DRX Reports 2025 Revenue of ₩12.8 Billion; Operating Profit Drops 56%

DRX Corporation's net profit for 2025 fell to less than ₩10 million, a significant decline from the ₩100 million recorded the previous year. While revenue increased, operating expenses rose in tandem.

According to the 2025 audit report released on the 16th, DRX posted ₩12.8 billion in revenue, a slight increase from ₩11.3 billion the year prior. Notably, team operation revenue saw a substantial jump from ₩4.1 billion to ₩7.1 billion.

Despite this revenue growth, operating profit fell to ₩360 million, less than half of the ₩820 million recorded last year. This was due to a surge of over ₩2 billion in selling, general, and administrative expenses, including travel and transportation costs (which rose from ₩100 million to ₩300 million) and commission fees (which rose from ₩4.8 billion to ₩6.4 billion). Given the nature of esports organizations, player contract costs are likely included under commission fees.

As a result, net profit for the period stood at just ₩9.88 million—a more than tenfold decrease compared to the ₩100 million reported the previous year.

Regarding assets, the company recorded a total of ₩15.9 billion, an increase from ₩14.4 billion the previous year. However, accounts receivable surged from ₩1.5 billion to ₩3.8 billion, which appears to have hindered cash flow. The increase in total liabilities from ₩1.3 billion to ₩2.8 billion was largely driven by ₩2 billion in new short-term borrowings.

Furthermore, as of 2025, the company's accumulated deficit remains substantial, with unappropriated retained earnings at -₩27.6 billion.

A notable development is that the LCK franchise fee was significantly reduced from ₩10 billion to ₩6.33 billion following a contract amendment in July 2024. The difference of ₩3.67 billion was offset, and DRX has now fully paid off the remaining balance of the franchise fee.

This article was originally written in Korean and translated with the help of NC AI. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. [Read Original]

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