Netmarble (251270) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached ₩623.9 billion, up 6.6% YoY but down 3.9% QoQ, with EBITDA at ₩81.6 billion, up 91.1% YoY and 11.2% QoQ, and an EBITDA margin of 13.1%.

• Operating profit was ₩49.7 billion and net profit was ₩80.2 billion, rebounding from a prior loss due to the absence of impairment losses and higher equity method gains.

• Revenue growth was driven by the launch of RF ONLINE NEXT and a rebound in Solo Leveling:ARISE.

Financial highlights

• Operating expenses in Q1 were ₩574.2 billion, down 6.5% QoQ and 1.3% YoY.

• Marketing expenses totaled ₩114.2 billion, down 5.2% QoQ but up 12.5% YoY.

• Personnel expenses were ₩172.1 billion, down 3.7% QoQ and 4.1% YoY due to headcount reduction.

• Commissions were ₩219.1 billion, down 5.4% QoQ and 3.6% YoY, reflecting increased in-house IP revenue.

Outlook and guidance

• Multiple new titles are scheduled for release in Q2 and the second half of 2025, including Seven Knights Re:BIRTH, Game of Thrones: Kingsroad, The King of Fighters AFK, and The Seven Deadly Sins: Origin.

• Gradual improvement in quarterly performance is expected as new games launch and cost optimization continues.