Netmarble 1Q 2025 Earnings Results

Key insights

7 takeaways

01
Netmarble reported Q1 2025 revenue of KRW 623.9 billion, a 6.6% year-over-year increase driven by the launch of RF ONLINE NEXT and the performance of Solo Leveling: ARISE.See it on page 3
02
EBITDA grew by 91.1% year-over-year to KRW 81.6 billion, achieving an EBITDA margin of 13.1%.See it on page 3
03
Net profit reached KRW 80.2 billion, bolstered by the absence of the intangible asset impairment losses that affected previous financial periods.See it on page 4
04
Operating costs decreased by 6.5% quarter-over-quarter to KRW 574.2 billion, aided by reduced commission fees from higher in-house IP sales and lower labor costs.See it on page 7
05
The company’s revenue remains geographically concentrated in North America (46%), followed by Korea (18%) and Europe (14%).See it on page 6
06
Netmarble’s portfolio is led by casual games (42%), followed by RPGs (36%) and MMORPGs (14%).See it on page 5
07
The 2025 development pipeline includes three releases in Q2—Seven Knights Re:BIRTH, Game of Thrones: Kingsroad, and The King of Fighters AFK—followed by five additional titles in the second half of the year.See it on page 8

Summary

Netmarble’s first-quarter 2025 earnings report outlines a period of financial recovery and operational stabilization. The company reported revenue of KRW 623.9 billion, representing a 6.6% increase year-over-year, driven primarily by the successful launch of RF ONLINE NEXT and the sustained performance of established titles such as Solo Leveling: ARISE. EBITDA reached KRW 81.6 billion, a significant 91.1% increase compared to the same period last year, resulting in an EBITDA margin of 13.1%. Net profit reached KRW 80.2 billion, a notable improvement over the previous quarter, largely attributed to the absence of impairment losses on intangible assets that impacted prior results.

The company’s cost management strategy yielded positive results, with total operating costs decreasing by 6.5% quarter-over-quarter to KRW 574.2 billion. This reduction was supported by lower commission fees due to a higher proportion of in-house intellectual property sales, as well as disciplined marketing expenditures and a decrease in labor costs following workforce adjustments. Revenue remains geographically diversified, with North America serving as the largest market at 46%, followed by Korea at 18% and Europe at 14%. By genre, casual games continue to lead the portfolio at 42%, followed by RPGs at 36% and MMORPGs at 14%.

Looking ahead, Netmarble maintains an active development pipeline to sustain growth throughout 2025. The second quarter features the scheduled releases of Seven Knights Re:BIRTH, Game of Thrones: Kingsroad, and The King of Fighters AFK. The second half of the year is slated for the introduction of five additional titles, including The Seven Deadly Sins: Origin and Project SOL. These initiatives reflect a strategic focus on expanding the company’s presence across mobile, PC, and console platforms to capture broader global audiences.