Netmarble Reports Operating Profit of 3.7 Billion KRW in Q1, Returns to Profitability

Sales of 585.4 billion KRW... 2.9% decrease compared to the previous year

Netmarble announced on the 9th that it recorded consolidated sales of 585.4 billion KRW and an operating profit of 3.7 billion KRW in the first quarter of this year. Sales decreased by 2.9% compared to the same period last year, while operating profit turned positive.

Overseas sales amounted to 485 billion KRW, accounting for 83% of total sales. The sales distribution by region continued a diversified portfolio with North America at 48%, Korea 17%, Europe 13%, Southeast Asia 9%, and Japan 6%.

Sales contribution by game was Jackpot World 10%, Ratcha Slot and Cash Frenzy each 9%, Marvel Contest of Champions 8%, The Seven Deadly Sins: Grand Cross 7%, and Seven Knights Growth 5%.

Due to increased sales of social casino games such as Jackpot World, Ratcha Slot, and Cash Frenzy, which are serviced overseas, the North American sales ratio rose from 45% in the previous quarter to 48%, and casual game sales increased from 40% to 47% during the same period.

Operating expenses were 581.7 billion KRW, down 7.8% year-on-year and 10.1% quarter-on-quarter. The largest expense, commission fees, was 227.4 billion KRW, decreasing 8% year-on-year and 10.3% quarter-on-quarter due to the sales decline. Labor costs were 179.5 billion KRW, decreasing 4.3% compared to the first quarter of last year as workforce efficiency continued.

Netmarble plans to release various new titles following ‘Arthdal Chronicles: The Three Powers’ launched on the 24th of last month and the globally officially released action game ‘Solo Leveling: Arise’ on the 8th.

In particular, the blockbuster massively multiplayer online role-playing game (MMORPG) ‘Raven 2’, scheduled for release on the 29th, along with ‘The Seven Deadly Sins Growth’, ‘King Arthur: Legend Rise’, ‘RF Online Next’, and ‘Demis Reborn’?a total of four anticipated titles?will be sequentially introduced in the second half of the year.

Kwon Young-sik, CEO of Netmarble, said, "‘Arthdal Chronicles: The Three Powers’ and ‘Solo Leveling: Arise’, released consecutively in April and May, are showing a good initial trend, and a total of four new titles are prepared. We will focus all our capabilities to firmly restore the competitiveness of our game business this year.”

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