Changed Netmarble, Will It Escape Deficit?

Netmarble, which has been running at a loss since last year, has laid the groundwork for a turnaround. With its new release performing better than expected, it is anticipated that the company will return to profitability within the year.

On the 13th, Netmarble's new game, "Seven Knights Raising," ranked 2nd in revenue on the Google Play Store and 1st on the Apple App Store. Released on the 6th, "Seven Knights Raising" is a mobile idle RPG game based on the company's flagship IP, "Seven Knights."

Initially, expectations for "Seven Knights Raising" were not high. In the domestic market, MMORPGs boasting flashy graphics and impactful combat have become mainstream. However, this very aspect worked in favor of attracting users. Players tired of MMORPGs, which have relatively high entry barriers and require significant effort, responded positively to "Seven Knights Raising," which emphasizes "low capacity," "low specifications," and "easy gameplay."

"Seven Knights Raising" ranked within the top 5 in popularity not only in Korea but also in major Asian countries such as Taiwan, Thailand, and Japan. In Thailand, as of the 11th, it ranked 8th in revenue on the Google Play Store and 3rd on the Apple App Store.

The better-than-expected performance of "Seven Knights Raising" has increased the likelihood of Netmarble returning to profitability sooner. Netmarble has recorded operating losses for six consecutive quarters. In the second quarter, the operating loss widened to 37.2 billion KRW.

However, with the decent performance of "Tower of God: New World," released in July, and the success of "Seven Knights Raising," it is expected that the operating loss in the third quarter will be significantly reduced. The securities industry forecasts that the operating loss will decrease from 37.2 billion KRW in the second quarter to 11.8 billion KRW in the third quarter.

As expectations for an early return to profitability rise, the market has responded positively. Netmarble's stock price rose by 8.8% and 14.4% on the 11th and 12th, respectively. In just two days, Netmarble's market capitalization increased by 893.9 billion KRW.

Netmarble is confident about turning a profit within the year. In the fourth quarter, releases such as "Solo Leveling," "King Arthur," and "Arthdal Chronicles" are scheduled. In China, "The Seven Deadly Sins" and "Ni no Kuni" are planned for release. In November, the company plans to showcase an unreleased new title at G-Star, Korea's largest game show, to heighten anticipation for its new releases.