Netmarble 2Q 2020 Earnings Results

Key insights

6 takeaways

01
Netmarble reported 685.7 billion KRW in Q2 2020 revenue, a 30.3% year-over-year increase, with operating profit surging 146.1% to 81.7 billion KRW.See it on page 2
02
International markets generated 75% of total revenue, with North America serving as the primary region at 36% of total earnings.See it on page 6
03
The Seven Deadly Sins: Grand Cross was the top-performing title, accounting for 21% of total quarterly revenue.See it on page 7
04
The company maintains a diversified genre portfolio led by RPGs at 41%, followed by MMORPGs and casual games at 25% each.See it on page 7
05
Operating costs rose to 604 billion KRW, driven by increased marketing spend in North America and expanded headcount in overseas studios.See it on page 8
06
The second-half 2020 pipeline includes the launch of major titles such as Magumagu 2020, BTS Universe Story, Seven Knights 2, and MARVEL Realm of Champions.See it on page 9

Summary

Netmarble’s second-quarter 2020 earnings results demonstrate significant financial growth, driven by the successful performance of new and existing game titles. The company reported quarterly revenue of 685.7 billion KRW, representing a 30.3% increase year-over-year and a 28.7% increase quarter-over-quarter. Operating profit reached 81.7 billion KRW, marking a substantial 146.1% year-over-year improvement, while net profit rose to 85.2 billion KRW. These gains are attributed to the full-quarter reflection of titles launched in the first quarter and the successful release of new content in the second quarter.

The company maintains a strong international presence, with overseas revenue accounting for 75% of total earnings. North America remains the largest regional market at 36%, followed by Korea at 25%, Europe at 12%, and Southeast Asia at 11%. This geographic diversification is supported by a balanced genre portfolio consisting of RPGs (41%), MMORPGs (25%), and casual games (25%). Key revenue drivers include The Seven Deadly Sins: Grand Cross, which contributed 21% of total revenue, alongside MARVEL Contest of Champions and Blade & Soul Revolution.

Operating costs for the period totaled 604 billion KRW, reflecting increased investment in marketing—particularly within North American markets—and expanded headcount in overseas studios. Looking ahead to the second half of 2020, the company’s strategic roadmap includes the release of several high-profile titles, such as Magumagu 2020, BTS Universe Story, Seven Knights2, and MARVEL Realm of Champions. These results are presented on a consolidated basis under K-IFRS and highlight the company's ongoing focus on global expansion and diversified game development.