Seoul: Netmarble Corp., a South Korean game developer, reported a return to profitability in the first quarter, driven by the successful debut of its new game RF Online Next and consistent sales from its webtoon-based game Solo Leveling: ARISE.
According to Yonhap News Agency, Netmarble's net profit for the January-March period amounted to 80.2 billion won (US$57.3 million), marking a significant turnaround from a loss of 9.9 billion won in the same period last year. The company revealed these figures in a regulatory filing.
The company's operating income for the first quarter soared to 49.7 billion won, compared to 3.7 billion won a year ago. Sales also saw a rise of 6.6 percent, reaching 623.9 billion won. These earnings surpassed market expectations, with analysts predicting an average net profit of 29.1 billion won, as per a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
Netmarble attributed its improved earnings to the successful launch of RF Online Next in March and a resurgence in sales of Solo Leveling: ARISE. In terms of market share, North America led with 46 percent of all sales, followed by South Korea at 18 percent, Europe at 14 percent, and Southeast Asia at 10 percent.
The company reported a 1.3 percent decrease in operating expenses on-year, totaling 574.2 billion won. While labor costs decreased by 4.1 percent to 172.1 billion won, marketing expenses rose by 12.5 percent to 114.2 billion won.
Looking ahead, Netmarble plans to release several high-profile titles, including Seven Knights Rebirth in South Korea and Game of Thrones: Kingsroad in Western markets, within this month.