Neowiz reported a 57% decrease in operating profit for the second quarter of this year, impacted by stabilizing sales of major PC and console games and a base effect from downloadable content (DLC) released last year.
On August 12, Neowiz announced that its consolidated revenue for Q2 reached 102.1 billion won, with an operating profit of 7.9 billion won. Revenue decreased by 7.2% compared to the same period last year, while operating profit fell by 57.3%. Compared to the previous quarter, revenue increased by 1%, and operating profit rose by 14%.
By business segment, sales from PC and console games totaled 37.3 billion won, down 35% year-on-year and 6% from the previous quarter. Major titles such as 'Lies of P' and 'Shape of Dreams' have entered a stabilization phase in sales since their release, and the base effect from the DLC 'Lies of P: Prelude,' launched in June of last year, also contributed to the decline.
In contrast, mobile game sales increased to 53.2 billion won, marking a 21% rise year-on-year and a 4% increase from the previous quarter. The mobile segment helped offset some of the overall decline in game revenue.
'Brown Dust 2' saw revenue growth due to a successful three-year anniversary campaign and content updates. 'Cat and Soup' experienced a rebound in user metrics thanks to collaboration with Sanrio IP, along with the initial success of 'Cat and Soup: Magical Recipe,' which was globally launched in April. Other revenue reached 11.6 billion won, a 37% increase compared to the same period last year.
On the same day, Neowiz's board approved the appointment of Park Sung-jun, head of the new game development group, as co-CEO. This change transitions Neowiz to a co-CEO structure with existing CEO Bae Tae-keun.
Park Sung-jun will oversee overall management related to new game development, drawing on his experience leading the development of 'Lies of P.' Bae Tae-keun will focus on managing technology-based new businesses and infrastructure operations. The company plans to concentrate its efforts on discovering new intellectual properties, global publishing, and live game operations through its new game development group, global business group, and live game business group.
* This article has been translated by AI.
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