Q2 2026 Netmarble Corp Earnings Call
Speaker #1: 2분기 실적 발표 설명회에 참석해 주신 투자자 및 애널리스트 여러분들께 진심으로 감사 말씀 드립니다. 현재 이 자리에는 김병규 대표, 도기옥 CFO 등이 참석하였으며, 실적 발표 이후 주요 질의에 대한 답변을 드릴 예정입니다.
Jiwon Lee: 2분기 실적 발표 설명회에 참석해 주신 투자자 및 애널리스트 여러분들께 진심으로 감사 말씀드립니다. 현재 이 자리에는 김병규 대표, 도기욱 CFO 등이 참석하였으며, 실적 발표 이후 주요 질의에 대한 답변을 드릴 예정입니다. 이 시간 발표드리는 내용은 외부 감사인의 감사가 완료되지 않은 상태에서 작성된 것입니다. 따라서 향후 감사 결과에 따라 일부 변경될 수 있음을 양해 부탁드립니다. 그럼 Netmarble 도기욱 CFO가 실적 발표를 진행하도록 하겠습니다.
Jiwon Lee: [Foreign language]
Speaker #1: 이 시간 발표 드리는 내용은 외부 감사인의 감사가 완료되지 않은 상태에서 작성된 것입니다. 따라서 향후 감사 결과에 따라 일부 변경될 수 있음을 양해 부탁드립니다. 그럼 넷마블 도기옥 CFO가 실적 발표를 진행하도록 하겠습니다.
Speaker #2: Good afternoon, this is Ji-won Lee, head of the company's IR team. Thank you sincerely to all investors and analysts who have taken the time to attend our 2026 Q2 earnings conference call amidst your busy schedules.
Jiwon Lee: Good afternoon. This is Jiwon Lee, head of the company’s IR team. Thank you sincerely to all investors and analysts who have taken the time to attend our Q2 2026 Earnings Conference Call amidst your busy schedule. Present with us today are CEO Byung-gyu Kim, CFO Gi-uk Do, and other members who will be available to answer questions following the earnings presentation. Please note that this presentation is prepared prior to the completion of our external audit. Therefore, some details may be subject to change based on the audit results. I will hand it over to our CFO, Gi-uk Do, to proceed with the earnings presentation.
[Translator]: Good afternoon. This is Jiwon Lee, head of the company’s IR team. Thank you sincerely to all investors and analysts who have taken the time to attend our Q2 2026 Earnings Conference Call amidst your busy schedule. Present with us today are CEO Byung-gyu Kim, CFO Gi-uk Do, and other members who will be available to answer questions following the earnings presentation. Please note that this presentation is prepared prior to the completion of our external audit. Therefore, some details may be subject to change based on the audit results. I will hand it over to our CFO, Gi-uk Do, to proceed with the earnings presentation.
Speaker #2: Present with us today are CEO Byeonggyu Kim, CFO Gi-uk Do, and other members who will be available to answer questions following the earnings presentation.
Speaker #2: Please note that this presentation is prepared prior to the completion of our external audit. Therefore, some details may be subject to change based on the audit results.
Speaker #2: Now, I'll hand it over to our CFO, Gi-uk Do, to proceed with the earnings presentation.
Gi-uk Do: [Foreign language]
Gi-uk Do: 안녕하십니까. 재무전략 담당 맡고 있는 도기욱입니다. 2026년 2분기 경영 실적을 말씀드리겠습니다. 2페이지부터 참조해 주시기 바랍니다.
Speaker #3: 네, 안녕하십니까. 재무전략 담당 맡고 있는 도기옥입니다. 2026년 2분기 경영 실적을 말씀드리겠습니다. 2페이지부터 참조해 주시기 바랍니다.
Speaker #2: Good afternoon, this is CFO Gi-uk Do. Let me begin by presenting our business results for the second quarter of 2026. Please refer to page 2.
Jiwon Lee: Good afternoon. This is CFO Gi-uk Do. Let me begin by presenting our business results for Q2 2026. Please refer to page 2.
[Translator]: Good afternoon. This is CFO Gi-uk Do. Let me begin by presenting our business results for Q2 2026. Please refer to page 2.
Gi-uk Do: [Foreign language]
Speaker #3: 2분기 매출액은 전 분기 대비 15% 증가, 전년 동기 대비 4.4% 증가한 7,492억 원을 기록했습니다. EBITDA는 전 분기 대비 33.5% 증가, 전년 동기 대비 14.6% 감소한 1,120억 원이었으며, EBITDA 마진율은 14.9%를 달성하였습니다.
Gi-uk Do: 2분기 매출액은 전 분기 대비 15% 증가, 전년 동기 대비 4.4% 증가한 7,492억 원을 기록했습니다. EBITDA는 전 분기 대비 33.5% 증가, 전년 동기 대비 14.6% 감소한 1,112억 원이었으며, EBITDA 마진율은 14.9%를 달성하였습니다. 매출과 EBITDA는 신작 출시 성과 반영과 기존작 매출 상승으로 인해서 전 분기 대비 증가했습니다.
Speaker #3: 매출과 EBITDA는 신작 출시 성과 반영과 기존작 매출 상승으로 인해서 전 분기 대비 증가하였습니다.
Jiwon Lee: Q2 revenue reached KRW 749.2 billion, up 15% QOQ and up 4.4% YoY. EBITDA rose 33.5% QOQ, but fell 14.6% YoY to KRW 112 billion, and EBITDA margin was 14.9%. Revenue and EBITDA increased QOQ, reflecting the performance of new releases and revenue growth of existing games.
[Translator]: Q2 revenue reached KRW 749.2 billion, up 15% QOQ and up 4.4% YoY. EBITDA rose 33.5% QOQ, but fell 14.6% YoY to KRW 112 billion, and EBITDA margin was 14.9%. Revenue and EBITDA increased QOQ, reflecting the performance of new releases and revenue growth of existing games.
Speaker #2: Second quarter revenue reached 749.2 billion won, up 15% QoQ, and up 4.4% YOY. EBITDA rose 33.5% QoQ but fell 14.6% YOY to 112 billion won, and EBITDA margin was 14.9%.
Speaker #2: Revenue and EBITDA increased QoQ, reflecting the performance of new releases and revenue growth of existing games.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 다음 페이지는 영업이익과 순이익에 관한 내용입니다. 2분기에는 영업이익이 801억 원, 당기순이익이 2,039억 원, 지배주주 순이익이 1,976억 원을 기록하였습니다. 당기순이익에는 9로 4억 매각에 따른 처분이익 등이 반영되어진 숫자입니다.
Gi-uk Do: 다음 페이지는 영업이익과 순이익에 관한 내용입니다. 2분기에는 영업이익이 801억 원, 당기순이익이 2,039억 원, 지배주주순이익이 1,976억 원을 기록하였습니다. 당기순이익에는 구로 사옥 매각에 따른 처분이익 등이 반영되어진 숫자입니다.
Speaker #2: The next page covers operating profit and net income. In Q2, operating profit was 80.1 billion won, net income was 203.9 billion won, and net income attributable to controlling shareholders was 197.6 billion won.
