Neowiz Reports Q1 Revenue of 68.5 Billion KRW and Operating Profit of 1.3 Billion KRW

Neowiz announced its Q1 2023 earnings on the 11th.

Neowiz's Q1 revenue was 68.5 billion KRW, down 6% from the previous quarter and 11% from the same period last year. Operating profit was 1.3 billion KRW, and net profit was 3.1 billion KRW. Operating profit and net profit turned positive compared to the previous quarter as the incentive effects reflected in Q4 last year were removed and variable costs such as platform fees decreased.

Revenue from the mobile game segment was 32.3 billion KRW, similar to the previous quarter. Although "Goyang-iwa Seupeu" (Cat and Soup) achieved its highest quarterly revenue, the downward stabilization trend in revenue from mobile games in service continued.

Revenue from the PC and console game segment was 27.5 billion KRW, down 12% from the previous quarter due to the sale of the PC publishing business of the Japanese subsidiary GameOn. Other revenue, which includes mobile advertising revenue from the subsidiary T&K Factory, decreased by 5% from the previous quarter to 8.7 billion KRW.

This year, Neowiz signed a local publishing contract with the Chinese game company Kingsoft Xiyou, laying the groundwork for the entry of "Goyang-iwa Seupeu" into China. Through this, Neowiz plans to further expand the global success of "Goyang-iwa Seupeu," which has recorded 40 million cumulative global downloads. The company also secured its lineup by completing an IP license contract for the popular Japanese animation "Dungeon ni Deai wo Motomeru no wa Machigatteiru Darou ka" (Is It Wrong to Try to Pick Up Girls in a Dungeon?), laying the foundation for performance improvement.

Neowiz is expected to focus on self-developed new titles and make visible efforts to strengthen IP (intellectual property). Mobile RPG "Brown Dust 2" and the globally anticipated title "P-ui Geojit" (P’s Lie) are scheduled for release in Q2 and Q3, respectively.

"P-ui Geojit" is collaborating with the IT and hardware community "QuasarZone" to conduct tests for game play optimization and is focusing on final development stages to enhance game completeness, including conducting FGT (Focus Group Testing) for domestic users. The company is also actively promoting the game by participating in various global gamer events.

Neowiz’s subculture game "Brown Dust 2" is updating its combat system, speed improvements, and convenience enhancements by actively reflecting user feedback obtained from global pre-tests.

The launch of the Web3 blockchain game platform "Intella X" is also upcoming. Intella X is a user-friendly platform that anyone can easily enjoy. On May 3rd, it announced the "Intella X Web3 Gaming Grant Program" worth 10 million USD. The program aims to discover Web3 game developers to join the Intella X ecosystem and provide full support throughout the entire process from game development to onboarding.