Netmarble Reports Operating Loss of 104.4 Billion KRW Last Year... First Deficit in 10 Years (Update)

Impact of New Release Delays and Poor Performance of Recent Titles

[Asia Economy Reporter Yuri Choi] Netmarble recorded an operating loss despite increasing sales last year. It is the first time in 10 years since 2012 that Netmarble posted an annual operating deficit. This was due to poor performance of new games and increased operating expenses.

On the 9th, Netmarble announced that its annual sales for 2022 reached 2.6734 trillion KRW, a 6.6% increase compared to the previous year. However, operating loss turned to 104.4 billion KRW. Net loss for the period was 906.3 billion KRW, reflecting impairment due to year-end intangible asset evaluation.

Looking at the fourth quarter of last year alone, sales were 686.9 billion KRW, down 8.7% year-on-year, and operating loss turned to 19.8 billion KRW.

Regarding overseas sales, the annual cumulative amount was 2.2483 trillion KRW. The annual overseas sales ratio increased by 11 percentage points (P) to 84% compared to last year. The North American sales ratio increased by 3%P from the previous quarter due to events such as those for "Marvel Contest of Champions." The sales ratio by region was North America 51%, Korea 15%, Europe 12%, Southeast Asia 8%, Japan 7%, and others 7%.

By genre, as of the fourth quarter, the sales ratio was casual games 48%, role-playing games (RPG) 27%, massively multiplayer online role-playing games (MMORPG) 16%, and others 9%. The RPG sales ratio increased by 3%P from the previous quarter due to updates for "The Seven Deadly Sins: Grand Cross" and "Marvel Contest of Champions."

Netmarble plans to officially release within the year "Paragon: The Overprime," a third-person shooter multiplayer online battle arena (TPS MOBA) game, and the action battle game "Hypesquad" after early access. Additionally, "Modoo Marble 2: Meta World," "Grand Cross W," and "Tower of God: New World" are scheduled for release in the first half of the year, while "Arthdal Chronicles," "Solo Leveling: Arise," "Round Table Knights," and "Seven Knights Finger (tentative)" are under development aiming for release in the second half.

Netmarble CEO Kwon Young-sik said, "Last year, we recorded unsatisfactory results due to delays in new releases and poor performance of launched titles. In this crisis situation, we will thoroughly manage personnel and costs and focus the company's capabilities on selected projects to do our best to ensure that anticipated new titles succeed in the market."