Jiwon Lee: The next page covers operating profit and net income. In Q2, operating profit was KRW 80.1 billion, net income was KRW 203.9 billion, and net income attributable to controlling shareholders was KRW 197.6 billion. Net income included a gain on the disposal of G Tower.
[Translator]: The next page covers operating profit and net income. In Q2, operating profit was KRW 80.1 billion, net income was KRW 203.9 billion, and net income attributable to controlling shareholders was KRW 197.6 billion. Net income included a gain on the disposal of G Tower.
Speaker #2: Net income included a gain on the disposal of G-Tower.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 다음은 게임 포트폴리오에 대한 내용입니다. 2분기 말 기준 주요 게임별 매출 비중은 마블 콘텐츠 오브 챔피언스 9%, 7개에 대해 오리진, 라차 슬롯, 잭팟 월드, 캐시 프렌즈 각 7%, 7개에 대해 그랜드 크로스 5% 등으로 인해서 게임 포트폴리오는 지속적으로 다변화된 현상을 이어지고 있습니다.
Gi-uk Do: 다음은 게임 포트폴리오에 대한 내용입니다. 2분기 말 기준, 주요 게임별 매출 비중은 Marvel Contest of Champions 9%, 일곱 개의 대죄: Origin, Lotsa Slots, Jackpot World, Cash Frenzy 각 7%, 일곱 개의 대죄: GRAND CROSS 5% 등으로 인해서 게임 포트폴리오는 지속적으로 다변화된 현상이 이어지고 있습니다. 당분기에는 신작 출시뿐 아니라 기존작의 라이브 운영 성과 역시 두드러졌습니다. Marvel Contest of Champions는 시즈널 프로모션을 통해서 성장세를 지속하였고, 일곱 개의 대죄: Origin은 당분기 성과가 온기 반영되면서 당분기 전체 매출의 7%를 견인하였습니다. 또한 일곱 개의 대죄: GRAND CROSS는 작년부터 추진해 온 잔존율 개선 작업과 7주년 업데이트를 기반으로 큰 폭의 매출 성장을 이뤄냈습니다. 마지막으로 지난 6월 출시한 Solo Leveling: ARISE는 국내 양대 마켓 1위를 기록하였고, 앞으로도 지역 확장과 체계적인 콘텐츠 업데이트를 통해서 장기적인 성과를 이어갈 계획입니다.
Speaker #3: 당분기에는 신작 출시뿐 아니라 기존작의 라이브 운영 성과 역시 두드러졌습니다. 마블 콘텐츠 오브 챔피언스는 시즌을 프로모션을 통해서 성장세를 지속하였고, 7개에 대해 오리진은 당분기 성과가 온기 반영되면서 당분기 전체 매출의 7%를 견인하였습니다.
Speaker #3: 또한 7개에 대해 그랜드 크로스는 작년부터 추진해 온 잔존율 개선 작업과 7주년 업데이트를 기반으로 큰 폭의 매출 성장을 이뤄냈습니다. 마지막으로 지난 6월 출시한 소울 인센티브는 국내 양대 마켓 1위를 기록하였고, 앞으로도 지역 확장과 체계적인 콘텐츠 업데이트를 통해서 장기적인 성과를 이어갈 계획입니다.
Jiwon Lee: The following page provides an overview of our game portfolio. As of the end of Q2, revenue contribution by major titles was as follows: Marvel Contest of Champions accounted for 9% of revenue, followed by The Seven Deadly Sins Origin, Lotsa Slots, Jackpot World, and Cash Frenzy at 7% each, and The Seven Deadly Sins: Grand Cross at 5%, demonstrating the continued diversification of our game portfolio. In Q2, the new titles that we launched, as well as our existing games, delivered strong live service performance. Marvel Contest of Champions sustained its growth momentum through seasonal promotions. The Seven Deadly Sins Origin benefited from a full quarter revenue contribution, accounting for 7% of total revenue. In addition, The Seven Deadly Sins: Grand Cross achieved significant revenue growth supported by retention improvement initiatives implemented since last year and its seventh anniversary update.
[Translator]: The following page provides an overview of our game portfolio. As of the end of Q2, revenue contribution by major titles was as follows: Marvel Contest of Champions accounted for 9% of revenue, followed by The Seven Deadly Sins Origin, Lotsa Slots, Jackpot World, and Cash Frenzy at 7% each, and The Seven Deadly Sins: Grand Cross at 5%, demonstrating the continued diversification of our game portfolio. In Q2, the new titles that we launched, as well as our existing games, delivered strong live service performance. Marvel Contest of Champions sustained its growth momentum through seasonal promotions. The Seven Deadly Sins Origin benefited from a full quarter revenue contribution, accounting for 7% of total revenue.
Speaker #2: The following page provides an overview of our game portfolio. As of the end of the second quarter, revenue contribution by major titles was as follows: Marvel Contest of Champions accounted for 9% of revenue, followed by the Seven Deadly Sins: Origin, Lost at Slot, Jackpot World, and Cash Frenzy at 7% each, and the Seven Deadly Sins: Grand Cross at 5%.
Speaker #2: Demonstrating the continued diversification of our game portfolio. In Q2, the new titles that we launched, as well as our existing games, delivered strong, live service performance.
Speaker #2: Marvel Contest of Champions sustained its growth momentum through seasonal promotions. The Seven Deadly Sins: Origin benefited from a full quarter revenue contribution accounting for 7% of total revenue.
Speaker #2: In addition, the Seven Deadly Sins: Grand Cross achieved significant revenue growth, supported by retention improvement initiatives, implemented since last year, and its seventh anniversary update.
[Translator]: In addition, The Seven Deadly Sins: Grand Cross achieved significant revenue growth supported by retention improvement initiatives implemented since last year and its seventh anniversary update. Lastly, Soul Enchant, which launched in June, reached number one on Korea's two major app marketplaces. Going forward, we plan to sustain its long-term performance through geographic expansion and well-planned content updates.
Speaker #2: Lastly, Soul in Champs, which launched in June, reached number 1 on Korea's two major app marketplaces, and going forward, we plan to sustain its long-term performance through geographic expansion and well-planned content updates.
Jiwon Lee: Lastly, Soul Enchant, which launched in June, reached number one on Korea's two major app marketplaces. Going forward, we plan to sustain its long-term performance through geographic expansion and well-planned content updates.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 다음은 지역 및 장르별 매출 비중에 대한 내용입니다. 2분기 지역별 매출은 북미 39%, 한국 22%, 유럽 13%, 동남아 10%, 일본 9%, 기타 17%를 기록하였고, 해외 매출 비중은 전 분기 대비 1%p 감소한 78%를 달성하였습니다.
