Netmarble Reports 577B Won Revenue For Q2 2021, Down By 15.8% YoY
It’s a slow year for Netmarble as the South Korean mobile game developer reports a 15.8% dip in year-over-year revenue at KRW 577 billion (~ $489 million) compared to Q2 2020’s KRW 686 billion (~ $ 581 million). Quarter-on-Quarter revenue, however, is up by 1.2% thanks in part to the release of the Ni no Kuni: Cross World MMORPG in June.
The company’s Q2 2021 Earnings Report also showed a whopping 61.8% YoY and 47.9% QoQ decrease in the company’s EBITDA (Earnings Before Interest, Taxation, Depreciation, and Amortization) due to increased labor and marketing costs.
“Despite solid results from Ni no Kuni: Cross Worlds’ June launch in key Asian countries, the increase in initial marketing costs put a significant drag on second quarter profitability,” said Netmarble CEO Seungwon Lee in the accompanying press release. “However, we expect the return on this investment to be positively reflected in our performance for the third and fourth quarters of 2021.”
Overseas sales made up the bulk of Netmarble’s revenue for the previous quarter at 74% of the company’s total revenue while only 26% came from South Korea. MMORPGs and RPGs were also the biggest revenue drivers at 32% each, with casual games making up 25% of total revenue, and other genres filling in the rest. Revenue from MMORPGs is also at its highest point in the past year, gaining 7% YoY and 2% QoQ.
“Looking toward the next quarter and second half, we’re optimistic the launch of MARVEL Future Revolution in 240 countries on August 25 will fortify Netmarble’s competitive edge in the global gaming market,” added Lee. “[. . .] The recent acquisition of SpinX Games, one of the fastest-growing companies in social casino gaming, will also play an integral role in the expansion of Netmarble’s casual game lineup. Additionally, we have a strong slate of upcoming global launches for the remainder of the year, such as Seven Knights 2 (excluding Korea, China, and Vietnam) and BTS Dream: TinyTAN House (excluding China).”
Details can be found in the full Q2 2021 Earnings Report on the Netmarble official site.
