Netmarble reported increases in both revenue and operating profit for the first quarter of this year, driven by new game releases. The company plans to continue its growth trajectory with five major new titles set to launch in the second half of the year.
On May 7, Netmarble announced its consolidated revenue for Q1 reached 651.7 billion won, with an operating profit of 53.1 billion won, marking increases of 4.5% and 6.8%, respectively, compared to the same period last year.
The growth was attributed to the successful launch of new games like 'Stone Age: Grow' and 'The Seven Deadly Sins: Origins,' although their contributions were limited as they were released at the end of March.
Netmarble's net profit also rose due to gains from the sale of its stake in HYBE. The company anticipates that revenue growth will accelerate in Q2 as new game sales begin to reflect more fully.
Internationally, Netmarble's Q1 overseas revenue reached 512.2 billion won, accounting for 79% of total sales. North America led with 41%, followed by South Korea at 21%, Europe at 13%, Southeast Asia at 12%, Japan at 7%, and other regions at 6%.
Marketing expenses surged to 168.2 billion won, a 47.3% increase year-on-year, reflecting heightened promotional activities for new titles. Conversely, personnel costs decreased due to staff reductions, and commission fees fell as the share of revenue from proprietary intellectual property games increased.
Looking ahead, Netmarble expects to see the full impact of new releases starting in Q2. The company will launch the PC version of 'Game of Thrones: King's Road' in Asia on May 14, followed by the mobile version on May 21, and a new MMORPG titled 'Soul: Enchant' in June.
In the second half of the year, Netmarble plans to maintain an aggressive release strategy, introducing five new titles sequentially, including 'Solo Leveling: Karma,' 'Shangri-La Frontier: Seven Strongest Species,' 'Project Octopus,' 'Evilbane,' and 'Project Aegis.'
Kim Byung-kyu, CEO of Netmarble, stated, "The first quarter saw limited revenue contributions from major new releases due to their late launch, but we achieved growth in both revenue and operating profit compared to last year, indicating stable business fundamentals. With a diversified portfolio where 79% of revenue comes from international markets, we expect significant growth and improved profitability starting in Q2 as new game sales take effect."
* This article has been translated by AI.
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