Gi-uk Do: 다음은 지역 및 장르별 매출 비중에 대한 내용입니다. 2분기 지역별 매출은 북미 39%, 한국 22%, 유럽 13%, 동남아 10%, 일본 9%, 기타 7%를 기록하였고, 해외 매출 비중은 전 분기 대비 1%포인트 감소한 78%를 달성하였습니다. 특히 일본 매출 비중은 일곱 개의 대죄 IP 게임들의 성과가 반영되면서 전 분기 대비 2%포인트 증가하였고, Soul Enchant 출시로 인해서 국내 매출 비중 또한 전 분기 대비 1%포인트 증가하였습니다. 장르별 매출 비중은 RPG 42%, 캐주얼 게임 35%, MMORPG 17%, 기타 6% 순으로 구성되어 있습니다.
Speaker #3: 특히 일본 매출 비중은 7개에 대해 IP 게임들의 성과가 반영되면서 전 분기 대비 2%p 증가하였고, 소울 인센티브 출시로 인해서 국내 매출 비중 또한 전 분기 대비 1%p 증가하였습니다.
Speaker #3: 장르별 매출 비중은 RPG 42, 캐주얼 게임 35, MMORPG 17, 기타 6% 수준으로 구성되어 있습니다.
Jiwon Lee: Next, breakdown of revenue by region and genre. In Q2, revenue by region was comprised of North America at 39%, Korea 22%, Europe 13%, Southeast Asia 10%, Japan 9%, and other regions at 7%. Overseas revenue ratio was 78%, down 1 percentage point quarter-over-quarter. In particular, the revenue contribution from Japan increased by 2 percentage points quarter-over-quarter, driven by the strong performance of titles based on the Seven Deadly Sins IP. Meanwhile, the revenue contribution from Korea also increased by 1 percentage point quarter-over-quarter following the launch of Soul Enchant. By genre, revenue was composed of RPG at 42%, casual games 35%, MMORPG 17%, and others 6%.
[Translator]: Next, breakdown of revenue by region and genre. In Q2, revenue by region was comprised of North America at 39%, Korea 22%, Europe 13%, Southeast Asia 10%, Japan 9%, and other regions at 7%. Overseas revenue ratio was 78%, down 1 percentage point quarter-over-quarter. In particular, the revenue contribution from Japan increased by 2 percentage points quarter-over-quarter, driven by the strong performance of titles based on the Seven Deadly Sins IP. Meanwhile, the revenue contribution from Korea also increased by 1 percentage point quarter-over-quarter following the launch of Soul Enchant. By genre, revenue was composed of RPG at 42%, casual games 35%, MMORPG 17%, and others 6%.
Speaker #2: Next, breakdown of revenue by region and genre. In Q2, revenue by region was comprised of North America at 39%, Korea 22%, Europe 13%, Southeast Asia 10%, Japan 9%, and other regions at 7%.
Speaker #2: Overseas revenue ratio was 78%, down 1 percentage point quarter over quarter. In particular, the revenue contribution from Japan increased by 2 percentage points quarter over quarter driven by the strong performance of titles based on the Seven Deadly Sins IP.
Speaker #2: Meanwhile, the revenue contribution from Korea also increased by 1 percentage point quarter over quarter, following the launch of Soul in Champs. By genre, revenue was composed of RPG at 42%, casual games 35%, MMORPG 17%, and others 6%.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 다음은 주요 비용 구조에 대한 내용입니다. 2분기 영업비용은 6,691억 원으로, 전 분기 대비 11.8% 증가, 전년 동기 대비 8.5% 증가하였습니다. 마케팅비는 신작 출시 등으로 인해서 전 분기 대비 9.1% 증가하였고, 인건비는 급여 인상 효과가 온기 반영되면서 전 분기 대비 8.9% 증가한 1,825억 원을 기록하였습니다.
Gi-uk Do: 다음은 주요 비용 구조에 대한 내용입니다. 2분기 영업비용은 6,691억원으로 전 분기 대비 11.8% 증가, 전년 동기 대비 8.5% 증가했습니다. 마케팅비는 신작 출시 등으로 인해서 전 분기 대비 9.1% 증가하였고, 인건비는 급여 인상 효과가 온기 반영되면서 전 분기 대비 8.9% 증가한 1,825억원을 기록하였습니다. 마지막으로 지급수수료율은 외부 IP 게임의 매출 비중 확대 등으로 인해서 전 분기 대비 0.6%포인트 증가한 31.4%를 기록하였습니다.
Speaker #3: 마지막으로 지급 수수료율은 외부 IP 게임의 매출 비중 확대 등으로 인해서 전 분기 대비 0.6%p 증가한 31.4%를 기록하였습니다.
Speaker #2: The next page outlines our key cost structure. Q2 operating expenses amounted to 669.1 billion won, up 11.8% QoQ and up 8.5% YOY. Marketing expenses increased by 9.1% QoQ, primarily due to new title launches.
Jiwon Lee: The next page outlines our key cost structure. Q2 operating expenses amounted to KRW 669.1 billion, up 11.8% QOQ, and up 8.5% YoY. Marketing expenses increased by 9.1% QOQ, primarily due to new title launches. Labor expenses increased 8.9% QOQ to KRW 182.5 billion, reflecting the full quarter impact of salary increases. Finally, commission expense ratio increased by 0.6 percentage points QOQ to 31.4%, driven by an increased share of revenue from external IP games.
[Translator]: The next page outlines our key cost structure. Q2 operating expenses amounted to KRW 669.1 billion, up 11.8% QOQ, and up 8.5% YoY. Marketing expenses increased by 9.1% QOQ, primarily due to new title launches. Labor expenses increased 8.9% QOQ to KRW 182.5 billion, reflecting the full quarter impact of salary increases. Finally, commission expense ratio increased by 0.6 percentage points QOQ to 31.4%, driven by an increased share of revenue from external IP games.
Speaker #2: Labor expenses increased 8.9% QoQ to 182.5 billion won, reflecting the full quarter impact of salary increases. Finally, commission expense ratio increased by 0.6 percentage point QoQ to 31.4%, driven by an increased share of revenue from external IP games.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 마지막으로 신작 라인업에 대해 말씀드리겠습니다. 올 하반기에 나 혼자만의 레벨업 카르마, 샹그릴라 프론티어 7 체감 중, 그리고 프로젝트 이지스까지 총 3종의 신작을 출시할 계획입니다.
Gi-uk Do: 마지막으로 신작 라인업에 대해 말씀드리겠습니다. 올 하반기에 나 혼자만 레벨업: KARMA, 샹그릴라 프론티어: 일곱 최강종, 그리고 프로젝트 이지스까지 총 3종의 신작을 출시할 계획입니다.
Speaker #2: Next, upcoming game lineups. In the second half, we plan to release three new titles: Solo Leveling Karma, a, Shangri-La Frontier: The Seven Colossi, and Project Aegis.
Jiwon Lee: Next, upcoming game lineup. In the H2, we plan to release three new titles: Solo Leveling: KARMA, Shangri-La Frontier: The Seven Colossi, and Project Aegis.
[Translator]: Next, upcoming game lineup. In the H2, we plan to release three new titles: Solo Leveling: KARMA, Shangri-La Frontier: The Seven Colossi, and Project Aegis.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 올해 당사 상반기는 신작 출시와 함께 자산 포트폴리오의 전략적인 리밸런싱을 통해서 재무 건전성을 한층 강화했습니다. 하반기에는 기존작의 라이브 서비스 고도화를 바탕으로 해서 내실을 견고히 하고, 차별화된 신작을 선보일 예정이오니 많은 관심과 성원 부탁드립니다.
