In This Article:
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Revenue: KRW647.3 billion, down 17.2% QoQ, up 2.6% YoY.
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EBITDA: KRW102.8 billion, down 32% QoQ, up 319.6% YoY.
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EBITDA Margin: 15.9%.
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Operating Income: KRW65.5 billion.
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Net Income: KRW20.6 billion.
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Controlling Shareholders Net Profit: KRW22.4 billion.
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Operating Expenses: KRW581.8 billion, down 13.3% QoQ, down 10.8% YoY.
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Royalty Cost: KRW224.9 billion, down 14.5% QoQ, down 5.9% YoY.
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Personnel Expense: KRW179.1 billion, down 2% QoQ, down 0.8% YoY.
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Marketing Expense: KRW104.6 billion, down 27.2% QoQ, down 28.3% YoY.
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Revenue by Region: 43% North America, 23% Korea, 13% Europe, 8% Southeast Asia, 7% Japan, 6% other regions.
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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
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Netmarble Corp (XKRX:251270) reported a year-over-year revenue increase of 2.6%, indicating growth despite quarterly fluctuations.
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EBITDA saw a significant year-over-year increase of 319.6%, showcasing improved operational efficiency.
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The company has a diversified game portfolio, with titles like Solo Leveling: ARISE contributing significantly to total revenue.
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Netmarble Corp plans to launch several new titles, including King Arthur: Legends Rise and Game of Thrones: Kings Road, which could drive future growth.
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The company is expanding its presence in the global market, with 77% of its revenue coming from overseas regions.
Negative Points
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Quarter-over-quarter revenue decreased by 17.2%, reflecting challenges in maintaining consistent growth.
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EBITDA decreased by 32% quarter-over-quarter, indicating potential issues in maintaining profitability.
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Net income decreased compared to the previous quarter due to the absence of gains from asset disposals.
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Operating expenses remain high, although they have decreased, indicating ongoing cost management challenges.
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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.