Netmarble, which recorded a loss last year, continued to incur operating losses in the first quarter of this year. However, the company plans to improve its performance by launching a total of 14 new titles this year.
Netmarble announced on the 11th that it recorded sales of 602.6 billion KRW and an operating loss of 28.2 billion KRW in the first quarter of this year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at 20.1 billion KRW. The net loss for the period was 45.8 billion KRW, with the scale of net loss decreasing due to an increase in non-operating income and expenses as a result of the non-occurrence of intangible asset impairment costs reflected in the previous quarter.
Overseas sales amounted to 504.3 billion KRW, accounting for 84% of total sales, a 1 percentage point decrease compared to the previous quarter. The sales composition by region continued a diversified portfolio with North America at 48%, Korea 16%, Europe 13%, Southeast Asia 10%, and Japan 7%.
Netmarble streamlined operating expenses, with first-quarter operating expenses decreasing by 11.3% compared to the previous quarter to 630.8 billion KRW. Among these, labor costs were 187.5 billion KRW, down 7.4% from the previous quarter. Marketing expenses also significantly decreased. First-quarter marketing expenses were 100.3 billion KRW, down 11.1% year-on-year and 17.9% quarter-on-quarter. Netmarble plans to continue streamlining operating expenses despite the scheduled launch of multiple new titles in the second half of the year.
Starting from the second quarter, Netmarble aims to rebound its game business in earnest in the second half of the year with the release of anticipated new titles. Including five games that have received 'panho' (game service licenses) in the Chinese market, a total of 14 games will be launched this year.
Titles such as 'The Seven Deadly Sins' and 'Second Country: Crossworlds,' which will be released in China, are undergoing localization work for over a year in cooperation with local developers and publishers.
Netmarble CEO Kwon Young-sik said during the first-quarter earnings conference call, "We have prepared by considering the details and emotional aspects of the Chinese market, and we expect good results this year," adding, "There are high expectations for all games to be released this year."
Additionally, Netmarble plans to release the metaverse-based real estate and board game 'Modoo Marble 2: Meta World' in Korea and Japan within this year.
CEO Kwon stated, "'Modoo Marble 2: Meta World' was globally released, but it is currently impossible to launch in the core countries of Korea and Japan, so it was released mainly in Thailand," adding, "Thailand is showing indicators at the planned level, and we plan to gradually carry out marketing for the U.S. market."
He further added, "We plan to additionally launch in Korea and Japan within this year," and "A proper launch centered on the U.S. and Korea in the second half of the year will have a positive impact on sales."
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