Wemade has returned to operating profit.
Wemade said in a regulatory filing Monday that its first-quarter operating profit came in at 8.5 billion won on a consolidated basis, swinging to a profit from an operating loss of 11.3 billion won a year earlier, according to preliminary results. Revenue rose 8.1% year-on-year to 153.3 billion won. Net profit also turned positive at 19.9 billion won.
The company posted its third consecutive quarterly profit, following gains in the third and fourth quarters of last year. By segment, revenue reached approximately 115.2 billion won from games, 30.5 billion won from licensing and 7.5 billion won from blockchain.
Game revenue declined from the previous quarter, but results were supported by licensing revenue reflecting the resolution of an intellectual property (IP) royalty dispute with China's Kingnet over "The Legend of Mir 2."
Blockchain revenue climbed 17% from the previous quarter, extending its growth momentum, and surged 867% year-on-year. The increase was driven by the activation of the WEMIX-based economic system within "Legend of Ymir," which was launched in global markets last October.
Wemade said it is preparing about 20 new titles across various genres, including MMORPG, casual and subculture, through its headquarters and subsidiaries. Starting with a new title based on the "Night Crows" IP scheduled for release in the second half of this year, the company plans to roll out major games annually, including its first global console blockbuster "Project TAL." In the blockchain business, Wemade is focusing on building and expanding its ecosystem, with the top priority of ensuring WEMIX functions as an effective utility within game platforms and gameplay.
Meanwhile, Wemade's subsidiary Wemade Max disclosed the same day that it posted first-quarter revenue of 32.68 billion won, an operating loss of 15.348 billion won and a net loss of 11.1 billion won on a consolidated basis. The operating loss widened by about 541% from a year earlier due to increased investment and payment fees. Revenue fell 30.63% year-on-year. Wemade Max said it plans to secure new growth drivers based on existing games and new projects.
