Netmarble Reports 3Q Operating Profit of 26.6 Billion KRW, Down 69.6% YoY Due to New Game Underperformance (Update)

[Asia Economy Reporter Kang Nahum] Netmarble announced on the 10th that it recorded consolidated sales of 607 billion KRW and operating profit of 26.6 billion KRW for the third quarter of this year.

Sales and operating profit decreased by 5.5% and 69.6%, respectively, compared to the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 58.5 billion KRW, down 48.9% from the previous year.

Cumulative sales up to the third quarter of this year amounted to 1.7546 trillion KRW, cumulative operating profit was 97 billion KRW, and cumulative EBITDA was 180.6 billion KRW.

Overseas sales for this quarter reached 426 billion KRW, accounting for 70% of total sales, maintaining a high proportion of overseas revenue.

Netmarble CEO Kwon Young-sik said, "The decline in key indicators of existing games and the poor performance of newly released titles combined to prevent improvement in third-quarter results," adding, "From the fourth quarter, the easing of social distancing and changes in work systems will stabilize the development environment, and with the consolidation of SpinX's performance and the release of various new titles, we expect results to improve."

Netmarble launched Seven Knights 2 on Google Play and Apple App Store in 172 regions and is preparing for the global release of Second Country. Additionally, new titles such as Seven Knights Revolution, BTS Dream: TinyTAN House, and Merge Kungya Island are scheduled to be released in the first half of next year.

Meanwhile, the performance of the global mobile social casino game company SpinX, whose 100% stake acquisition was completed last month, will be included in consolidated results starting from the fourth quarter.

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