Financial

NEOWIZ Q3 2024 Earnings Results Presentation

1 November 20248 pages926 words

Summary

The report presents NEOWIZ’s financial performance for the third quarter of 2024, emphasizing revenue composition, expense trends, and strategic initiatives. Overall revenue reached KRW 93.1 billion, marking a 20.7 % year‑over‑year decline yet a 7.0 % quarter‑over‑quarter increase. PC/Console sales fell sharply, down 33.1 % YoY to KRW 36.9 billion, while mobile revenue grew 19.7 % QoQ to KRW 45.7 billion, driven by seasonal events and the launch of “The Legend of Heroes: Gagharv Trilogy.” Non‑gaming income contributed KRW 10.6 billion, up 11.7 % YoY but down 9.2 % QoQ due to reduced advertising earnings from subsidiary TNK FACTORY. Operating expenses totaled KRW 86.7 billion, a 10.9 % YoY reduction but a 5.4 % rise QoQ. Labor costs fell modestly, whereas variable costs rose 14.3 % QoQ because of higher platform commissions on new mobile titles, and marketing outlays increased 26.0 % QoQ to support the trilogy launch. The company recorded an operating profit of KRW 6.5 billion but posted a net loss of KRW 1.4 billion, reflecting elevated financial expenses and a modest decline in other income. Geographically, revenue was split roughly 40 % domestic and 60 % international, with the strongest contributions from Asian and European markets. The quarter’s financial statements cover the period ending November 2024 and are prepared under consolidated K‑IFRS standards. A notable strategic development was the signing of a global publishing agreement with Polish studio Zakazane, aimed at expanding NEOWIZ’s PC/Console portfolio and strengthening narrative‑driven IP. The data set draws from internal accounting records and reflects the company’s consolidated financial position, assets, liabilities, and equity as of the reporting date.

Pages

View all

Citation

Generating citation...

Similar Documents

Financial

Q3 2024 Financial Results

The financial results for the third quarter of 2024 reveal a period of stabilization and shifting cost structures within the gaming portfolio. Revenue for the quarter reached $111 million, reflecting a 5% increase from the previous quarter but an 8% decline compared to the same period in 2023. Profitability showed significant recovery from a net loss of $3 million in the first quarter of 2024 to a profit of $15 million in the third quarter, while Adjusted EBITDA remained steady at $16 million. Operating metrics indicate a transition in user engagement and monetization. Monthly Paying Users (MPUs) grew to 381,000, a 21% increase year-over-year, though Average Bookings Per Paying User (ABPPU) declined by 11% to $92. Total bookings for the quarter stood at $108 million, showing a 6% year-over-year decrease but remaining relatively flat compared to the first half of 2024. The geographic distribution of revenue remains concentrated in the United States at 53%, followed by Europe at 22% and Asia at 14%. The product portfolio is led by the Hero Wars franchise, with Hero Wars: Alliance and Hero Wars: Dominion Era accounting for 37% and 34% of revenue, respectively. Island Hoppers has emerged as a significant contributor, growing its revenue share from 4% in Q3 2023 to 7% in Q3 2024. Platform distribution remains dominated by mobile at 62%, with PC contributing 38%. Cost management efforts are evident in the reduction of total costs and expenses (excluding depreciation and amortization) to $94 million, down 13% from the prior year, driven largely by a decrease in selling and marketing expenses which now represent 25% of the cost base.

market-analysis investment global

GDevNov 2024

Financial

Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2024

KLab Inc. experienced significant financial contraction during the first nine months of fiscal year 2024, reporting a 27.5% year-over-year revenue decline to 6.06 billion yen. This downturn resulted in an operating loss of 1.11 billion yen and a net loss of 1.76 billion yen, driven primarily by a reduced title portfolio and rising software-in-progress costs. While core titles such as BLEACH Brave Souls and the new release Haikyu!! Fly High maintained steady performance, the overall fiscal health was strained by three consecutive years of operating deficits and a shift to negative retained earnings. The company’s strategic focus remains centered on its Game Business, which generated a segment profit of 709.7 million yen despite the broader corporate losses. To stabilize its capital position, the firm issued new stock acquisition rights and bonds, contributing to a 723 million yen increase in capital stock and surplus. Management has prioritized liquidity through the sale of investment securities and the pursuit of institutional funding, while simultaneously pivoting the development pipeline toward hybrid casual games to diversify revenue streams. Despite current volatility and the withholding of a full-year forecast due to uncertainty surrounding the global launch of EA SPORTS FC™ TACTICAL, leadership maintains confidence in the organization's status as a going concern. This outlook is supported by a robust pipeline of major intellectual property titles and aggressive cost-reduction measures. While intangible assets have grown to 6.65 billion yen due to ongoing development projects, the company’s ability to achieve a turnaround remains contingent on the successful execution of its upcoming global releases and the stabilization of its cash flow through these new strategic initiatives.