Gi-uk Do: 올해 당사 상반기는 신작 출시와 함께 자산 포트폴리오의 전략적인 리밸런싱을 통해서 재무 건전성을 한층 강화했습니다. 하반기에는 기존작의 라이브 서비스 고도화를 바탕으로 해서 내실을 견고히 하고 차별화된 신작을 선보일 예정이오니 많은 관심과 성원 부탁드립니다.
Jiwon Lee: During the H1 of the year, we further reinforced our financial strength through new game launches and the strategic rebalancing of our asset portfolio. Looking ahead to the H2, we will continue to solidify our business fundamentals by enhancing the live services of our existing titles while expanding our lineup with differentiated new releases. We look forward to your continued interest and support.
[Translator]: During the H1 of the year, we further reinforced our financial strength through new game launches and the strategic rebalancing of our asset portfolio. Looking ahead to the H2, we will continue to solidify our business fundamentals by enhancing the live services of our existing titles while expanding our lineup with differentiated new releases. We look forward to your continued interest and support.
Speaker #2: During the first half of the year, we further reinforced our financial strength through new game launches and the strategic rebalancing of our asset portfolio.
Speaker #2: Looking ahead to the second half, we will continue to solidify our business fundamentals by enhancing the live services of our existing titles while expanding our lineup with differentiated new releases.
Speaker #2: We look forward to your continued interest and support.
Gi-uk Do: [Foreign language]
Speaker #3: 네, 이상으로 실적 발표를 마치겠습니다. 궁금한 사항 질문 주시면 답변드리겠습니다.
Gi-uk Do: 이상으로 실적 발표를 마치겠습니다. 궁금한 사항 질문 주시면 답변드리겠습니다.
Speaker #2: That concludes our earnings presentation. We'd be happy to take any questions you may have. Thank you.
Jiwon Lee: That concludes our earnings presentation. We'll be happy to take any questions you may have. Thank you.
[Translator]: That concludes our earnings presentation. We'll be happy to take any questions you may have. Thank you.
Operator: [Foreign language]
Speaker #1: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.
Operator 1: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.
Speaker #4: Now Q&A session will begin. Please press star 1, that is star and 1, if if you have any questions. Questions will be taken according to the order you have pressed the number star 1.
Operator 2: Now Q&A session will begin. Please press star 1, that is star and 1, if you have any questions. Questions will be taken according to the order you have pressed the number star 1. For cancellation, please press star 2, that is star and 2 on your phone.
[Translator]: Now Q&A session will begin. Please press star 1, that is star and 1, if you have any questions. Questions will be taken according to the order you have pressed the number star 1. For cancellation, please press star 2, that is star and 2 on your phone.
Speaker #4: For cancellation, please press star 2, that is star and 2 on your phone.
Operator: [Foreign language]
Speaker #1: 현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다.
Operator 1: 현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다.
Speaker #4: Currently there are no participants with questions. Please press star 1, star and 1 to give your question.
Operator 2: Currently, there are no participants with questions. Please press star 1, star and 1 to give your question.
[Translator]: Currently, there are no participants with questions. Please press star 1, star and 1 to give your question.
Operator: [Foreign language]
Speaker #1: 처음으로 질문해 주실 분은 HSBC의 김준현 님입니다.
Operator 1: 처음으로 질문해 주실 분은 HSBC의 김준현 님입니다.
Speaker #4: The first question will be provided by Junhyun Kim from HSBC. Please go ahead with your question.
Operator 2: The first question will be provided by Junhyun Kim from HSBC. Please go ahead with your question.
[Translator]: The first question will be provided by Junhyun Kim from HSBC. Please go ahead with your question.
Junhyun Kim: [Foreign language]
Speaker #3: 아직 질문 기회 감사드립니다. 저 하나 질문 있는데요. 저희 최근에 이제 주가도 하락을 하면서 시장이 우려를 사실 보면 저희의 이제 성장성이나 이런 쪽에 대한 이제 우려들도 좀 큰 것 같습니다.
Junhyun Kim: 질문 주셔서 감사드립니다. 하나 질문이 있는데요. 최근에 주가도 하락을 하면서 시장의 우려를 보면 저희의 성장성이나 이런 쪽에 대한 우려들도 좀 큰 것 같습니다. 그 이유가 아무래도 상반기 때 출시되었던 게임들이 시장의 기대치보다는 조금 미치지 못하는 모습이었다 보니 하반기 신작 라인업을 봤을 때 아무래도 상반기 때에 비해서 이런 IP 파워나 이런 것들이 좀 덜 알려져 있다라고 보여지기 때문에 신작 출시에 대한 기대치도 지금은 낮은 상황인데요. 저희가 하반기뿐만 아니라 2027년, 그래서 내년, 내후년 이렇게 봤을 때 저희가 자산 유동화나 이런 걸 통해서 재무제표가 건강해지고 이런 측면은 분명히 긍정적이기도 하지만, 저희는 원래 다작을 통해서 실적 성장을 견인해 왔던 회사인 만큼 2027년에 대한 신작에 대한 정보들이 너무 없다 보니까 여기에 대해서 지금 컬러를 주실 수 있으면 신작 개발 현황이나 아니면 2027년도에 출시할 수 있는 게임 개수, 그리고 2026년 대비해서 어떤 회사의 전망치가 있다면 공유해 주시면 감사하겠습니다.
Speaker #3: 그 이유가 아무래도 상반기 때 출시되었던 게임들이 시장의 기대치보다는 조금 미치지 못하는 모습이었다 보니, 이제 하반기 신작 라인업을 봤을 때 아무래도 좀 상반기 때에 비해서 좀 이런 IP 파워나 이런 것들이 좀 덜 알려져 있다라고 좀 보여지기 때문에 좀 그래서 저희 신작 출시에 대한 기대치도 좀 지금은 낮은 상황인데요.
Speaker #3: 저희가 하반기뿐만 아니라 이제 27년, 그래서 내년 내후년 이렇게 봤을 때 저희가 좀 자산 유동화나 이런 걸 통해서 재무제표가 좀 건강해지고 이런 측면은 분명히 긍정적이기도 하지만, 또 이 신작 출시에 대한 저희는 원래 다작을 통해서 좀 실적 성장을 견인해 왔던 회사인 만큼 27년에 대한 사실 신작에 대한 그런 정보들이 너무 없다 보니까, 여기에 대해서 좀 지금 좀 컬러를 주실 수 있으면 좀 신작 개발 현황이나 아니면 27년도의 출시할 수 있는 게임 개수, 그리고 26년 대비해서 어떤 좀 회사의 전망치가 있다면 좀 공유해 주시면 감사하겠습니다.
Speaker #2: Thank you very much for this opportunity to ask questions. My question is related to what's happening recently. We have seen your share prices fall, and I think if I were to summarize the concern from the market, and this is actually centering around the growth of the company going forward.
