1. Netmarble’s Q2 Performance: What Happened?

Netmarble reported revenue of KRW 717.6 billion, operating profit of KRW 101.1 billion, and net income of KRW 160.3 billion for Q2 2025. While revenue slightly missed market expectations, operating profit and net income significantly exceeded forecasts, delivering an earnings surprise.

2. Reasons Behind the Earnings Surprise

The surge in operating profit and net income is primarily attributed to efficient cost management and the performance of high-margin games. Notably, the operating profit margin increased significantly from 7.97% in the previous quarter to 14.09%. This demonstrates that Netmarble’s efforts to improve profitability are paying off. The turnaround that began in Q1 2025, following a weak Q4 2024, continued in Q2, supporting the recovery of fundamentals.

3. Netmarble Investment Strategies: What Should Investors Do?

  • Short-Term Strategy: The earnings surprise is likely to have a positive impact on the stock price in the short term. However, investors should closely monitor the schedule and performance of upcoming new game releases and the sustainability of profit improvement.
  • Long-Term Strategy: Focus on the performance of investments in new businesses such as blockchain and metaverse, as well as the company’s strategy to strengthen its IP competitiveness. Managing potential risks related to exchange rate fluctuations and macroeconomic uncertainties is also crucial.

4. The Future of Netmarble: What Lies Ahead?

Netmarble’s strong Q2 results have raised expectations for a turnaround. However, intensifying competition in the gaming industry, increasing new game development costs, and macroeconomic uncertainties remain as risk factors. Investors should consider these factors comprehensively and make prudent investment decisions.