Netmarble (251270) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached KRW 782.1 billion, up 33.6% quarter-over-quarter and 29.6% year-over-year, marking the highest since IPO due to new game launches and cost restructuring.

• EBITDA was KRW 151.1 billion, up 253.9% quarter-over-quarter and 1,299.1% year-over-year, with an EBITDA margin of 19.3%.

• Operating income was KRW 112.2 billion and net income KRW 162.3 billion, with controlling shareholders' net profit at KRW 169.5 billion, boosted by asset liquidation.

• Operates a global mobile game development and publishing business with 64 consolidated subsidiaries, focusing on mobile and cross-platform games.

• 2024 H1 revenue reached ₩1,367.5 billion, with 91.9% from mobile games and strong overseas sales.

Financial highlights

• Q2 revenue and EBITDA were the largest since IPO, driven by successful new title launches and cost restructuring.

• H1 2024 consolidated revenue: ₩1,367.5 billion, down from ₩2,502.1 billion in 2023 H1.

• Operating profit: ₩114.9 billion, a turnaround from a ₩68.5 billion loss in 2023 H1.

• Net profit attributable to controlling interests: ₩169.1 billion, compared to a ₩255.7 billion loss in 2023 H1.

• Cash and cash equivalents at period end: ₩473.0 billion.

Outlook and guidance

• Four new titles planned for launch in H2 2024: Seven Deadly Sins: Idle Adventure, King Arthur: Legends Rise, RF Online Next, and Demis Reborn.

• Major updates for Solo Leveling: Arise scheduled monthly from August to December.

• Additional 5-6 projects are in the pipeline for 2025, with details to be announced later.

• Seven Deadly Sins Origin planned for Q2 2025 launch, with coordinated marketing efforts across platforms.

• Continued investment in AI, blockchain, and metaverse to drive future growth.