Jiwon Lee: Thank you very much for this opportunity to ask question. My question is related to what's happening recently. We have seen your share prices fall. I think if I were to summarize the concern from the market, this is actually centering around the growth of the company going forward. That's really as a result of the fact that the new titles that you have launched in H1 did not meet the market expectations. I know that you have new titles that you will be releasing in H2, but those titles have less well-known IP. That's why in the marketplace at this present time, there is relatively low expectation in respect to the performance of the upcoming new title releases.
[Translator]: Thank you very much for this opportunity to ask question. My question is related to what's happening recently. We have seen your share prices fall. I think if I were to summarize the concern from the market, this is actually centering around the growth of the company going forward. That's really as a result of the fact that the new titles that you have launched in H1 did not meet the market expectations. I know that you have new titles that you will be releasing in H2, but those titles have less well-known IP. That's why in the marketplace at this present time, there is relatively low expectation in respect to the performance of the upcoming new title releases.
Speaker #2: And that's really as a result of the fact that the new titles that you have launched in the first half did not meet the market expectations.
Speaker #2: And I know that you have new titles that you will be releasing in the second half, but those titles have well-known IPs, and that's why in the marketplace at this present time, there is relatively low expectation in respect to the performance of the upcoming new title releases.
Speaker #2: And so if looking out to not only the second half of 2026, but also as we look out further to '27 and 2028, I know that the company has made great efforts and has shown results in improving its financial strength through asset securitization, which is an encouraging sign.
Jiwon Lee: If looking out to not only the H2 of 2026, but also as we look out further to 2027 and 2028, I know that the company has made great efforts and has shown results in improving its financial strength through asset securitization, which is an encouraging sign. As you know, Netmarble is a company that has been able to drive strong growth as a result of being able to release multiple titles. It would be very helpful if you could get additional color in respect to the titles that you will be releasing specifically, for example, in 2027, because at present there is very little information available. If it's possible, could you give us additional information related to what is the current progress of game development?
[Translator]: If looking out to not only the H2 of 2026, but also as we look out further to 2027 and 2028, I know that the company has made great efforts and has shown results in improving its financial strength through asset securitization, which is an encouraging sign. As you know, Netmarble is a company that has been able to drive strong growth as a result of being able to release multiple titles. It would be very helpful if you could get additional color in respect to the titles that you will be releasing specifically, for example, in 2027, because at present there is very little information available.
Speaker #2: But as you know, Netmarble is a company that has been able to drive strong growth as a result of being able to release multiple titles.
Speaker #2: And so it would be very helpful if you could get additional color in respect to the titles that you will be releasing specifically, for example, in 2027, because at present there is very little information available.
Speaker #2: And so if it's possible, could you give us additional information related to what is the current progress of game development, and if it's possible, can you also share with us the number of new titles that you plan to be launching in 2027?
[Translator]: If it's possible, could you give us additional information related to what is the current progress of game development? If it's possible, can you also share with us the number of new titles that you plan to be launching in 2027? We'd like to actually hear more from the company related to your outlook about your future game pipeline.
Jiwon Lee: If it's possible, can you also share with us the number of new titles that you plan to be launching in 2027? We'd like to actually hear more from the company related to your outlook about your future game pipeline.
Speaker #2: We'd like to actually hear more from the company, related to your outlook about your future game pipeline.
Byung-gyu Kim: [Foreign language]
Speaker #3: 네, 김준현입니다. 저 먼저 그 말씀 주신 거를 조금 정리를 하면, 저희가 그 다작의 런칭을 통해서 성장을 견인해 오는 전략을 취했었는데, 26년을 돌아보면 상반기, 하반기보다는 상반기에 조금 더 기대작이 있었고, 그런 상황에서 기대작이 시장의 기대에 못 미치는 성과를 낸 것으로 보이다 보니까, 26년 하반기와 그 이후 27년, 28년 이렇게 26년과 27, 28년 이 정도 기간에 대한 전망이 조금 모호한 것이 아니냐, 그로 인해서 주가가 조금 정체되는 것은 아닌가, 이런 우려를 주신 것으로 이해를 하겠습니다.
Byung-gyu Kim: 네, 김병규입니다. 먼저 말씀해 주신 거를 조금 정리를 하면 저희가 다작의 런칭을 통해서 성장을 견인해 오는 전략을 취했었는데 26년을 돌아보면 하반기보다는 상반기에 조금 더 기대작이 있었고, 그런 상황에서 기대작이 시장의 기대에 못 미치는 성과를 낸 것으로 보이다 보니까 26년 하반기와 그 이후 27년, 28년 이렇게 26년과 27, 28년 이 정도 기간에 대한 전망이 조금 모호한 것이 아니냐, 그로 인해서 주가가 조금 정체되는 것은 아닌가 이런 우려를 주신 것으로 이해를 하겠습니다. 이런 맥락에서 말씀해 주신 질문은 27년도 라인업에 대해서 전망과 현황 혹은 개수 이런 거 여쭤보셨는데요. 먼저 말씀하신 것이 대체로 맞고, 이런 상황에서 27년도에 대한 현황과 전망 혹은 개수 이런 것들에 대해서 분명히 말씀은 드리려고 하는데, 그거를 먼저 이 콜에서 말씀드리는 것이 기대에 부응한다고 생각하지는 않고, 먼저 저희가 왜 하반기 라인업을 조금 줄였는지에 대해서 설명을 드려야 한다라고 생각을 합니다.
Speaker #3: 그래서 이런 맥락에서 그 말씀 주신 질문은 27년도 라인업에 대해서 전망과 현황, 혹은 개수 이런 걸 여쭤보셨는데요. 그 먼저 저희가 말씀하신 것이 대체로 맞고, 이런 상황에서 27년도에 대한 현황과 전망, 혹은 개수 이런 것들에 대해서 분명히 말씀은 드리려고 하는데, 그거를 먼저 이 콜에서 말씀드리는 것이 기대에 부응한다라고 생각하지는 않고, 먼저 저희가 왜 그 하반기 라인업을 조금 줄였는지에 대해서 설명을 드려야 한다라고 생각을 합니다.
Speaker #3: 그래서 저희가 26년도 하반기 라인업을 선제적으로 조정한 이유는 기본적으로 그 보다 엄격한 런칭의 기준을 셋업할 필요가 있다라고 생각을 했고, 특히 신작을 런칭하다 보면 대규모로 리소스가 투입이 되기 때문에 신작 런칭에 소요되는 리소스를 조금 더 효율적으로 운용해야 되겠다라는 판단이 있었기 때문입니다.
Byung-gyu Kim: 저희가 26년도 하반기에 한 라인업을 선제적으로 조정한 이유는 기본적으로 보다 엄격한 런칭의 기준을 셋업할 필요가 있다라고 생각을 했고, 특히 신작을 런칭하다 보면 대규모로 리소스가 투입이 되기 때문에 신작 런칭에 소요되는 리소스를 조금 더 효율적으로 운용해야 되겠다라는 판단이 있었기 때문입니다.
