Webzen Reports 22.2 Billion KRW Operating Profit in Q1 2022, Down 40% YoY

[Asia Economy Reporter Seungjin Lee] Webzen announced on the 9th that its sales for the first quarter of 2022 reached 68.9 billion KRW, and operating profit was 22.2 billion KRW. These figures represent decreases of 10.5% and 40.3% respectively compared to the same period last year. Net profit for the period was 18.7 billion KRW, down 40.3% year-on-year.

The company explained that the decline in operating profit in the first quarter was due to increased marketing expenses while preparing for the release of the new mobile game "MU Origin 3," along with a slight decrease in revenue from existing games.

Webzen plans to expedite its in-house development projects to focus on releasing new games in the second half of the year and will concentrate on enhancing live game services such as "MU Origin 3" until the new releases. Starting with the launch of "MU Archangel 2" in Taiwan, the company aims to expand its game service market share by increasing overseas releases.

Currently, development subsidiaries such as "Webzen Blue Lock" and "Webzen Nova" are working on more than five new game development projects targeting market release from the second half of 2022. These subsidiaries are preparing new games aimed at various age groups in the mobile game market, including MMORPGs, in which Webzen holds a high market share, as well as casual games and collection-type RPGs.

Additionally, through publishing contracts, Webzen plans to enter the indie game market, which it has not previously engaged in, including console games, to explore new business opportunities in emerging game markets. Webzen is currently coordinating the timing of public releases for games whose investment and publishing contracts have been completed.

Kim Tae-young, CEO of Webzen, stated, "Although there were some delays in business and development schedules due to external factors such as remote work in response to COVID-19, we expect the business environment to stabilize this year." He added, "All employees will focus on strengthening growth through new game development, external investments, and publishing contracts as we carry out this year's business."

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