Wemade 3Q FY2019 Earnings Results

Key insights

6 takeaways

01
Consolidated revenue fell 15% quarter on quarter and 9% year on year, which the document attributes to a high base effect from revenue recognition of unpaid royalty in 2Q 2019.See it on page 5
02
Operating income was 223 million won in 3Q 2019, down 92% quarter on quarter but turning to profit compared with a loss in 3Q 2018.See it on page 5
03
License revenue rose 23% year on year to 15,986 million won, while mobile revenue fell 41% year on year to 8,398 million won.See it on page 6
04
The company reported a net loss of 480 million won for 3Q 2019, a deficit that continued both quarter on quarter and year on year.See it on page 5
05
Operating expenses fell 8% quarter on quarter, with marketing expenses declining 38% to 1,140 million won.See it on page 8
06
Overseas revenue was 18,332 million won, up 17% year on year, despite a 14% quarter-on-quarter decline attributed to the high base effect from 2Q 2019 royalty recognition.See it on page 7

Summary

Wemade Co., Ltd. presents its 3Q FY2019 earnings results, prepared under K-IFRS and provided as reference for investors, with some parts subject to change following external audit. The consolidated group covers Wemade subsidiaries including JOYMAX, FLERO Games, and several China-based entities. The results compare 3Q 2019 with 2Q 2019 and 3Q 2018. Consolidated revenue was 28,946 million won, down 15% quarter on quarter and 9% year on year, which the company attributes to a high base effect from revenue recognition of unpaid royalty in 2Q 2019. Operating income was 223 million won, down 92% quarter on quarter but turning to profit from a loss of 4,418 million won a year earlier. Net income was a deficit of 480 million won, mainly driven by income tax, according to the document. License revenue was 15,986 million won, up 23% year on year, while mobile revenue fell 41% year on year to 8,398 million won. Marketing expenses declined 38% quarter on quarter to 1,140 million won.