Netmarble Ends 2022 with Net Loss of $714 Million

Key insights

7 takeaways

01
Netmarble reported a net loss of ₩906 billion ($714.8 million) in 2022, a sharp reversal from the ₩249 billion ($196.4 million) profit recorded in 2021.
02
Despite the net loss, total annual revenue grew 6.6% year-over-year to reach ₩2.67 trillion ($2.1 billion).
03
The company’s EBITDA declined by 57.6% year-over-year to ₩127.8 billion ($100.8 million), reflecting significant pressure on operational profitability.
04
International markets remain critical to the company's business model, accounting for 84% of total annual revenue.
05
Casual games dominated Q4 2022 revenue at 48%, followed by RPGs at 27% and MMORPGs at 16%.
06
Marvel Contest of Champions was the company's top-performing title in Q4 2022, contributing 13% of quarterly revenue.
07
The substantial net loss was primarily driven by impairment charges related to intangible assets.

Summary

Netmarble’s 2022 financial performance highlights a significant period of volatility for the South Korean mobile developer and publisher. Despite achieving a 6.6% year-over-year increase in total revenue, which reached ₩2.67 trillion ($2.1 billion), the company recorded a substantial net loss of ₩906 billion ($714.8 million). This represents a sharp reversal from the ₩249 billion ($196.4 million) net profit reported in 2021. The company attributed these losses primarily to impairment charges related to intangible assets.

Operational profitability also faced downward pressure throughout the year. EBITDA fell by 57.6% compared to the previous year, settling at ₩127.8 billion ($100.8 million). While the company maintains a strong international presence, with overseas markets contributing 84% of its total annual revenue, the bottom-line results reflect broader industry challenges impacting major game publishers.

The revenue composition for the final quarter of 2022 was dominated by casual games, which accounted for 48% of total earnings, followed by RPGs at 27% and MMORPGs at 16%. Marvel Contest of Champions remained the company’s top-performing title, generating 13% of quarterly revenue. Other significant contributors included Jackpot World, Cash Frenzy, Lotsa Slots, The Seven Deadly Sins: Grand Cross, and Ni no Kuni: Cross Worlds. These findings underscore a reliance on a diverse portfolio of established mobile titles to sustain revenue streams amidst significant corporate financial restructuring.