Netmarble swings to loss in 2022 on lack of blockbuster games

Netmarble logo [Courtesy of Netmarble]

Netmarble Corp. announced Thursday it swung to the red last year due to a lack of new blockbuster games in addition to a one-off cost factor.

The South Korean game developer and publisher said in a regulatory filing it posted an operating loss of 104.4 billion won ($82.7 million) despite increased sales last year. Sales grew 6.6 percent to 2.67 trillion won, with a net loss of 906.4 billion won. Operating expenses totaled 2.54 trillion won.

Netmarble said net loss was due to a lack of new blockbusters, sluggish sales of existing games and the recognition of damage to intangible assets.

In addition, there was a loss in the valuation of intangible assets generated from the acquisition of Hong Kong-based casino game company SpinX Games. This is not a problem of SpinX, but rather a readjustment amid contracted market conditions and it should be viewed as a one-time factor, said the company.

About 84 percent of revenue came from overseas last year. In the fourth quarter, North America accounted for 51 percent of total sales, followed by Korea at 15 percent, Europe at 12 percent, Southeast Asia at 8 percent, Japan at 7 percent and other regions at 7 percent.

Marvel Contest of Champions, a fighting video game developed by Netmarble’s North American subsidiary Kabam, was the best-selling product for the quarter, making up for 13 percent of Netmarble’s quarterly sales.

The company said it will release more than 10 new titles, including Paragon: The Overprime, this year.