Webzen Reports Q3 Operating Profit of 10 Billion KRW, Down 42% YoY

Webzen's third-quarter earnings declined due to the absence of new releases and other factors.

On the 8th, Webzen announced that its third-quarter sales reached 40.3 billion KRW, with an operating profit of 10 billion KRW. Compared to the previous year, sales decreased by 32.2%, and operating profit fell by 42.3%.

Net profit for the period was 11.1 billion KRW, down 40.5% year-over-year.

The decline in Webzen's third-quarter performance is largely attributed to a reduced number of new game launches. In the fourth quarter, the start of services for publishing and IP partnership games is expected to serve as a turning point for a performance rebound.

The ‘MU’ IP partnership game ‘MU Monarch,’ released in October, has maintained a position within the top 10 on Google’s revenue rankings for over three weeks.

Webzen’s efforts to expand its market share in subculture games are also yielding results. The subculture game ‘I Want to Become a Dark Competent Person,’ launched in October, has received positive responses from domestic subculture and collection RPG gamers, laying the groundwork for long-term service of the game.

In November, Webzen will set up a large exhibition booth at ‘G-STAR 2023’ to showcase subculture games developed in-house. The subsidiary ‘Webzen Nova’ will present ‘Tervis,’ a playable demo version for visitors to experience at the event.

‘Tervis’ is a new development project with the motto of creating a ‘2D Japanimation-style collection RPG,’ aiming for a game release in the first half of 2024. The project targets not only the domestic market but also expansion into Japan and China, the heartlands of the subculture genre.

Additionally, the core affiliate ‘Webzen Redcore’ is developing an MMORPG (Massively Multiplayer Online Role-Playing Game) based on Unreal Engine 5.

Kim Tae-young, CEO of Webzen, stated, “Our development and business efforts to increase our influence in the subculture game market are showing results, and we are preparing new MMORPG titles with a strong member base. After finalizing several undisclosed external investment and publishing contracts currently under negotiation, we will secure robust growth potential and execute our mid- to long-term strategies.”