Netmarble (251270.KS) reported a 6.8% year-on-year increase in first-quarter operating profit, driven by the launch of new titles including "StoneAge Idle" and "The Seven Deadly Sins: Origin."
The company posted consolidated operating profit of 53.1 billion won ($38.7 million) in the first quarter, according to a preliminary regulatory filing Wednesday. Revenue rose 4.5% from a year earlier to 651.7 billion won, while net profit surged 163% to 210.9 billion won.
The company said revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) edged up year-on-year on the back of new releases such as "StoneAge Idle" and "The Seven Deadly Sins: Origin." However, results declined from the previous quarter as the major new titles launched near the end of the quarter. First-quarter revenue and operating profit fell 18.3% and 52.1% q-o-q, respectively. Net profit also rose as gains from asset sales were reflected.
Netmarble projected full-fledged revenue growth starting in the second quarter, when the full impact of new title sales will be reflected. The company plans to roll out "Game of Thrones: Kingsroad" in Asia in May, followed by the highly anticipated "SOL: enchant" in June. In the second half, it plans to release five additional new titles: "Solo Leveling: KARMA," "Shangri-La Frontier: Seven Strongest Species," "Project Octopus," "Evilbane," and "Project Aegis."
Overseas markets accounted for 79% of first-quarter revenue. By region, North America represented 41%, Korea 21%, Europe 13%, Southeast Asia 12%, and Japan 7%. By game intellectual property (IP), "Jackpot World," "Lotsa Slots," "Marvel Contest of Champions," and "Cash Frenzy" each contributed 8%, followed by "Seven Knights Re:Birth" at 7%, "Vampire" at 6%, and "The Seven Deadly Sins: Grand Cross" at 5%. "The Seven Deadly Sins: Origin" and "StoneAge Idle," both released in March near the end of the quarter, each accounted for 3%.
"Based on a diversified portfolio with global sales accounting for 79%, we expect new title sales to be fully reflected from the second quarter, driving both top-line growth and profitability improvement," Netmarble CEO Kim Byung-kyu said. "This year is a critical period during which new titles based on various genres and global IPs will be released sequentially. We will focus on stably launching competitive new titles and securing sustainable growth drivers in the global market."