Jiwon Lee: This is CEO Kim Kyung-kyu, if I were to summarize the question that you have just posed, you mentioned that for Netmarble, historically, we've been able to continue to drive the growth of company by being able to release multiple titles. When we look at what we have been doing this year, you mentioned that the titles that we had planned for the H1 have had more higher market expectations than what we'll be launching in the H2. Unfortunately, the performance of the titles that we did launch in the H1 did not meet market expectations. So you wanted to actually get additional information related to what we plan to do in the remainder of 2026, as well as 2027 and 2028.
[Translator]: This is CEO Kim Kyung-kyu, if I were to summarize the question that you have just posed, you mentioned that for Netmarble, historically, we've been able to continue to drive the growth of company by being able to release multiple titles. When we look at what we have been doing this year, you mentioned that the titles that we had planned for the H1 have had more higher market expectations than what we'll be launching in the H2. Unfortunately, the performance of the titles that we did launch in the H1 did not meet market expectations. So you wanted to actually get additional information related to what we plan to do in the remainder of 2026, as well as 2027 and 2028.
Speaker #2: This is CEO 김병규 and prior to just summarize the question that you have just posed, you mentioned that for Netmarble, historically we've been able to continue to drive the growth of company by being able to release multiple titles.
Speaker #2: And you also and when we look at our what we have been doing this year and you mentioned that the titles that we had planned for the first half have had more higher market expectations than what would be launching in the second half.
Speaker #2: But unfortunately, the performance of the titles that we did launch in the first half did not meet market expectations. And so you wanted to actually get additional information related to what we plan to do in the remainder of 2026, as well as 2027 and 2028, because of this lack of clarity in terms of what to expect going forward in the near term.
Jiwon Lee: Because of this lack of clarity in terms of what to expect going forward in the near term, you are stating that that's really one of the reasons why we have actually seen stagnant performance in our share prices. That's why you asked us if we can actually share the 2027 game release lineup in terms of what our outlook is, the overall status of development, and the number of titles that we are preparing. I do agree with what you have said. At the same time, to talk about the current status of development, the outlook, and the number of titles that we plan for 2027, I'm not sure by talking about this during this call, whether or not I'll be able to meet the expectations of the market.
[Translator]: Because of this lack of clarity in terms of what to expect going forward in the near term, you are stating that that's really one of the reasons why we have actually seen stagnant performance in our share prices. That's why you asked us if we can actually share the 2027 game release lineup in terms of what our outlook is, the overall status of development, and the number of titles that we are preparing. I do agree with what you have said. At the same time, to talk about the current status of development, the outlook, and the number of titles that we plan for 2027, I'm not sure by talking about this during this call, whether or not I'll be able to meet the expectations of the market.
Speaker #2: You are stating that that's really one of the reasons why we have actually seen stagnant performance in our share prices. And that's why you asked us if we can actually share the 2027 game release lineup in terms of what our outlook is, the overall status of development, and the number of titles that we are preparing.
Speaker #2: So I do agree with what you have said. And in but at the same time, to talk about the current status of development, the outlook, and the number of titles that we plan for 2027, I'm not sure by talking about this during this call whether or not I'll be able to meet the expectations of the market.
Speaker #2: We have been able to, and this was done preemptively, we have decided to actually downsize the game lineup that we are going to be releasing for the second half.
Jiwon Lee: We have been able to, this was done preemptively, we have decided to actually downsize the game lineup that we are going to be releasing for the H2. That's because we wanted to actually strengthen and have a tighter criteria in terms of the game launch for the company as well. When you are launching a large-scale new title, this actually requires significant resource input. We felt that at this time it was very much important for us to be quite efficient in how we decide to input these resources for the title releases.
[Translator]: We have been able to, this was done preemptively, we have decided to actually downsize the game lineup that we are going to be releasing for the H2. That's because we wanted to actually strengthen and have a tighter criteria in terms of the game launch for the company as well. When you are launching a large-scale new title, this actually requires significant resource input. We felt that at this time it was very much important for us to be quite efficient in how we decide to input these resources for the title releases.
Speaker #2: That's because we wanted to actually strengthen and have a more tighter criteria in terms of the game launch for the company as well. Because when you are launching a large-scale new title, this actually requires significant resource input.
Speaker #2: But we felt that at this time, it was very much important for us to be quite efficient in how we decide to input these resources for the title releases.
Byung-gyu Kim: [Foreign language]
Speaker #3: 그 그래서 저희가 선제적으로 라인업을 좀 조정한 맥락과 배경을 조금 더 말씀드려야 될 것 같은데, 저희가 이렇게 조정을 하게 된 근본적인 배경은 그 말씀드린 것처럼 신작의 효율성, 신작 런칭에 소요되는 리소스를 효율적으로 운영하는 것도 있지만, 그것이 궁극의 목표는 아니고, 그 라이브 게임의 PLC를 확장하는 것, 궁극적으로 여기를 타겟을 하고 있기 때문에 이런 조치를 취하고 있는 것입니다.
Byung-gyu Kim: 저희가 선제적으로 라인업을 조정한 맥락과 배경을 조금 더 말씀드려야 될 것 같은데, 저희가 이렇게 조정을 하게 된 근본적인 배경은 말씀드린 것처럼 신작 런칭에 소요되는 리소스를 효율적으로 운영하는 것도 있지만, 그것이 궁극의 목표는 아니고 라이브 게임의 PLC를 확장하는 것, 궁극적으로 여기를 타겟을 하고 있기 때문에 이런 조치를 취하고 있는 것입니다. 잘 아시겠지만 저희가 그동안 다작의 런칭을 통해서 성장을 견인한다는 것의 이면에는 상대적으로 이미 런칭한 게임들의 라이프 사이클이 상대적으로 짧다는 우려가 깔려져 있었고, 저희도 이러한 우려에 대해서 공감을 하고 있었기 때문에 보다 근본적으로 이 영역에 있어서 체질을 개선하는 것이 시장의 기대에 종국적으로 부합하는 것이라고 믿습니다. 선제적으로 신작 라인업을 조금 타이트하게 가져가면서도, 기존의 라이브 게임들의 운영 PLC를 확장하는 것, 하반기에 주된 전략의 핵심이 여기에 있다고 하는 것을 꼭 말씀드리고 싶습니다.
Speaker #3: 그 잘 아시겠지만, 저희가 그동안 다작의 런칭을 통해서 성장을 견인한다는 것의 이면에는 상대적으로 이미 런칭한 게임들의 라이프 사이클이 상대적으로 짧다라는 우려가 깔려져 있었고, 저희도 이러한 우려에 대해서 공감을 하고 있었기 때문에, 보다 근본적으로 이 영역에 있어서 체질을 개선하는 것이 시장의 기대에 종국적으로 부합하는 것이라고 믿습니다.
Speaker #3: 그래서 선제적으로 그 신작 라인업을 조금 타이트하게 가져가면서도, 그러나 그 기존의 라이브 게임들의 운영 PLC를 확장하는 것, 하반기에 주된 전략의 핵심이 여기에 있다라고 하는 것을 꼭 말씀드리고 싶습니다.
Speaker #2: And that is why, as I just mentioned, we preemptively made adjustments to the future game release lineup. And I want to give you a little bit more context and background as to why the company has decided to do this.
