Wemade Reduces Deficit with New Releases... Q1 Operating Loss of 11.3 Billion KRW

69.9% Increase Compared to the Same Period Last Year

'Legend of YMIR' Contributes 26% to Game Revenue

"Accelerating WEMIX-Based Blockchain Game Business"

Wemade has reduced its deficit compared to the same period last year due to the effect of new releases.

On the 14th, Wemade announced that its consolidated operating loss for the first quarter of this year was 11.3 billion KRW. Revenue was 141.8 billion KRW, down 12.1% from the same period last year. The net loss for the period was 20.6 billion KRW, reducing the deficit.

Wemade explained that the reason for the turnaround to a deficit in operating profit and net profit compared to the previous quarter was "an increase in costs such as labor costs due to the incorporation of the subsidiary Mad Engine, which was completed at the end of last year, and an increase in advertising and promotional expenses related to new release marketing."

In the game business sector, new releases such as 'Legend of YMIR', which began service in Korea on February 20, have shown performance.

Wemade plans to actively target overseas markets with various genre games for a substantial rebound. In the third quarter, 'MIR M' will be released in China, and 'Midnight Walkers' will be launched in the global market in the second half. The global version of 'Legend of YMIR', which applies advanced tokenomics, will be introduced in the fourth quarter.

Preparations for upcoming titles such as 'MIR5', 'Black Vultures: Prey of Grid', 'Night Crow 2 (tentative title)', and 'TAL: The Arcane Land' are also underway.

Additionally, the company is accelerating its blockchain business based on the virtual asset WEMIX. It plans to service a number of high-quality blockchain games in the global market.

Wemade Max recorded approximately 47.1 billion KRW in revenue, an operating loss of approximately 2.4 billion KRW, and a net loss of approximately 700 million KRW in the first quarter. Currently, more than 10 new titles are being developed, centered on verified core subsidiaries such as Wemade Next and Mad Engine. This year, more games are expected to be released than in previous years.

Reporter Subin Park, Hankyung.com waterbean@hankyung.com