Netmarble (251270) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 647.3 billion, down 17.2% quarter-over-quarter but up 2.6% year-over-year, mainly due to the absence of major new launches.

• EBITDA was KRW 102.8 billion, down 32% QoQ and up 319.6% YoY, with an EBITDA margin of 15.9%.

• Operating income was KRW 65.5 billion and net income KRW 20.6 billion, both lower than the previous quarter due to one-off gains in Q2.

Financial highlights

• Revenue: KRW 647.3 billion (QoQ -17.2%, YoY +2.6%).

• EBITDA: KRW 102.8 billion (QoQ -32%, YoY +319.6%).

• Operating profit: KRW 65.5 billion; net profit: KRW 20.6 billion; net profit (controlling): KRW 22.4 billion.

• EBITDA margin: 15.9%; operating margin: 10.1%; net margin: 3.5%.

• Operating expenses decreased 13.3% QoQ and 10.8% YoY to KRW 581.8 billion.

Segment performance

• Top revenue contributors: Solo Leveling: Arise 13%, Marvel Contest of Champions 8%, Jackpot World 8%, Lotsa Slots 7%, Cash Frenzy 7%, Raven 2 6%.

• Regional revenue: North America 43%, Korea 23%, Europe 13%, Southeast Asia 8%, Japan 7%, others 6%. Overseas revenue rose to 77%.

• Genre mix: Casual 39%, RPG 38%, MMORPG 15%, others 8%.