Q2 and H1 Sales Hit Record Highs
China's "Yeolhyeol Gangho Online" and North America/Europe's "Night Online" Drive Growth
Self-Developed Mobile Game Launch Scheduled for H2
Mgame announced on the 11th that it achieved consolidated sales of 17.9 billion KRW, operating profit of 3.7 billion KRW, and net profit of 4.8 billion KRW in the second quarter of this year. This is the largest scale of sales in the second quarter in history. Compared to the same period last year, sales and net profit increased by 35.1% and 22.4%, respectively. Operating profit decreased by 6.4%.
For the first half of this year, sales reached 38.5 billion KRW, operating profit 7.9 billion KRW, and net profit 11 billion KRW. This marks the highest sales for the first half of the year. Compared to the first half of last year, sales and net profit increased by 35.1% and 33.4%, respectively. Operating profit decreased by 14%.
The increase in sales was driven by the PC MMORPGs in China, Yeolhyeol Gangho Online, and in North America and Europe, Knight Online.
Since the opening of new servers for Knight Online in North America and Europe in November last year, sales have increased, which also led to an increase in commissions paid to co-developers. This is the reason for the decrease in operating profit.
Yeolhyeol Gangho Online signed a license agreement in July with Chinese game company Kingnet to utilize graphic resources. The mobile MMORPG Jeonmin Gangho, developed by Kingnet based on the graphics of Yeolhyeol Gangho Online, was released in China on the 2nd and reached number one in the App Store popularity rankings. Mgame received an upfront payment of 2.75 million USD and royalties. Mgame is responsible for the domestic publishing service of the mobile game.
In the second half of the year, China’s Yeolhyeol Gangho Online will implement updates adding a player-versus-player combat system and new pets, as well as major seasonal events such as the Mid-Autumn Festival, National Day, and Singles' Day.
The self-developed idle mobile RPG Queen's Knights will also be released this month. The game focuses on the essence of idle games, allowing anyone to easily enjoy and continuously feel growth. It received positive feedback from users during the beta test on One Store last month, raising expectations.
Mgame will release a new publishing game and GwihonM, an MMORPG based on its side-scrolling MMORPG Gwihon IP, which transfers the existing game’s worldview and characters to mobile.
CEO Kwon Yi-hyung of Mgame said, "Despite the seasonal off-peak period for PC online games in the first half, we achieved record-high sales in both the first and second quarters." He added, "We will release the solidly designed idle mobile game Queen's Knights in the second half, and with the seasonal peak of online games, we expect to achieve results exceeding last year's record-high performance since the company’s founding."
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