SEOUL (ANN/THE KOREA HERALD) – South Korean game developer Netmarble Corp on Thursday reported a return to profitability in the third quarter, driven by strong sales of its webtoon-based game, Solo Leveling: ARISE.
For the July-September period, the company posted a net profit of KRW20.6 billion (USD14.8 million), reversing a loss of KRW28.4 billion a year earlier, according to a regulatory filing.
Operating income reached KRW65.5 billion, a significant turnaround from the loss of KRW21.9 billion in the same period last year. Sales rose 2.6 per cent to KRW647.3 billion.
Despite the positive results, Netmarble’s earnings fell short of market expectations. Analysts had forecasted a net profit of KRW51.7 billion, based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company attributed the improvement in its financial performance to the global success of Solo Leveling: ARISE, a role-playing game based on a popular South Korean webtoon. Released in May, the game accounted for 13 per cent of Netmarble’s total sales in the third quarter.
Geographically, 43 per cent of Netmarble’s quarterly sales came from North America, followed by 23 per cent from South Korea, 13 per cent from Europe, and 8 per cent from Southeast Asia.
Looking ahead, Netmarble is set to release King Arthur: Legends Rise in the fourth quarter and has plans for nine new titles next year, including Game of Thrones: Kingsroad.
