Wemade 1Q FY2019 Earnings Results

Key insights

6 takeaways

01
Consolidated revenue for 1Q 2019 was 26,686 million won, down 18% from 4Q 2018 and down 24% from 1Q 2018.See it on page 5
02
Operating loss for 1Q 2019 was 7,264 million won, with the company citing increased marketing expenses for global service of existing games.See it on page 5
03
License revenue fell 33% quarter on quarter to 12,047 million won, mainly due to unrecognized sales of a few license games tied to the bad debt reserve set up in 4Q 2018.See it on page 6
04
Mobile revenue rose 5% quarter on quarter to 10,177 million won, which the document attributes to the overseas release of Icarus M in Japan and Taiwan.See it on page 6
05
Operating expenses were 33,950 million won, down 53% quarter on quarter but up 23% year on year, with marketing expenses rising to 4,790 million won from 1,780 million won in 4Q 2018.See it on page 8
06
The company is preparing a domestic launch of Mir 4 in 2019 and expects four to five new license games based on the Mir IP.See it on page 4

Summary

Wemade Entertainment Co., Ltd. presents its sales performance for 1Q 2019, prepared under K-IFRS and provided as reference to investors, with some parts subject to change following external audit. The consolidated group includes Wemade Next, Wemade Plus, Wemade Icarus, ChuanQi IP, Wemade Tree and several other subsidiaries and overseas entities. The document covers key results and plans, consolidated results, sales by platform, license and region, operating expenses, and summary financial statements. Revenue for 1Q 2019 was 26,686 million won, down 18% quarter on quarter and 24% year on year. The company attributes this to unrecognized sales of several games that established an allowance for bad debts in 4Q 2018. License revenue fell 33% quarter on quarter to 12,047 million won, while mobile revenue rose 5% to 10,177 million won, driven by overseas release of Icarus M in Japan and Taiwan. Operating expenses were 33,950 million won, down 53% quarter on quarter but up 23% year on year, with marketing expenses rising to 4,790 million won. Operating loss was 7,264 million won and net loss was 7,220 million won.

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