Netmarble 3Q 2017 Earnings Results

Netmarble’s third-quarter 2017 earnings report highlights strong financial growth driven by the successful performance of its mobile game portfolio, particularly the MMORPG Lineage 2 Revolution. The company recorded quarterly revenue of 581.7 billion KRW, representing a 62% year-over-year increase and an 8% increase over the previous quarter. Operating profit reached 111.8 billion KRW, a 73% year-over-year rise, while net profit grew by 104% year-over-year to 84.2 billion KRW. These results reflect a robust expansion in both top-line revenue and operational efficiency, maintaining an operating profit margin of 19.2%.

The company’s geographic footprint shifted significantly toward international markets, with overseas revenue accounting for 71% of total earnings. This growth was supported by the performance of Lineage 2 Revolution in Japan and the full-quarter integration of Southeast Asian operations. Regionally, revenue is diversified across Korea (29%), North America (24%), Southeast Asia (19%), and Japan (16%). The game portfolio remains anchored by five major titles, including Lineage 2 Revolution, MARVEL Contest of Champions, Seven Knights, Everybody's Marble, and Cookie Jam, with the MMORPG genre now comprising 46% of total revenue.

Operating costs rose to 469.9 billion KRW, largely due to increased marketing expenditures associated with the Japanese launch of Lineage 2 Revolution and higher labor costs from one-off overtime payments. Looking ahead, the company is focused on sustaining this momentum through upcoming global launches, including the expansion of Lineage 2 Revolution into North America and Europe, as well as the introduction of new titles like Tera M and Fate/Grand Order in the Korean market.