South Korean publisher Netmarble experienced a drop in revenue during Q1 2024, attributing the decline to a lack of new game launches. The company generated $440.86 million in Q1, down 2.9% year-over-year and 12% from the previous quarter.

However, operating income rose to $2.78 million during the quarter, a significant improvement from a $20.6 million loss last year. Net losses were reduced to $7.43 million, compared to a $33.9 million loss in Q1 2023.

Financial Breakdown

Overseas revenue made up 83% ($365.26 million) of the company’s total sales. North America was the largest contributor, accounting for 48% of revenue, followed by South Korea (17%), Europe (13%), Southeast Asia and Japan (6%), and the rest of the world (7%).

Netmarble's top revenue-generating games included Jackpot World (10%), Lotsa Slots (9%), and Cash Frenzy (9%)—all titles from its SpinX division, which it acquired for $2.19 billion in 2021.

The publisher's casual games portfolio, including social casino titles from SpinX, was its biggest revenue source, making up 47% of sales. RPGs accounted for 33%, MMORPGs for 9%, and other genres for 11%.

Cost-Cutting Measures

Netmarble has been actively reducing costs in recent quarters. Labor costs fell by 4.3% year-over-year and 1.8% from the previous quarter to ₩179.59 billion ($132.5 million) due to workforce optimization. Marketing costs also decreased by 1.2% year-over-year and 20.5% quarter-on-quarter, reflecting the absence of new game launches.

Upcoming Releases

Netmarble is set to launch the new MMORPG Raven 2 across platforms on May 29, 2024. Additionally, four other titles are scheduled for release in the second half of the year, including The Seven Deadly Sins: Idle Adventure, King Arthur: Legends Rise, RF Online Next, and Demis Re:Born.

"Netmarble achieved operating profit in the first quarter through continuous efforts to streamline costs, despite the absence of newly launched titles," said Netmarble CEO Young-sig Kwon. "Arthdal Chronicles: Three Factions, launched in late April in Korea and Taiwan, and Solo Leveling: ARISE have both shown promising initial results. We will focus all our capabilities on restoring Netmarble's global competitiveness in the gaming business this year."

Netmarble aims to bolster its market position and drive growth with these upcoming releases and continued efforts to optimize costs.

Source: adapted from an article by Craig Chapple, Head of Content for Pocketgamer.biz.