucking the trend of decline following covid, Devsisters is in line with the majority of game makers with falling profits. Net income fell 7.6 percent from -$1.7 million to -$2.9 million.
Operating income saw a slightly smaller fall of 7.4 percent, from -$1.65 million to -$2.85 million. Devsisters stars that this loss is due to “an increase in overall fixed costs and advertising cost”. As such, it’s likely that this is a temporary setback as the company learns to navigate these market changes.
The company also saw a small decrease in sales quarter on quarter, from $39.7 million to $38.5 million. The report attributes this to the sales stabilisation of the company’s major titles.
Where are the sales coming from?
$38.9 million of the company’s sales came from games, while $500 thousand came from merchandise. $17.5 million of the company’s sales came from the domestic market, compared to $20.5 million from international markets. However, this isn’t reflected in the performance of the company’s top games, Cookie Run: Ovenbreak and Cookie Run: Kingdom, which both saw more success in Korea than in other markets.
Cookie Run: Ovenbreak maintained it’s number 3 spot in Korea’s app store, achieving 45 million cumulative users throughout the year. Cookie Run: Kingdom saw a significantly higher proportion of overseas users, in part due to leveraging the popularity of the Disney IP, as well as a collaboration with chart-topping boy band BTS.
Despite a downturn in income, the company still has $99.5 million in current assets, including $9.6 million in cash and cash equivalents and $5.9 million in short-term financial instruments.
A Newzoo report from July found that three-quarters of South Koreans are gamers, with mobile as the most popular platform.