Netmarble Posts 53.1 Billion Won Operating Profit in Q1... "New Title Sales to Be Fully Reflected in Q2"

Sales Up 4.5% Year-on-Year to 651.7 Billion Won
Marketing Expenses Surge 47.3% Due to New Releases

Netmarble reported a slight year-on-year growth in its first quarter performance this year, driven by the release of new titles. The company expects that revenue from these new releases will be fully reflected starting in the second quarter of 2026.

Netmarble logo. Provided by Netmarble

According to a disclosure on May 7, Netmarble announced that its consolidated sales for the first quarter of 2026 reached 651.7 billion won, up 4.5% year-on-year. However, compared to the previous quarter, sales decreased by 18.3%. Operating profit was 53.1 billion won, representing a 6.8% increase year-on-year but a 52.1% decrease compared to the fourth quarter of last year.

The release of new titles contributed to the growth in performance. In the first quarter of this year, sales saw a slight increase due to the launch of new titles such as 'Stone Age: Grow' and 'The Seven Deadly Sins: Origin.' However, as most major new releases were launched toward the end of the quarter, performance declined compared to the previous quarter, according to Netmarble.

Overseas sales accounted for a significant portion of the results. Overseas revenue in the first quarter of this year reached 512.2 billion won, representing 79% of total sales. By region, sales were distributed as follows: North America 41%, Korea 21%, Europe 13%, Southeast Asia 12%, Japan 7%, and others 6%.

Net profit for the period soared by 163% year-on-year to 210.9 billion won, marking a return to profitability compared to the previous quarter. Netmarble stated, "The increase in net profit was driven by gains from the sale of owned assets," adding, "Revenue growth is expected to accelerate in the second quarter of this year as sales from new titles are fully reflected."

Operating expenses amounted to 598.6 billion won, up 4.2% year-on-year and down 12.8% from the previous quarter. Marketing expenses, impacted by new releases, rose 47.3% year-on-year to 168.2 billion won. Labor costs decreased by 2.6% year-on-year to 167.6 billion won, while commission expenses dropped 8.3% to 200.9 billion won.

Netmarble plans to continue releasing new titles throughout the second quarter. This month, the company will launch 'Game of Thrones: King's Road' in Asia, followed by 'SOL: enchant' next month. In the second half of the year, Netmarble is set to release five additional titles: 'Solo Leveling: Karma,' 'Shangri-La Frontier: The Seven Supreme Species,' 'Project Octopus,' 'Evil Bane,' and 'Project Aegis.'

Byunggyu Kim, CEO of Netmarble, stated, "Since the major new releases in the first quarter were concentrated at the end of the period, their contribution to revenue was only partially reflected. With our diversified portfolio, where global sales account for 79%, we expect to see both top-line growth and improved profitability starting from the second quarter of this year."

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