SundayToz Reports Operating Profit of 8.3 Billion KRW Last Year, Down 36% YoY

[Asia Economy Reporter Seungjin Lee] SundayToz announced its 2021 performance on the 16th.

SundayToz reported sales of 105.6 billion KRW and operating profit of 8.3 billion KRW last year. These figures represent decreases of 0.6% and 36%, respectively, compared to the previous year. Net profit for the period increased by 6.5% to 15.6 billion KRW.

The annual decline in operating profit reflects the Q4 results, which recorded sales of 29.8 billion KRW, operating profit of 300 million KRW, and net profit of 3.8 billion KRW. Q4 sales and net profit rose by 18% and 270%, respectively, compared to the same period last year. However, operating profit sharply dropped by 92% year-on-year.

Regarding this, SundayToz explained that the equity method was applied due to increased subsidiary expenses in Q4. This was influenced by one-time marketing costs concentrated on the release of a new title and cross-advertising by subsidiary Playings in December last year. Additionally, investments in research and development for incubating subsidiaries Playmatchical and Playtoys were major factors in the expanded subsidiary expenses. On the other hand, net profit significantly increased year-on-year due to the Q4 valuation gains from the 'Anipang Fund,' which is operated at a scale of 9 billion KRW.

Meanwhile, SundayToz, having welcomed Wemade as its largest shareholder, is expected to accelerate the release of new blockchain-based titles such as non-fungible tokens (NFTs), which have been in progress since the first quarter of last year. The blockchain-based new titles are being developed with Playings targeting social casino games and Playmatchical aiming for genre-combined casual games, both planned for release this year. Additionally, the Japan market-specialized SNG 'Pastel Garden' and the nurturing puzzle game 'Nemo's Ocean Life' are scheduled for overseas general application market service in the first half of this year.

Lee Hodae, CEO of SundayToz, said, “Subsidiary marketing expenses are showing positive indicators such as returning to first place in sales in the Facebook market and favorable advertising business.” He added, “We will prepare overseas new titles enhanced by the Wemix platform to pioneer new overseas sales channels and secure stable distribution networks, aiming to become a leading representative of the casual genre’s P&E (Play & Earn).”

Along with expanding domestic and international casual game services, SundayToz’s first blockchain-introduced new title, developed in collaboration with Wemade on a global blockchain platform service, is expected to be released as early as the first half of this year.

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