Mgame Reports 101% Increase in Operating Profit Last Year... Game Success Overseas

[Asia Economy Reporter Hyungsoo Park] Mgame announced on the 20th that it recorded sales of 37.7 billion KRW, operating profit of 7.3 billion KRW, and net profit of 8.9 billion KRW on a consolidated basis last year. Compared to the same period last year, sales increased by 39%, and operating profit and net profit increased by 101% and 251%, respectively.

In the fourth quarter of last year, it achieved sales of 12 billion KRW, operating profit of 3.7 billion KRW, and net profit of 5.2 billion KRW. These represent increases of 58%, 336%, and 13,570%, respectively, compared to the same period last year.

The improvement in performance was driven by strong results of flagship online games overseas. China’s "Yeolhyeolgangho Online" has gained popularity through seasonal events and updates such as the Guanggunje and Lunar New Year events. In North America and Turkey, "Night Online" saw an increase in concurrent users after opening a new server in January last year.

Mgame has set a strategy to strengthen services so that the overseas success of online games can continue domestically this year as well. It will rapidly promote in-house development and external partnerships for mobile games utilizing online game intellectual property (IP). The company plans to discover and launch more than three mobile games targeting niche markets not only in the domestic mobile game market but also overseas markets.

The in-house developed online mechanic third-person shooter (TPS) game "Project X" is being developed with the goal of launching on Steam in the second half of this year to target the global online game market. The company expects web board game sales to increase due to partial amendments to the Enforcement Decree of the Game Industry Promotion Act next month and the release of sports betting games in the first half of the year.

CEO Lee-hyung Kwon of Mgame said, "Our main online games are showing good results overseas," and added, "We will successfully renegotiate under better conditions, leading to sustained and elevated overseas sales."

He continued, "We will add revenues from newly published mobile games to the increased sales driven by strengthened domestic online game services and eased regulations on web board games," emphasizing, "We will record growth surpassing last year’s performance."

Mgame is actively working on the domestic and Southeast Asian service of "Jin Yeolhyeolgangho," a highly anticipated mobile MMORPG that succeeds "Yeolhyeolgangho Online." The idle RPGs "Gwihon for Klaytn" and "Princess Maker for Klaytn," developed based on Kakao’s blockchain platform Klaytn, are scheduled for release in the first half of the year. The company continues to conduct research and development related to blockchain games.