Netmarble, a major South Korean game developer and publisher, has announced a 120.5 billion KRW ($92.5 million) net loss in their Q2 2022 report. The company had declared a net profit of 48.2 billion KRW ($36.2 million) in the same quarter last year.
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Compared with the same quarter from last year, the net revenue of the company increased by 14.4%, as Netmarble earned 660.6 billion KRW ($535.95 million).
The company’s operating loss has been declared as 34.7 billion KRW ($25.8 million). This is a significant change compared to last year’s operating profit of 16.2 billion KRW ($12 million).
The report states two leading causes for this loss. Even though the launch of new titles assisted revenue growth, they also caused a considerable increase in marketing expenses and caused the EBITDA to plummet to 3.3%.
Year-over-year EBITDA has seen a 48.6% decrease with 21.5 billion KRW ($17.46 million) in earnings. The second reason of this decrease has been identified as the exchange rate, causing “higher borrowing-related losses,” among other handicaps.
In Netmarble’s Q1 2022 report, Ni no Kuni: Cross Worlds, the company’s latest massively multiplayer online role-playing game, had decreased the revenue ratio of the genre by 7% quarter-over-quarter due to the decrease in sales. The company declared that the game assisted in revenue growth in this recent report.
According to the report, overseas revenue has increased by 1% quarter-over-quarter and now covers 85% of the total at 558.5 billion KRW ($418.7 million). Regional diversification in revenue has been stated as follows:
- U.S. 49%
- Korea 15%
- Europe 12%
- SEA 11%
- Japan 8%
- Other 5%
The revenue breakdown for genres brought along a considerable gap, with casual games taking the lead at 47%, MMORPG and RPG games at 22% each, and others at 9%.
The top revenue generators of the company had even numbers, with Ni no Kuni: Cross Worlds and MARVEL Contest of Champions leading the way at 10%, followed closely by Cash Frenzy, Jackpot World, and Lotsa Slot with 8%, and The Seven Deadly Sins: Grand Cross coming up last at 7% revenue.
Netmarble will launch three more games in the second half of 2022, and these are “Monster Arena Ultimate Battle,” “BTS Dream: TinyTAN House,” and “King of Fighters: Arena.”
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