Netmarble Posts First Profit in Over a Year
This is the first net profit Netmarble has posted in over a year and its earnings are at their highest since it went public. Netmarble generated $570.4 million in revenue during the second quarter compared to $439.9 million in Q2 2023 – a 29.6% growth.
Interestingly, there was an increase in revenue quarter-over-quarter, indicating a return to growth after a difficult year. However, Netmarble saw another decline in Q1 to $426.8 million, which was attributed to the lack of new games.
Netmarble has turned its fortunes around with its first green quarter in years after a $717 million loss in 2022, which continued into 2023. The company made a net profit of $118.2 million this Q2, up from a $7.3 million loss in Q1 2024 and a $32.1 million loss in Q2 2023.
Netmarbles Boasts First Green Quarter in Years
Last quarter, operating profit reached $81 million compared with $2.9 million in Q1. Last quarter, there was a loss of $27 million. This quarter, EBITDA increased to 19.3%, up from 1.8% in Q2.
Arise, Netmarble’s latest action RPG, led the charge in revenue generation this quarter as the company’s most lucrative game of the period. The game contributed 20% of the company’s earnings, more than double Marvel Contest of Champions’ 9% and nearly triple Jackpot World’s 7%.
In its first three months, Solo Leveling: Arise generated more than $100 million according to Sensor Tower. RPG revenue share in Netmarble’s catalog increased by 12%, to 45% of the company’s earnings. Casual games generated 34% of the company’s earnings, while MMORPGs made 15%, according to Sensor Tower.
Furthermore, Netmarble’s earnings in its home country, Korea, grew by 7% quarter-over-quarter. The country represents its second-biggest market, contributing 24% of consumer spending, and is gradually catching up with the North American market.
Despite still contributing 40% of spending, Netmarble’s North American market saw an 8% decline quarter-over-quarter and a 12% decline year-over-year. Europe has remained stable at 13%. With rumors of the second season of Solo Leveling, the game studio just might continue to shine green.