investment market-analysis japan+1

KLabNov 2024

Report

Q2 2024 Financial Results

The second quarter 2024 financial results for the organization reveal a period of strategic transition characterized by a slight decline in revenue alongside a significant recovery in profitability. Revenue for the quarter reached $106 million, representing an 8% year-over-year decrease. However, the company reported a net profit of $15 million, a substantial improvement from the $1 million loss recorded in the first quarter of 2024. Adjusted EBITDA followed a similar trajectory, rising to $16 million in the second quarter after a negative $3 million result in the previous period. Operating metrics indicate a stabilizing user base with 381,000 monthly paying users, consistent with the first quarter but down from 392,000 in the prior year. Average bookings per paying user stood at $88, reflecting a 6% year-over-year decline. The company’s portfolio remains heavily reliant on the Hero Wars franchise, with Hero Wars: Alliance and Hero Wars: Dominion Era accounting for a combined 89% of revenue. Geographically, the United States remains the primary market at 51% of revenue, followed by Europe at 22% and Asia at 15%. Strategic highlights for the period include the successful launch of Pixel Gun 3D on PC via Steam, which recouped development costs on its first day without dedicated marketing spend. Additionally, a high-profile collaboration between Hero Wars and the Tomb Raider brand drove a 25% year-over-year increase in new payers during the month of the campaign. While mobile remains the dominant platform at 58% of revenue, the PC segment grew to 42%, up from 38% in the same period last year, signaling a successful push toward platform diversification. These unaudited results suggest that while top-line growth remains pressured, disciplined cost management and brand collaborations are effectively supporting the bottom line.

investment global market-analysis

GDevSept 2024

Financial

FY2024 Third Quarter Financial Results

The third quarter of fiscal year 2024 was characterized by significant financial growth, with consolidated net sales reaching ¥17.2 billion and operating profit surging 211% quarter-over-quarter to ¥2.5 billion. This performance was primarily anchored by the Game and Anime segment, which generated ¥13.0 billion in sales. The success of major live service events, specifically the second anniversary of Heaven Burns Red, served as the primary catalyst for this expansion. Based on these results, the company revised its dividend policy upward to a 3% Dividend on Equity and a 30% payout ratio, signaling confidence in reaching the upper end of its full-year operating profit forecast of ¥4.0 to ¥6.0 billion. Strategic shifts are evident across the Metaverse and DX segments as the organization streamlines its operations. The Metaverse business reported an operating profit of ¥0.08 billion despite a slight sales decline following the transfer of B2B operations to the DX unit. While the Commerce segment faced headwinds due to search algorithm updates affecting media traffic, the DX business grew 14% quarter-over-quarter, supported by a robust backlog of support projects and the expansion of the jobda recruiting platform. Looking toward fiscal year 2026, the pipeline includes 18 scheduled titles and medium-term operating profit targets of ¥1.9 billion for Metaverse and ¥3.3 billion for Commerce. The financial foundation remains stable, supported by a net cash position of ¥32.2 billion and a high-performing investment portfolio valued at ¥33.0 billion. With an internal rate of return of 18%, the investment business continues to outperform domestic venture capital benchmarks through its stakes in U.S. funds and various startups. Although a reactive decline in gaming revenue is anticipated for the fourth quarter, the combination of a stabilized headcount of 1,610 employees and a diversified revenue stream across digital transformation and entertainment sectors positions the group for sustained long-term growth.

