Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Netmarble Corp (XKRX:251270, Financial) reported a year-over-year revenue increase of 2.6%, indicating growth despite quarterly fluctuations.
- EBITDA saw a significant year-over-year increase of 319.6%, showcasing improved operational efficiency.
- The company has a diversified game portfolio, with titles like Solo Leveling: ARISE contributing significantly to total revenue.
- Netmarble Corp plans to launch several new titles, including King Arthur: Legends Rise and Game of Thrones: Kings Road, which could drive future growth.
- The company is expanding its presence in the global market, with 77% of its revenue coming from overseas regions.
Negative Points
- Quarter-over-quarter revenue decreased by 17.2%, reflecting challenges in maintaining consistent growth.
- EBITDA decreased by 32% quarter-over-quarter, indicating potential issues in maintaining profitability.
- Net income decreased compared to the previous quarter due to the absence of gains from asset disposals.
- Operating expenses remain high, although they have decreased, indicating ongoing cost management challenges.
- The absence of major new game launches in Q3 contributed to a decline in marketing expenses and potentially impacted revenue growth.
Q & A Highlights
Q: Can you provide details about the new game project with (inaudible) called Project Soul, and does Netmarble plan to expand external publishing with external IP?
A: This is Chief Executive Officer Yeong Sik Gwon. The (inaudible) project is a new title under development by our affiliate, Netmarble Neo, and is separate from other projects. We have a long history of investing in licensed IP and will continue to select suitable IPs for new game releases.
Q: With the successful turnaround, does Netmarble plan to use its cash flow for new title investments or to repay borrowings? What are the plans for investment and shareholder returns?
A: Chief Executive Officer Gi Wuk Doh here. Our primary focus is on improving our financial structure. While we do not have specific plans to securitize investment assets currently, this may change with market conditions. We are considering additional investments for growth and will provide detailed plans for shareholder returns by year-end.
Q: What is the current status of Netmarble's financial strategy and plans for shareholder returns?
A: CEO Gi Wuk Doh stated that Netmarble is committed to improving its financial structure and will strategically allocate resources for growth. Detailed plans for shareholder returns will be shared by the end of the year.
Q: How does Netmarble plan to utilize its IP strategy moving forward?
A: CEO Yeong Sik Gwon explained that Netmarble has been a pioneer in online games and will continue to invest in licensed IPs, carefully selecting those that are suitable for new game releases.
Q: Are there any specific plans for new game launches in the near future?
A: Netmarble plans to launch King Arthur: Legends Rise in the remaining months of 2024, followed by nine new titles in 2025, including Game of Thrones: Kings Road and Seven Deadly Sins: Origin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
