Netmarble Reports Q1 Revenue of 602.6 Billion KRW with Operating Loss of 28.2 Billion KRW

Netmarble continued to report an operating loss in the first quarter of 2023.

Netmarble announced on the 11th that it recorded sales of 602.6 billion KRW and an operating loss of 28.2 billion KRW in the first quarter of this year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 20.1 billion KRW.

First-quarter sales decreased by 4.6% compared to the same period last year and by 12.3% compared to the previous quarter. EBITDA dropped 56% year-on-year and 43.7% quarter-on-quarter. The net loss for the period was 45.8 billion KRW. In particular, the net loss significantly decreased due to an increase in non-operating income and expenses, reflecting the absence of impairment costs on intangible assets recorded in the previous quarter.

Overseas sales amounted to 504.3 billion KRW, accounting for 84% of total sales, down 1 percentage point from the previous quarter. The sales distribution by region continued a diversified portfolio with North America at 48%, Korea 16%, Europe 13%, Southeast Asia 10%, and Japan 7%.

Netmarble plans to aim for a full-scale rebound in its gaming business in the second half of the year, starting with the release of anticipated new titles from the second quarter.

Kwon Young-sik, CEO of Netmarble, stated, “We recorded a loss in the first quarter due to the absence of new titles and declining sales of existing games. From the second quarter onward, we will sequentially release nine new multiplatform titles including 'Tower of God: New World,' 'Solo Leveling: ARISE,' and 'Arthdal Chronicles.' Additionally, five games that have obtained Chinese licenses are scheduled for release. We will do our utmost to restore the competitiveness of our gaming business.”

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