Korean developer and publisher Com2Us turned a profit in 2023, moving out of the red and earning ₩4.4 billion ($3.3 million) in net profit. This turn to surplus was achieved after 2022’s deficit of -₩9.3 billion (-$7 million), and came despite a continued year-on-year deficit in operating profit.
Though its net profit result gives Com2Us cause to celebrate, the company can’t rest on its laurels just yet; after all, the fourth quarter saw a 19.5% decline in consolidated revenue attributed to "negative seasonality", as per the company’s latest financials. Consolidated profits were down too, continuing a year-on-year trend for Q4.
Partial improvement
Com2Us’ operating losses were ₩17.6 billion ($13.2 million) in Q4 due to "one-time losses in media business", rather than a gaming shortfall; in fact, Com2Us’ games catalogue generated ₩126.4 billion ($98.9 million) in the quarter, accounting for 77% of the company’s ₩164.5 billion ($123.4 million) in total earnings. This also meant Q4 gaming sales only fell by 3% year-on-year, versus a 48.5% fall from wider media.
And looking at 2023 as a whole, Com2Us did indeed turn to surplus, making a profit thanks in part to a 13.5% YoY rise in games sales. Games generated ₩562 billion ($421.6 million) for Com2Us in 2023, marking a substantial climb from the ₩495 billion ($371 million) earned in the 2022 fiscal year.
The casual game genre saw the biggest surge in profitability in 2023, with Minigame Party: Pocket Edition, increasing the genre’s earnings by a massive 95.3% year-on-year. Com2Us’ sports game earnings rose too, up 31.2%.
Meanwhile, RPGs saw a 16.6% decline in 2023, peaking in Q2 at ₩116.4 billion ($87 million) and falling as low as ₩73.6 billion ($55 million) in Q4, quite contrary to the genre’s trend in consumer spending industry-wide.
A bigger slice
Com2Us’ proportion of game sales within Korea marginally increased, up 0.2% year-on-year, but the overseas market continued to contribute the bulk of the dev’s earnings; 68.5% of game revenues came from abroad with ₩86.6 billion ($65 million) generated last year, which was in fact a 3.4% decline. Com2Us attributed this to the fall in RPG sales.
Even so, Com2Us’ biggest RPG Summoners War: Sky Arena is still going strong as it approaches its 10th anniversary with over 200 million downloads and ₩3.2 trillion ($2.4 billion) in earnings, making it the top RPG by sales in 162 regions.
As for what 2024 may hold, Com2Us soft-launched Frostpunk: Beyond the Ice last month and intends to take it global - China excluded - in the second half of the year. The current exclusion comes as little surprise given China’s approval process, ever-changing and complex to navigate.
