Netmarble 2Q 2024 Earnings Results

Netmarble’s second-quarter 2024 earnings report highlights a period of significant financial growth, characterized by the company achieving its highest quarterly revenue and EBITDA since its initial public offering. Revenue reached KRW 782.1 billion, representing a 33.6% increase quarter-over-quarter and a 29.6% increase year-over-year. EBITDA surged to KRW 151.1 billion, yielding a 19.3% margin, while operating profit reached KRW 111.2 billion. This performance was driven primarily by the successful launch of new titles, most notably Solo Leveling:ARISE, which accounted for 20% of total revenue.

The company’s revenue portfolio remains geographically diverse, with North America leading at 40% of total revenue, followed by Korea at 24%. By genre, RPGs dominate the portfolio at 45%, followed by casual games at 34%. The recent growth in the Korean market and the RPG segment is attributed to the strategic release of new content. Net profit for the quarter was bolstered by non-operating income derived from the liquidation of holding assets, resulting in a net profit of KRW 162.3 billion.

Operational efficiency remains a core focus, with the company reporting a sustained improvement in its cost structure since 2022. Commission rates have declined due to the expansion of PC-based revenue through proprietary launchers, and marketing efficiency has been optimized despite increased spending to support new game launches. Looking ahead to the second half of 2024, the company plans to maintain this momentum by launching four additional titles, including The Seven Deadly Sins: Idle Adventure and RF Online Next, across mobile, PC, and console platforms.