NETMARBLE ISSUES FIRST QUARTER EARNINGS AND FISCAL RESULTS FOR 2020
Seoul, South Korea – May 25, 2020 –Netmarble Corp., a global mobile game company focusing on creating entertaining gaming experiences for players of all ages, reported their financial results for 2020’s first quarter.
“With the highly successful global launch of The Seven Deadly Sins: Grand Cross, and the ongoing enthusiasm for Netmarble’s overall lineup, we take pride in our ability to consistently provide engaging entertainment and truly appreciate Netmarble’s worldwide community of players,” said Seungwon Lee, Co-CEO of Netmarble.
“We are anticipating significant growth in sales and profitability in our second quarter due to improvement of marketing efficiency and ongoing sales from our new game releases, notably the global launch of The Seven Deadly Sins: Grand Cross, the launch of Blade & Soul Revolution in Asia, and the debut of A3: STILL ALIVE in Korea.”
Selected highlights from Netmarble’s first quarter include:
- $446.7 million in total sales, $17.1 million in operating profit, and a net profit of $48.2 million from January through March.
- Total sales increased by 11.6% year-over-year and decreased by 4% quarter-on-quarter. Operating profit went down 39.8% year-over-year and 60.1% quarter-on-quarter due to an increase in marketing expenses for new game launches in Q1.
- Net profit went up 35.9% year-over-year and 1,123.4% quarter-on-quarter due to increases in dividend income and profits of an equity-method investment from its subsidiaries including Kabam, Jam City and Big Hit Entertainment.
- The Seven Deadly Sins: Grand Cross which was launched worldwide in early March consistently ranked on the top-grossing charts in the Apple’s App Store and Google Play store, in the U.S. and European countries.
- Top-performing games include Kabam’s MARVEL Contest of Champions (14% of revenue generated), The Seven Deadly Sins: Grand Cross (12% of revenue generated), Lineage 2: Revolution (11% of revenue generated), Blade & Soul Revolution in Korea (8% of revenue generated), and Jam City’s Cookie Jam (5% of revenue generated), among others.
- Netmarble’s Western expansion led to overseas sales accounting for 71% of the company’s total sales, with North America earning 33% of the global revenue generated. Korea’s Q1 revenue share is 29% of the total revenue generated, while Japan, Europe, Southeast Asia, and other territories also contributed to the company’s overall earnings.
A breakdown of the total financial earnings is below:
|1/1/20-3/31/20 actuals||YoY Changes||QoQ Changes|
|Total Sales||$446.7 million||+11.6%||-4.0%|
|Operating Profit||$17.1 million||-39.8%||-60.1%|
|Net Profit||$48.2 million||+35.9%||+1,123.4%|
For additional details on Netmarble’s quarterly performance, and to listen to the earnings call, please visit the company’s Investor Relations page to learn more.
# # #
About Netmarble Corporation
Established in Korea in 2000, Netmarble Corporation is a top developer and publisher pushing the boundaries of the mobile gaming experience with highly innovative games including Lineage 2: Revolution, The Seven Deadly Sins: Grand Cross, Blade & Soul Revolution, and MARVEL Future Fight. As a parent company of Kabam, and a major shareholder of Jam City and BigHit Entertainment, Netmarble strives to entertain audiences around the world with a variety of mobile games based on its powerful franchises and collaborations with IP holders worldwide. More information can be found at http://company.netmarble.com