Netmarble

Netmarble’s financial results for the second quarter of 2026 demonstrate a period of growth, characterized by an increase in both consolidated revenue and operating profit. The company reported quarterly revenue of KRW 749.2 billion, representing a 15.0% increase quarter-over-quarter and a 4.4% increase year-over-year. This growth was primarily driven by the performance of existing titles and the successful launch of new games, including The Seven Deadly Sins: Origin and SOL: enchant. EBITDA reached KRW 112.0 billion with a margin of 14.9%, while operating profit stood at KRW 80.1 billion. Net profit was reported at KRW 203.9 billion, bolstered by non-operating gains such as the disposal of G-Tower.

The company maintains a geographically diverse revenue stream, with 78% of total revenue generated from overseas markets. North America remains the largest contributor at 39%, followed by Korea at 22%, Europe at 13%, Southeast Asia at 10%, and Japan at 9%. The game portfolio is similarly diversified across genres, led by RPGs at 42%, casual games at 35%, and MMORPGs at 17%. Revenue generation is well-distributed among top titles, with MARVEL Contest of Champions accounting for 9% of revenue, followed by several titles contributing between 5% and 7% each.

Operating costs for the quarter totaled KRW 669.1 billion, reflecting an 11.8% increase quarter-over-quarter. This rise is attributed to higher marketing expenditures related to new product launches, increased labor costs due to salary adjustments, and higher commission fees resulting from a larger revenue mix of external intellectual property games. Looking ahead to the second half of 2026, the company plans to expand its portfolio with the launch of three new titles: Solo Leveling: KARMA, Shangri-La Frontier: The Seven Colossi, and PROJECT AEGIS.

Netmarble Corporation has initiated a comprehensive share exchange to acquire the remaining 21.5% stake in its subsidiary, Netmarble Neo, effectively transitioning the entity into a wholly owned subsidiary. This strategic move is designed to resolve potential conflicts of interest associated with a dual-listing scenario, improve management efficiency, and simplify the corporate governance structure. By consolidating ownership, Netmarble aims to enhance financial profitability through increased net income and more flexible capital allocation, while simultaneously aligning the interests of all shareholders.

The transaction involves the issuance of approximately 1.59 million new Netmarble shares, representing a 1.9% dilution of existing equity. To mitigate this impact, Netmarble has committed to a share buyback and cancellation program equivalent to the value of the newly issued shares, approximately KRW 82.8 billion. Furthermore, the company is increasing its shareholder return policy for the 2026–2028 period, raising the target payout from 30% to 40% of adjusted net profit.

The share exchange ratio was established at 1:0.1160, determined by Netmarble’s reference market price and an intrinsic value assessment of Netmarble Neo. The fairness of this ratio was validated by independent external valuation firms, including EY Hanyoung and Grant Thornton Daejoo, ensuring the valuation fell within an objective range. The process, which adheres to the Capital Markets Act, involves a structured timeline concluding with the expected listing of additional shares in August 2026. This consolidation reflects a broader effort to optimize corporate structure and strengthen shareholder value amidst the continued performance of key titles such as Solo Leveling: ARISE.