Netmarble's First Quarter Earnings Show Growth Despite Pandemic

Earlier today, Netmarble — one of the largest global mobile game companies — released its financial results from 2020's first quarter. The company, which focuses on making games for players of all ages, has been consistently releasing quality content and updates for their games. Some of their more popular games include BTS WorldA3 Still Alive, and King of Fighters All-Star.

"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."

"The Seven Deadly Sins: Grand Cross" Will Launch On March 3rd
Credit: Netmarble

Overall numbers have gone up, likely due to people spending more time on their cell phones as a result of the worldwide COVID-19 pandemic. Some of their highlighted numbers include the following;

  • $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.

Netmarbles newest game, The Seven Deadly Sins: Grand Cross has been on the top-grossing charts for both the App Store and Google Play since it's launch in early March. Other top performing games include Marvel Contest of Champions (14% revenue generated), The Seven Deadly Sins: Grand Cross (12% revenue generated), Lineage 2: Revolution (11% revenue generated), Blade & Soul Revolution (8% revenue generated), and Cookie Jam (5% revenue generated). Netmarbles Western expansion gave the company 71% of their total sales — with North America bringing in 33%. Korea's Q1 revenue made up 29%, while Japan, Europe, Southeast Asia, and other countries made up the rest.

About Baltimore Lauren

I like pinball machines, Archie Comics, and bad movies. Sometimes I write about old books for the heck of it. Follow me on Twitter: @BaltimoreLauren

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