Netmarble 1Q Operating Profit Plunges 40%... "New Titles' Impact to Reflect in Q2" (Comprehensive)

[Asia Economy Reporter Bu Aeri] Netmarble posted disappointing results due to increased marketing expenses for new titles.

Netmarble announced on the 13th that its first-quarter sales reached 532.9 billion KRW, with an operating profit of 20.4 billion KRW. Sales increased by 11.6% year-on-year, but operating profit decreased by 39.8%.

Netmarble CEO Kwon Young-sik explained during the conference call, "The first quarter was a case of heavy marketing expenditure," adding, "Marketing costs were excessively spent on the global launch of 'The Seven Deadly Sins,' the launch of 'A3: Still Alive,' and Kabam's Chinese release of Shop Titans."

The proportion of overseas sales in the first quarter was 71% (377.7 billion KRW). Following 72% in the fourth quarter of last year, overseas sales exceeded 70% for two consecutive quarters. The company explained that steady performance from major global markets such as North America and Japan with titles like 'Lineage 2 Revolution,' 'The Seven Deadly Sins,' 'Marvel Contest of Champions,' and 'Cookie Jam' was a key factor.

In particular, 'The Seven Deadly Sins,' released globally (excluding Korea, Japan, and some other countries) on March 3, entered the top 10 in app store popularity in 47 countries within one day of service launch. It ranked 3rd in sales on the North American Apple App Store (as of April 28) and achieved first place in sales in France and major Asian countries.

Netmarble expects the effects of the new titles released in March to be reflected in the second quarter.

Netmarble CFO Do Gi-wook stated, "The effects of the new titles in the first quarter are expected to be fully reflected throughout the second quarter, and marketing expenses will not increase compared to the first quarter," adding, "We expect a significant turnaround compared to the first quarter."

CEO Kwon said, "In the second quarter, the performance of hit new titles such as 'A3: Still Alive' and 'The Seven Deadly Sins,' released in March, will be fully reflected. We are also looking forward to the releases of 'Blade & Soul Revolution' and 'StoneAge World,' which are scheduled for Asia and global launches, respectively."

Netmarble plans to continue targeting the global market in the second quarter. The mobile MMORPG 'Blade & Soul Revolution' will be released on the 14th in 24 Asian countries, and 'StoneAge World,' utilizing its own intellectual property (IP), is being prepared for a simultaneous worldwide release within the second quarter.

This content was produced with the assistance of AI translation services.