Netmarble 3Q 2024 Earnings Results

Key insights

6 takeaways

01
Netmarble reported 3Q 2024 revenue of KRW 647.3 billion, a 2.6% year-over-year increase but a 17.2% decline quarter-over-quarter due to a lack of major new game launches.See it on page 3
02
Operating profit reached KRW 65.5 billion, supported by a 13.3% quarter-over-quarter reduction in operating costs driven by lower marketing spend, reduced headcount, and decreased commission fees.See it on page 4
03
Overseas markets remain the primary revenue engine, accounting for 77% of total revenue, with North America alone contributing 43%.See it on page 6
04
Revenue is balanced across genres, with casual games at 39%, RPGs at 38%, and MMORPGs at 15%, led by key titles including Solo Leveling:ARISE, MARVEL Contest of Champions, and Jackpot World.See it on page 5
05
The company plans to scale its portfolio with the upcoming release of King Arthur: Legends Rise and the regional expansion of Raven2.See it on page 8
06
Netmarble’s 2025 growth strategy centers on an aggressive pipeline of nine new titles, including Game of Thrones: Kingsroad and The Seven Deadly Sins: Origin.See it on page 8

Summary

Netmarble’s third-quarter 2024 earnings results reflect a period of stabilization following a quarter characterized by the absence of major new game launches. The company reported consolidated revenue of KRW 647.3 billion, representing a 17.2% decrease quarter-over-quarter but a 2.6% increase year-over-year. Operating profit reached KRW 65.5 billion, while net profit stood at KRW 20.6 billion, the latter being impacted by the base effect of asset disposal profits recorded in the previous quarter. EBITDA for the period was KRW 102.8 billion, yielding an EBITDA margin of 15.9%.

The company’s revenue remains geographically diversified, with 77% of total revenue generated from overseas markets, led by North America at 43%. Genre distribution is similarly balanced, with casual games accounting for 39% of revenue, followed closely by RPGs at 38% and MMORPGs at 15%. Key revenue drivers during this period included Solo Leveling:ARISE, which contributed 13% of total revenue, alongside established titles such as MARVEL Contest of Champions, Jackpot World, and Raven2.

Operational efficiency remained a primary focus, as evidenced by a 13.3% quarter-over-quarter reduction in operating costs. This decline was driven by lower marketing expenditures due to the lack of major releases, a slight reduction in headcount affecting labor costs, and lower commission fees corresponding with the revenue dip.

Looking ahead, the company is preparing for a robust expansion of its portfolio. Near-term plans include the release of King Arthur: Legends Rise and the regional expansion of Raven2. The 2025 pipeline is significantly more aggressive, featuring nine new titles including Game of Thrones: Kingsroad and The Seven Deadly Sins: Origin, signaling a strategic shift toward sustained growth through a diversified multi-platform release schedule.