market-analysis investment japan+1

GREEMay 2024

Financial

Nexon Q3 2024 Earnings Release

**Nexon Co., Ltd. – Q3 2024 Earnings Press Release (Nov 12 2024)** --- ### 1. Core Financial Results (Q3 2024, ended Sept 30 2024) | Metric | FY 2024 Q3 | YoY Change | Constant‑Currency (CC) | |--------|------------|------------|------------------------| | **Revenue** | ¥135.6 bn | **+13 %** (as‑reported) / **+12 %** (CC) | Slightly below outlook (FX headwind) | | **Operating Income** | ¥51.5 bn | **+11 %** (as‑reported) / **+10 %** (CC) | Within expected range | | **Net Income** | ¥27.0 bn | **‑23 %** (as‑reported) / **‑24 %** (CC) | Impacted by ¥19.6 bn FX loss | | **FX Impact** | – | Revenue hit by adverse yen movements; FX loss drove net‑income decline | *All figures are in Japanese yen (¥).* --- ### 2. Growth Drivers & Franchise Performance | Franchise | Q3 2024 Growth | Highlights | |-----------|----------------|------------| | **Dungeon & Fighter (DnF)** | **+142 % YoY** (overall franchise) | • Launch of **DnF Mobile in China** (May 21) • New updates & “New Year” content for both mobile & PC in China (Q4 2024 / Q1 2025) • Upcoming titles: *The First Berserker: Khazan*, *DnF: Arad*, *Project OVERKILL* | | **MapleStory** | **+23 % YoY** (outside Korea) | • Outside‑Korea revenue > 40 % of total • Record Q3 sales in Japan, NA, EU & Rest‑of‑World (hyper‑localization) • Soft‑launch of **MapleStory Worlds** (NA & SA) • Large Q4 test for **MapleStory N** (PC MMORPG with blockchain) | | **FC (Fighting‑Club) Franchise** | Slight decline YoY (tough comparison to record Q3 2023) | • Expect double‑digit YoY growth in Q4 2024 • Full‑year revenue projected near 2023 record | | **New IP – The First Descendant** | Strong start (July launch) | • ~75 % of global revenue from Western markets • Ongoing updates planned to cement it as a “consistent contributor” | --- ### 3. Strategic Initiatives | Initiative | Focus | Key Actions | |------------|-------|-------------| | **Vertical Growth Initiative** | Deepen existing franchises | • Product extensions, new platforms, regional expansion, hyper‑localization • New titles & major content updates (see DnF & MapleStory) | | **Horizontal Growth Initiative** | Add new pillars to the portfolio | • **Shooters** – *The First Descendant*, *THE FINALS* (Season 5 in Dec), *ARC Raiders* (public test Oct, release 2025) <br

investment market-analysis south-korea+1

Nexon Co., Ltd.Nov 2024

Financial

Summary of Financial Results for First Quarter of Fiscal Year Ended December 31, 2024

KLab Inc. reports a significant downturn in financial performance for the first quarter of the fiscal year ending December 31, 2024. Revenue fell 45.3% year-over-year to 1,581 million yen, resulting in an operating loss of 658 million yen and a net loss attributable to owners of the parent of 1,096 million yen. This decline is primarily driven by the game business, where income from paid users dropped by nearly half compared to the previous year. Consequently, the company has withheld consolidated performance forecasts for the remainder of the year, citing the difficulty of making reasonable calculations. The geographic scope of these results is centered on Japan, covering the three-month period from January 1 to March 31, 2024. A notable structural change occurred during this period as the company sold a portion of its shares in BLOCKSMITH&Co., leading to the exclusion of the blockchain-related business from its reported segments. To address liquidity needs, the company executed a third-party allotment of new stock acquisition rights and unsecured bonds in April 2024, aiming to raise approximately 2.9 billion yen. Despite three consecutive years of operating deficits and negative cash flows, management maintains that there is no material uncertainty regarding the company's ability to continue as a going concern. The recovery strategy focuses on the development of high-profile titles, such as EA SPORTS FC™ TACTICAL and a project based on the My Hero Academia IP, alongside a shift toward hybrid casual games. Cost-reduction measures, including the rationalization of personnel and outsourcing expenses, are being implemented in tandem with the sale of investment securities to stabilize the financial base.

investment funding market-analysis+2

KLabMay 2024

NEOWIZ Q3 2024 Earnings Results Presentation

Summary

Tags

Pages

Citation

Citation

Similar Documents

Q3 2024 Financial Results

Summary of Financial Results for Third Quarter of Fiscal Year Ended December 31, 2024

Q2 2024 Financial Results

FY2024 Third Quarter Financial Results

Nexon Q3 2024 Earnings Release

Summary of Financial Results for First Quarter of Fiscal Year Ended December 31, 2024