Netmarble 3Q 2021 Earnings Results

Netmarble’s third-quarter 2021 earnings report outlines the company’s financial performance and strategic trajectory within the global gaming market. The primary objective is to detail revenue growth driven by new title launches while addressing the impact of rising operational costs on profitability. The results reflect a period of transition, characterized by the full integration of revenue from major titles alongside increased investment in human capital and marketing.

Financial performance for the quarter showed revenue of KRW 607.0 billion, representing a 5.2% increase quarter-over-quarter, bolstered by the full recognition of Ni no Kuni: Cross Worlds and the launch of MARVEL Future Revolution. Despite this top-line growth, profitability faced significant pressure; operating profit reached KRW 26.6 billion, a 69.6% decline year-over-year, while net profit fell to KRW 35.7 billion. EBITDA stood at KRW 58.5 billion with a 9.6% margin. These figures were influenced by higher commission costs associated with new releases and increased labor expenses following the acquisition of Ludia, which expanded the company’s development workforce.

The company maintains a diversified geographic and genre-based portfolio. North America remains the largest revenue contributor at 34%, followed by Korea at 30%, Japan at 12%, and Southeast Asia at 11%. By genre, MMORPGs dominate the portfolio at 40%, followed by RPGs at 27% and casual games at 22%. Looking forward, the company is focused on expanding its global footprint with upcoming titles such as Seven Knights 2 and Seven Knights Revolution, as well as further global rollouts for Ni no Kuni: Cross Worlds and Merge Fantasy Island scheduled for the first half of 2022. These initiatives underscore a strategic commitment to sustaining momentum through a robust pipeline of new intellectual property.