Netmarble 4Q 2020 Earnings Results

Key insights

6 takeaways

01
Netmarble achieved 2020 annual revenue of KRW 2,484.8 billion, a 14.0% year-over-year increase, and an operating profit of KRW 272.0 billion, up 34.2%.See it on page 4
02
Overseas markets are the company's primary revenue driver, accounting for 72% of total annual revenue.See it on page 7
03
Fourth-quarter 2020 net profit reached KRW 103.3 billion, significantly bolstered by one-off gains from the listing of Big Hit Entertainment.See it on page 6
04
MMORPGs represent the largest segment of the company's diversified portfolio, contributing 31% of total revenue.See it on page 8
05
Operational efficiency improved in 2020, with the company successfully reducing its commission rate to below 40%.See it on page 9
06
The 2021 growth strategy centers on a global release pipeline featuring Blade & Soul Revolution, Ni no Kuni, and MARVEL Future Revolution.See it on page 10

Summary

Netmarble’s 2020 fiscal year performance reflects significant growth driven by successful global game launches and the expansion of existing titles. The company reported annual revenue of KRW 2,484.8 billion, a 14.0% increase year-over-year, and an operating profit of KRW 272.0 billion, representing a 34.2% rise. This growth was largely attributed to the global performance of titles such as The Seven Deadly Sins: Grand Cross and the successful domestic launch of Seven Knights2.

In the fourth quarter of 2020, the company recorded revenue of KRW 623.9 billion and an operating profit of KRW 82.5 billion. While domestic revenue saw a boost from the release of Seven Knights2, overall operating profit experienced a slight quarter-over-quarter decline due to a decrease in overseas revenue. Notably, the company achieved a significant increase in net profit, which reached KRW 103.3 billion for the quarter, bolstered by one-off gains from the listing of Big Hit Entertainment.

The company maintains a diversified portfolio across RPG, MMORPG, and casual genres, with MMORPGs accounting for 31% of revenue. Overseas markets remain a critical component of the business, contributing 72% of total annual revenue. Operational efficiency improved during the period, as evidenced by a commission rate reduction to below 40%. Looking ahead, the company plans to sustain its momentum through a robust 2021 pipeline, including the global release of titles such as Blade & Soul Revolution, Ni no Kuni, and MARVEL Future Revolution. These financial results are based on consolidated K-IFRS standards and remain subject to final audit outcomes.