Yahoo Finance

• Revenue: KRW214.4 billion, up 25% QoQ.

• Operating Income: KRW51.8 billion, turning positive due to revenue growth and cost-cutting.

• Net Income: KRW35.9 billion.

• Controlling Interest Net Income: KRW41.9 billion.

• Game Business Revenue: Night Crow global cumulative revenue of KRW200 billion since launch.

• License Revenue: KRW83.6 billion, including KRW50 billion from Mir IP license agreements.

• Blockchain Revenue: KRW1.1 billion, declined QoQ.

• Operating Expenses: Decreased 17% QoQ and 15% YoY.

• WeMade Max Revenue: KRW19 billion, up 2% QoQ and 3% YoY.

• WeMade Max Operating Loss: KRW2.1 billion.

• WeMade Max Net Loss: KRW4.8 billion.

• Overseas Sales: Increased 27% QoQ.

• Domestic Sales: Decreased 22% QoQ.

• Warning! GuruFocus has detected 3 Warning Signs with XKRX:112040.

Release Date: November 06, 2024

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

Positive Points

• Wemade Co Ltd (XKRX:112040) reported a significant revenue increase of 25% QoQ, reaching KRW214.4 billion.

• The company turned back into profitability with an operating income of KRW51.8 billion, driven by revenue growth and cost-cutting efforts.

• Night Crow global and Night Crow Korea showed a stabilizing trend in revenue, confirming the well-maintained life cycle of the game.

• The company successfully launched Night Crow global, solidifying its position as a global leader in Blockchain games.

• Wemade Co Ltd (XKRX:112040) is planning to release several new games, including Midnight Walkers and Legend of Ymir, which are expected to drive future growth.

Negative Points

• Non-operating profit was negatively impacted by a reduction in foreign currency translation gains due to lower exchange rates.

• Blockchain revenues declined QoQ due to decreased transaction volume on the remix platform.

• Operating expenses increased QoQ for WeMade Max, driven by higher advertising expenses and hiring of development staff.

• The company faces unpredictability in obtaining version numbers for its games in the Chinese market, affecting potential launches.

• Despite cost-cutting efforts, WeMade Max reported an operating loss of KRW2.1 billion and a net loss of KRW4.8 billion.

Q & A Highlights

Q: Can you provide more details about the new license agreement mentioned in the presentation? Is it a one-off agreement or could it be recurring in the future? Also, what are the company's expectations for the Legends of Ymir and its global launch timeline? A: The new license agreement is with an overseas game company for markets outside of China, involving the Mir IP. While the agreement is not multiyear, we are actively pursuing further IP business opportunities, suggesting potential for additional agreements. Regarding Legends of Ymir, we are very positive about its outlook. We have accumulated significant experience and capabilities from launching previous titles like Mir 4 Global and Night Crow Global. The game offers a unique dual-track growth mode and incorporates Blockchain technology for transparency and fairness. We expect the global launch of Ymir to occur within nine months after its initial release.