Jiwon Lee: That is why, as I just mentioned, we preemptively made adjustments to the future game release lineup. I want to give you a little bit more context and background as to why the company has decided to do this. Fundamentally, as I've mentioned, we have decided that it's very important for us to efficiently utilize our resources in launching new titles. That wasn't the ultimate reason for making such preemptive decision. The main reason was really the focus that we have to continue to enhance our live servicing of the existing games. What's quite important for the company is to make sure that we are able to extend the life, the PLC of the games that we have already released. Going back to the comment that you mentioned, the company has been able to significantly drive growth by launching multiple titles.
[Translator]: That is why, as I just mentioned, we preemptively made adjustments to the future game release lineup. I want to give you a little bit more context and background as to why the company has decided to do this. Fundamentally, as I've mentioned, we have decided that it's very important for us to efficiently utilize our resources in launching new titles. That wasn't the ultimate reason for making such preemptive decision. The main reason was really the focus that we have to continue to enhance our live servicing of the existing games. What's quite important for the company is to make sure that we are able to extend the life, the PLC of the games that we have already released.
Speaker #2: Fundamentally, as I mentioned, we have decided that it's very important for us to efficiently utilize our resources in launching new titles. But that wasn't the ultimate reason for making such preemptive decision.
Speaker #2: The main reason was really the focus that we have to continue to enhance our live servicing of the existing games. Because what's quite important for the company is to make sure that we are able to extend the life of the PLC of the games that we have already released.
Speaker #2: And going back to the comment that you mentioned, the company has been able to significantly drive growth by launching multiple titles. But what that also entails is that because of all the games that we have released in the past, that we had to also do a very good management of the PLC of these titles so that we're able to expand the life of these titles.
[Translator]: Going back to the comment that you mentioned, the company has been able to significantly drive growth by launching multiple titles. What that also entails is that because of all the games that we have released in the past, that we had to also do a very good management of the PLC of these titles so that we are able to expand the life of these titles. That was really the main driver, and we felt that by being able to improve our fundamentals in this area would actually be meeting the market expectations. That is the reason why we have decided to actually tighten the management of new title releases and at the same time continue to make sure that we're able to expand the PLC of existing titles.
Jiwon Lee: What that also entails is that because of all the games that we have released in the past, that we had to also do a very good management of the PLC of these titles so that we are able to expand the life of these titles. That was really the main driver, and we felt that by being able to improve our fundamentals in this area would actually be meeting the market expectations. That is the reason why we have decided to actually tighten the management of new title releases and at the same time continue to make sure that we're able to expand the PLC of existing titles.
Speaker #2: And so that was really the main driver. And we felt that by being able to improve our fundamentals in this area, would actually be meeting the market expectations and that's why that and that is the reason why we have decided to actually tighten the management of new title releases.
Speaker #2: And at the same time, continue to make sure that we're able to expand the PLC of existing titles.
Byung-gyu Kim: [Foreign language]
Speaker #3: 그 잘 아시다시피 그동안 Netmarble이 받았던 시장에서의 평가 중에 하나는 다작을 런칭하는 것에는 능하고, 다만 상대적으로 게임의 PLC가 짧다라는 우려가 있었는데, 그 사실은 저희가 예를 들어서 7세대 그랜드 크로스오버 같은 저희가 서비스한 지 7년이 넘은 게임들 같은 경우를 보면, 24년도부터 시작을 해서 연간 매출이 1,000억을 넘는 상황에서 곧 24년에서 25년, 그다음에 25년에서 26년, 올해 상반기까지의 추이를 보면, 지속적으로 매출이 성장하고 있는 그래프를 보여주고 있습니다.
Byung-gyu Kim: 잘 아시다시피 그동안 넷마블이 받았던 시장에서의 평가 중에 하나는 다작을 런칭하는 것에는 능하고 다만 상대적으로 게임의 PLC가 짧다는 우려가 있었는데, 사실은 저희가 예를 들어서 일곱 개의 대죄: GRAND CROSS와 같은 저희가 서비스한 지 7년이 넘은 게임들 같은 경우를 보면 24년도부터 시작을 해서 연간 매출이 1,000억을 넘는 상황에서, 24년에서 25년, 그다음에 25년에서 26년 올해 상반기까지의 추이를 보면 지속적으로 매출이 성장하고 있는 그래프를 보여주고 있습니다. 즉, 모바일 게임 시장에서 서비스한 지 7년 이상 된 게임이 연간 매출은 1,000억 이상을 기록하면서도 게다가 점증적으로 매출이 증가하고 있는 게임이 있다라고 하는 것은 사실은 PLC 측면에서 상당히 강력한 잠재력을 가지고 있다는 것을 의미하고 있고, 이런 실증적인 사례를 기반으로 해서 다른 저희의 수많은 라이브 게임들에도 이러한 노하우들을 적용을 해서 라이프 사이클과 매출을 점증적으로 늘려가는 전략을 구사하고 있고, 이 전략에 좀 더 하반기에 집중하겠다는 의미입니다만, 저희가 예정되어 있는 권역의 확장 등은
Speaker #3: 즉, 모바일 게임 시장에서 7년 서비스한 지 7년 이상 된 게임이 연간 매출은 1,000억 이상을 기록하면서도, 게다가 점증적으로 매출이 증가하고 있는 게임이 있다라고 하는 것은 사실은 PLC의 측면에서 상당히 강력한 어떤 잠재력을 가지고 있다는 것을 의미하고 있고, 우리 이런 실증적인 기반 사례를 기반으로 해서 다른 저희의 수많은 라이브 게임들에도 이러한 노하우들을 적용을 해서 그 라이프 사이클과 매출을 점증적으로 늘려가는 전략을 구사하고 있고, 이 전략에 좀 더 하반기에 집중하겠다는 의미입니다.
Speaker #3: 의미입니다만, 그러나 저희가 예정되어 있는 권역의 확장 등은 3분기와 4분기에 이미 실행되었거나 순차적으로 실행이 될 예정이기 때문에, 저희가 신작의 라인업을 다소간 조정한다 하더라도, 그것이 시장에서 우려하는 것만큼 매출의 하락으로 이어지지는 않을 것으로 생각을 하고 있습니다.
Byung-gyu Kim: 3분기와 4분기에 이미 실행되었거나 순차적으로 실행이 될 예정이기 때문에 저희가 신작의 라인업을 다소간 조정한다 하더라도 그것이 시장에서 우려하는 것만큼 매출의 하락으로 이어지지는 않을 것으로 생각을 하고 있습니다.
Speaker #2: And for Netmarble, the overall market assessment of the company was that our strength was being able to actually launch multiple titles. But at the same time, the market said that our weakness was having a short PLC.
Jiwon Lee: For Netmarble, the overall market assessment of the company was that our strength was being able to actually launch multiple titles. At the same time, the market said that our weakness was having a short PLC. If I were to actually talk about The Seven Deadly Sins: Grand Cross, for example, it actually has been servicing for seven years and being able to actually produce a revenue of over KRW 100 billion in 2024, 2025, as well as in 2026. It's not just staying flat, but we're actually seeing revenue being increased on a year-by-year basis. For a mobile game to be able to be in service for seven years and still to be able to report more than KRW 100 billion in revenue is not something that is very common for mobile games.
