Wemade Reports Operating Loss of 3.3 Billion KRW in 2Q... Turns to Deficit

Sales Decrease 26% Year-on-Year to 25.1 Billion Won

[Asia Economy Reporter Jin-gyu Lee] Wemade announced on the 12th that it recorded sales of 25.1 billion KRW, an operating loss of 3.3 billion KRW, and a net loss of 5.2 billion KRW in the second quarter.

Sales decreased by 26% compared to the same period last year, and the company turned to an operating loss. Wemade stated, "This quarter, operating losses occurred due to a decline in sales of existing mobile games."

In the first half of the year, Wemade achieved a significant victory in the legal dispute related to the intellectual property (IP) of "Mir 2" (Legend of Mir 2). It received a complete arbitration ruling in its favor against Shengqu Games (formerly Shanda Games) in Singapore, and also obtained damage compensation rulings in lawsuits against 37Games and subsidiaries of Kingnet.

Wemade plans to sequentially release new mobile games starting with "Mir4" in the second half of the year, followed by "MirM" and "MirW." Mir4 enhances immersion by adding an exciting scenario to the Legend of Mir universe, and is expected to offer users upgraded enjoyment through its splendid graphics and high-quality content.

In addition, new games are being developed through subsidiaries. New lineups are being prepared, including Joymax's "Star Wars: Starfighter Mission" and Plerogames' "Abyssrium World."

Wemade plans to focus its capabilities on expanding IP license sales, including receiving damage compensation, and securing stable revenue sources through new releases.