Wemade 1Q FY2022 Earnings Results

Key insights

7 takeaways

01
Consolidated revenue for 1Q'22 was 131,035 million KRW, up 72% YoY, which the document attributes to a newly consolidated subsidiary, Wemade Play.See it on page 5
02
Operating income fell 75% QoQ to 6,494 million KRW, which the document links to cost increases from a new consolidated affiliate and a larger workforce.See it on page 5
03
Game sales were 115,802 million KRW in 1Q'22, up 96% YoY, while license sales fell 24% YoY to 12,943 million KRW.See it on page 6
04
Operating expenses rose 157% YoY to 124,541 million KRW, with labor costs up 178% YoY to 44,367 million KRW.See it on page 11
05
Net income was 399 million KRW, down 100% QoQ, which the document attributes to the base effect of recognizing valuation gains and losses at fair value in the prior quarter.See it on page 5
06
WEMIX DEX transaction value was about 41 million WEMIX in 1Q 2022, and NFT transaction value was about 5 million WEMIX, a 730% increase QoQ.See it on page 9
07
The company expects WEMIX DEX transaction value to rise as more platform onboarding games reach full operation after 2Q.See it on page 9

Summary

Wemade Co., Ltd. presents its unaudited 1Q 2022 earnings results, prepared under K-IFRS and provided for investors as a reference pending external auditor review. The presentation covers consolidated results for Wemade and its subsidiaries, including Wemade Play (formerly Sunday Toz), and reports on the company's WEMIX blockchain platform. Consolidated revenue for 1Q'22 was 131,035 million KRW, up 3% QoQ and 72% YoY, which the document attributes to a newly consolidated subsidiary, Wemade Play. Operating income fell to 6,494 million KRW, down 75% QoQ and 77% YoY, with the document citing cost increases from a new consolidated affiliate and higher workforce. Net income was 399 million KRW, down 100% QoQ and 98% YoY, attributed to the base effect of fair-value valuation gains of about 280 billion KRW in the prior quarter.

By revenue category, game sales were 115,802 million KRW (up 31% QoQ, 96% YoY), while license sales were 12,943 million KRW (down 64% QoQ, 24% YoY). WEMIX Platform sales were 1,058 million KRW, up 47% QoQ, which the document links to NFT transaction fees. Operating expenses reached 124,541 million KRW, up 23% QoQ and 157% YoY, with labor costs at 44,367 million KRW and service fees at 46,481 million KRW.

On the WEMIX Platform, the company reported an average of 1.3 million monthly Wallet MAU and 0.6 million DEX MAU for 1Q 2022, with 7 games in service and 10 more planned for onboarding in 2Q. WEMIX DEX transaction value was about 41 million WEMIX in the quarter, and NFT transaction value was about 5 million WEMIX, a 730% increase QoQ.