Veronika Mikhailova

Netmarble’s annual revenue rose to $1.87 billion, but profit fell by a third

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Netmarble reported for October-December 2019 and for the whole year. Its annual profit has fallen markedly— including due to a quarterly loss of $ 5.2 million.

Netmarble has published the full report here.

Quarter

  • Netmarble’s revenue for the fourth quarter increased by 13% year-on-year to $473.3 million.
  • Operating profit for the same period reached $43.1 million, which is 32% more than in the same quarter of 2018.
  • The net quarterly loss was $5.2 million. The company does not explain why this happened. But previously, both revenues and profits had already fallen due to slowing sales and delayed releases.

Games and genres

In October-December, revenue was distributed across Netmarble games as follows:

  • Marvel: Contest of Champions — 17%;
  • Lineage 2: Revolution — 13%;
  • Seven Deadly Sins — 9%;
  • Blade & Soul: Revolution — 7%;
  • Cookie Jam — 5%;
  • Marvel: Future Fight — 4%;
  • the remaining games in total brought another 45% of revenue.

It is noted that 39% of the company’s revenue for the quarter was accounted for by its role—playing games, 25% — casual games and another 25% – MMORPG.

Regions

The company is making more and more money in the West. Its revenues abroad for the quarter amounted to $342.3 million. This is 72% of the total sales. Both quarterly and annual, the indicator grew by 4%.

Overall for the quarter:

  • North American players generated 30% of Netmarble revenue;
  • South Korea accounted for 28%;
  • to Japan — 15%;
  • to Europe — 11%;
  • for Southeast Asian countries – 9%;
  • for other countries and regions — 7%.

Taking into account these data, the company will logically continue its expansion to the West. In January, she has already launched a new title — ManaStrike — on the global market. It also has planned global launches in March (The Seven Deadly Sins: Grand Cross), in April (Blade & Soul: Revolution) and in an unspecified month of the first half of the year (Marvel: Realm of Champions).

Year

  • The South Korean company’s revenue amounted to $1.87 billion. In annual terms, the indicator grew by 7%.
  • Operating profit and net profit, on the contrary, decreased. The first indicator reached $173.1 million (a drop of 16% in annual terms). The second is $146.2 million (a drop of 26% in annual terms).

As Gamesindustry notes.biz, Netmarble had a noticeable increase in profit in the third quarter — up to $70 million. In the fourth, the indicator collapsed, as can be seen in the graph below. This influenced the annual result.

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