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Netmarble cuts losses by 90% in Q3 despite revenue decline

Workforce reduction and original IP stem losses, but publisher still has $1.29 billion short-term debts

Netmarble cuts losses by 90% in Q3 despite revenue decline

Netmarble cut its net losses by 89.9% year-over-year to ₩28.4 billion ($21.89 million) in Q3 2023 despite a decline in overall revenue.

Sales for the South Korea-based publisher fell by 9.2% Y/Y to ₩630.6 billion ($484.7 million) during the quarter.

The company noted that the launches of Seven Knights Idle Adventure and Tower of God: New World had boosted sales for its RPG portfolio, rising by 5.2% Y/Y in Q3 to ₩224 billion ($173.6 million), representing 35% of total revenue. This was not enough to offset the decrease in revenue, however.

Marvel Contest of Champions, first launched in December 2014 by developer Kabam, was Netmarble’s largest revenue generator during the quarter, accounting for 10% of sales. It was followed by SpinX Games titles Jackpot World, Cash Frenzy and Lotsa Slots, which made up 25% of revenue.

Overseas sales accounted for 83%, or ₩520.6bn ($400.4 million), of total global sales, down 3% Y/Y. North America was the company’s most lucrative region, generating 47% of sales, followed by South Korea at 17% and Europe at 12%.

Workforce reduction

While there was a decline in revenue, Netmarble said a reduction in its workforce had led to lower labour costs, declining by 6.5% Q/Q and 11% Y/Y to ₩180.6bn ($138.8 million). Increased sales of the firm’s own original IP also saw a 14.1% Y/Y reduction in royalty fees to ₩239.1 billion ($185.3 million).

Netmarble continues to have significant short-term debts of ₩1.68 trillion ($1.29 billion), despite a 17% decrease Y/Y. Much of the debt was accrued when the company acquired casino games developer SpinX for $2.19 billion back in August 2021.

As it looks to reduce its debts, the Korea Economic Daily reports that the company sold a 6% stake in BTS music label HYBE for ₩523.5 billion (approximately $400 million) earlier this month.

Looking to 2024, Netmarble aims to launch six new games in the first half of the year, including (Arthdal Chronicles: Three Factions, Solo Leveling:ARISE and Raven 2. It also aims to release MMORPG Ni no Kuni: Cross Worlds in China.


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Craig Chapple is a freelance analyst, consultant and writer with specialist knowledge of the games industry. He has previously served as Senior Editor at PocketGamer.biz, as well as holding roles at Sensor Tower, Nintendo and Develop.