Netmarble reported a decline in both revenue and operating profit for the third quarter of this year, attributed to delays in new game releases. The company plans to launch 13 new titles next year to recover its performance.
On November 5, Netmarble announced that its consolidated revenue for the third quarter was 634.7 billion won, a decrease of 8.8% compared to the same period last year. Operating profit fell to 50.4 billion won, down 44.6%. Compared to the previous quarter, revenue dropped by 15.3%, and operating profit decreased by 37.1%.
Profitability also worsened, with the operating profit margin falling from 13.1% in the third quarter of last year to 7.9% this year, a decline of 5.2 percentage points. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also fell to 80 billion won, down 34.6% year-on-year.
In terms of revenue by game, 'Soul: Enchant,' released in June, accounted for 8% of total sales in the third quarter, similar to the long-standing 'Marvel Contest of Champions.' Other titles included RF Online Next and Vampire, which contributed 7% and 5% respectively, while 'The Seven Deadly Sins: Origin' and 'The Seven Deadly Sins: Grand Cross' each accounted for 4%. 'Seven Knights: Revolution' and 'Solo Leveling: Arise' each made up 3% of total revenue.
The increase in revenue from 'Soul: Enchant' in the domestic market led to a rise in the share of revenue from massively multiplayer online role-playing games (MMORPGs) from 17% to 25% during the same period.
During the earnings conference call, Netmarble CEO Kim Byung-kyu emphasized that the decision to postpone some new game releases until next year was made to enhance quality rather than simply increase the number of launches. He stated, "We adjusted our development schedule to improve completeness, not just to increase the number of new releases."
Kim added that the process of integrating unique elements into existing genres required additional stability in service, noting that improvements identified from the launches of 'Mongeul: Star Dive' and 'The Seven Deadly Sins: Origin' would be reflected in the development of subsequent titles.
Netmarble plans to introduce over 13 new titles in 2027. In the first quarter of next year, the company aims to launch three games: the collectible RPG 'Shangri-La Frontier: Seven Strongest Species,' the roguelike action RPG 'Solo Leveling: Karma,' and the idle RPG 'WB All-Star Raising.'
Additionally, the company is preparing to release casual roguelike 'Guardian Tales: Dig Dot,' action roguelike 'Wilderlings,' action RPG 'Babel Protocol,' and strategy defense game 'Project D' in the first half of the year.
However, concerns have been raised about whether Netmarble can meet its goal of launching 10 self-published titles next year, following the delays and declining performance this year. Of these, 10 titles must be self-published by Netmarble, excluding three titles from its overseas subsidiaries, including its Chinese branch, which could increase the pressure on the company.
In response, CEO Kim expressed confidence that utilizing an AI-based work system would enable the timely release of multiple new titles. He explained that an AI-native work environment has been established not only for game development but also for launch preparation and overall service operations, making it feasible to release 10 self-published titles next year. Netmarble is also pursuing the launch of 'Solo Leveling: Arise' and 'KOF All-Star' in the Chinese market, aiming to maintain revenue through expanding service regions and updates for existing games while enhancing the impact of new releases.
* This article has been translated by AI.
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