Wemade 1Q FY2020 Earnings Results

Key insights

6 takeaways

01
Consolidated revenue for 1Q 2020 was 30,820 million won, up 28% QoQ and 15% YoY.See it on page 5
02
License sales reached 16,640 million won, rising 47% QoQ and 38% YoY.See it on page 6
03
Overseas sales rose 50% QoQ and 39% YoY to 20,437 million won, while domestic sales fell 14% YoY.See it on page 7
04
Operating income was 3,221 million won in 1Q 2020, compared with an operating loss of 5,066 million won in 4Q 2019.See it on page 5
05
Net income was 7,900 million won, mainly on receipt of damages related to a Mir IP infringement litigation in China and a foreign currency translation gain.See it on page 5
06
Operating expenses fell 6% QoQ and 19% YoY to 27,599 million won, primarily on declines in service fee, depreciation and other expenses.See it on page 8

Summary

Wemade Co., Ltd. presents its 1Q 2020 earnings results, prepared under K-IFRS and provided for investors as reference, with some parts subject to change due to the result of external audit. The consolidated group includes subsidiaries such as Wemade Next, Wemade Tree, FLERO Games and JOYMAX. The document covers key events for the quarter, plans for 2Q 2020, and summary financials. In 1Q 2020, revenue was 30,820 million won, up 28% QoQ and 15% YoY, and operating income was 3,221 million won, turning to profit from losses in both comparisons. Net income was 7,900 million won, which the company attributes mainly to receipt of damages related to a Mir IP infringement litigation in China and a foreign currency translation gain. License revenue rose 47% QoQ and 38% YoY to 16,640 million won, driven by two new license game launches and an increase in sales of existing games. Overseas sales reached 20,437 million won, up 50% QoQ and 39% YoY, while domestic sales were 10,383 million won, down 14% YoY. Operating expenses fell 6% QoQ and 19% YoY to 27,599 million won, primarily on declines in service fee, depreciation and other expenses. Total assets were 307.9 billion won at the end of 1Q 2020, versus 302.1 billion won in 2019.