Netmarble Corp (XKRX:251270) Q3 2024 Earnings Call Highlights: Navigating Growth Amidst ...

In This Article:

  • Revenue: KRW647.3 billion, down 17.2% QoQ, up 2.6% YoY.

  • EBITDA: KRW102.8 billion, down 32% QoQ, up 319.6% YoY.

  • EBITDA Margin: 15.9%.

  • Operating Income: KRW65.5 billion.

  • Net Income: KRW20.6 billion.

  • Controlling Shareholders Net Profit: KRW22.4 billion.

  • Operating Expenses: KRW581.8 billion, down 13.3% QoQ, down 10.8% YoY.

  • Royalty Cost: KRW224.9 billion, down 14.5% QoQ, down 5.9% YoY.

  • Personnel Expense: KRW179.1 billion, down 2% QoQ, down 0.8% YoY.

  • Marketing Expense: KRW104.6 billion, down 27.2% QoQ, down 28.3% YoY.

  • Revenue by Region: 43% North America, 23% Korea, 13% Europe, 8% Southeast Asia, 7% Japan, 6% other regions.

  • Revenue by Genre: 39% Casual, 38% RPG, 15% MMORPG, 8% others.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Netmarble Corp (XKRX:251270) reported a year-over-year revenue increase of 2.6%, indicating growth despite quarterly fluctuations.

  • EBITDA saw a significant year-over-year increase of 319.6%, showcasing improved operational efficiency.

  • The company has a diversified game portfolio, with titles like Solo Leveling: ARISE contributing significantly to total revenue.

  • Netmarble Corp plans to launch several new titles, including King Arthur: Legends Rise and Game of Thrones: Kings Road, which could drive future growth.

  • The company is expanding its presence in the global market, with 77% of its revenue coming from overseas regions.

Negative Points

  • Quarter-over-quarter revenue decreased by 17.2%, reflecting challenges in maintaining consistent growth.

  • EBITDA decreased by 32% quarter-over-quarter, indicating potential issues in maintaining profitability.

  • Net income decreased compared to the previous quarter due to the absence of gains from asset disposals.

  • Operating expenses remain high, although they have decreased, indicating ongoing cost management challenges.

  • The absence of major new game launches in Q3 contributed to a decline in marketing expenses and potentially impacted revenue growth.

Q & A Highlights

Q: Can you provide details about the new game project with (inaudible) called Project Soul, and does Netmarble plan to expand external publishing with external IP? A: This is Chief Executive Officer Yeong Sik Gwon. The (inaudible) project is a new title under development by our affiliate, Netmarble Neo, and is separate from other projects. We have a long history of investing in licensed IP and will continue to select suitable IPs for new game releases.