SundayToz, 1Q Operating Profit 2 Billion KRW... Down 32.2% YoY

[Asia Economy Reporter Kang Nahum] SundayToz announced on the 11th that its consolidated sales for the first quarter of 2021 amounted to 23.4 billion KRW, a decrease of 18% compared to the same period last year.

During the same period, operating profit was 2 billion KRW, and net profit was 3.2 billion KRW, down 32% and 60% respectively from the previous year.

The decline in operating profit was analyzed to reflect one-time expenses such as marketing, which more than doubled, and research and development costs that increased by about 14%. In particular, the company explained that research and development expenses, which expanded technology development such as artificial intelligence technology and the use of servers and databases, increased from about 7% of sales in the same period last year to 13% of sales in the first quarter of this year, thereby enhancing global competitiveness.

Meanwhile, SundayToz confirmed the domestic release of its new simulation casual game, "Nemo's Ocean Life," at the end of this month and announced its future business plans.

On the 1st of next month, "PlayLynx," a merged corporation of Lynx Games and SundayToz Play, which recorded a return to profitability in the first quarter of this year, will officially launch and actively target the overseas social casino market.

Also, "Disney Pop Town," a mobile game that accounts for about half of SundayToz's overseas sales, is expected to lead global sales by expanding its service to regions outside Asia.

A SundayToz official said, "Thanks to the expanded business investment and development in the first quarter, various new releases and new business developments, as well as strengthening the services of existing games, will be carried out in the second half of the year," adding, "We expect that SundayToz's diversified revenue sources specialized in the casual genre will be established."

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