[Translator]: For Netmarble, the overall market assessment of the company was that our strength was being able to actually launch multiple titles. At the same time, the market said that our weakness was having a short PLC. If I were to actually talk about The Seven Deadly Sins: Grand Cross, for example, it actually has been servicing for seven years and being able to actually produce a revenue of over KRW 100 billion in 2024, 2025, as well as in 2026. It's not just staying flat, but we're actually seeing revenue being increased on a year-by-year basis. For a mobile game to be able to be in service for seven years and still to be able to report more than KRW 100 billion in revenue is not something that is very common for mobile games.
Speaker #2: But if I were to actually talk about the seven deadly sins grand plot, for example, it actually has been servicing for seven years. And being able to actually produce a revenue of over 100 billion won in 24, 25, as well as in 2026.
Speaker #2: And it's not just staying flat, but we're actually seeing revenue being increased on a year-by-year basis. And for a mobile game, to be able to be in service for seven years and still to be able to report more than 100 billion won in revenue is not something that is very common for mobile games.
Speaker #2: But we continue to see that we're able to generate additional revenue growth year by year with this title. And just once again, it's a testament to the fact that it has a very strong potential for a long extended PLC.
Jiwon Lee: We continue to see that we're able to generate additional revenue growth year by year with this title. This, once again, is a testament to the fact that it has a very strong potential for a long extended PLC. This is an evidence that we have been able to secure as a company, and we want to actually be able to apply this to other live games that we have in place. For the focus for the company in H2 is to continue to drive revenue and at the same time be able to focus on extending the PLC of our game titles. Having said that, we will still continue on course with the planned regional expansions for Q3 and Q4.
[Translator]: We continue to see that we're able to generate additional revenue growth year by year with this title. This, once again, is a testament to the fact that it has a very strong potential for a long extended PLC. This is an evidence that we have been able to secure as a company, and we want to actually be able to apply this to other live games that we have in place. For the focus for the company in H2 is to continue to drive revenue and at the same time be able to focus on extending the PLC of our game titles. Having said that, we will still continue on course with the planned regional expansions for Q3 and Q4.
Speaker #2: And this is an evidence that we have been able to secure as a company. And we want to actually be able to apply this to other live games that we have in place.
Speaker #2: So for the focus for the company in the second half is to continue to drive revenue. But at the same time, be able to focus on extending the PLC of our game titles.
Speaker #2: But having said that, we'll still continue on course with the planned regional expansions for Q3 and Q4. Already, regional expansions have been executed and will be on course to be able to follow the regional expansion plan that we have for the remainder of 2026.
Jiwon Lee: Already regional expansions have been executed and will be on course to be able to follow the regional expansion plan that we have for the remainder of 2026. By being able to actually adjust the new title release lineup in the H2, that's not going to exactly equate to the decline in the revenue for the company as some people in the market may be concerned about. That's quite the contrary.
[Translator]: Already regional expansions have been executed and will be on course to be able to follow the regional expansion plan that we have for the remainder of 2026. By being able to actually adjust the new title release lineup in the H2, that's not going to exactly equate to the decline in the revenue for the company as some people in the market may be concerned about. That's quite the contrary.
Speaker #2: And so by being able to actually adjust the new title release lineup in the second half, that's not going to be exactly equate to the decline in the revenue for the company as some people in the market may be concerned about.
Speaker #2: That's quite the contrary.
Byung-gyu Kim: [Foreign language]
Speaker #3: 네, 그 마지막으로 신장에 관련해서도 그 질문 주시는 그럼에도 불구하고 충분히 공감하고 있고, 그것에 대해서는 말씀드리는 자리를 한번 마련하도록 하겠습니다. 감사합니다.
Byung-gyu Kim: 네, 말씀하신 신작에 관련해서도 질문이 있으시지만 그럼에도 불구하고 충분히 건강하고 있고, 그것에 대해서는 말씀드리는 자리를 한번 마련하도록 하겠습니다. 감사합니다.
Speaker #2: But going back to your comment and warning additional color on the new title releases, I fully understand why you have asked this comment. And so I'll make sure that we actually set aside a separate time to be able to go through the pipeline with you.
Jiwon Lee: Going back to your comment, wanting additional color on the new title releases, I fully understand why you have asked this comment. I'll make sure that we actually set aside a separate time to be able to go through the pipeline with you.
Jiwon Lee: Going back to your comment, wanting additional color on the new title releases, I fully understand why you have asked this comment. I'll make sure that we actually set aside a separate time to be able to go through the pipeline with you.
Operator: [Foreign language]. Next question, please.
Operator 2: 다음 질문 받도록 하겠습니다. Next question, please.
Speaker #1: 다음 질문 받도록 하겠습니다. Next question, please.
Operator: [Foreign language]
Speaker #4: 다음으로 질문해 주실 분은 유진 투자증권의 정희훈 님입니다.
Operator 1: 다음으로 질문해 주실 분은 유진투자증권의 정희준 님입니다.
Speaker #5: The following question will be presented by Uihun Chung from Eugene Investment and Securities. Please go ahead with your question.
Operator 2: The following question will be presented by Hee-joon Jeong from Eugene Investment & Securities. Please go ahead with your question.
[Translator]: The following question will be presented by Hee-joon Jeong from Eugene Investment & Securities. Please go ahead with your question.
Speaker #3: 네, 안녕하십니까. 유진투자증권 정희훈입니다. 저 짧게 한 가지만 질문드리려고 하는데, 저희 비용에서 최근에 마켓 수수료 인하와 관련해서 어느 정도로 지금 이루어졌고, 또 연말까지 어느 정도 타겟하시는지 궁금합니다.
[Analyst] (Eugene Investment & Securities): 안녕하십니까? 유진투자증권 정우인입니다. 짧게 한 가지만 질문드리려고 하는데, 저희 비용에서 최근에 마켓 수수료 인하와 관련해서 어느 정도로 지금 이루어졌고, 또 연말까지 어느 정도 타깃하시는지 궁금합니다. 추가적으로 하반기 때 마케팅 비용 관련해서도 좀 가이던스 주시면 감사드리겠습니다.
Hoon Jeong: [Foreign language]
Speaker #3: 추가적으로 하반기 때 마케팅 비용 관련해서도 좀 가이던스 주시면 감사드리겠습니다.
Speaker #2: Thank you for the opportunity. I just have a short question related to your expense side. I just want to get from the company any progress update in respect to the reduction in the a year-end target, you can share.
Jiwon Lee: Thank you for the opportunity. I just have a short question related to your spend side. I just wanted to get from the company any progress update in effect to the reduction in the market commission, and if you have a year-end target you can share, please provide that as well. If it's possible, can you also give us a marketing spend guidance for the H2?
[Translator]: Thank you for the opportunity. I just have a short question related to your spend side. I just wanted to get from the company any progress update in effect to the reduction in the market commission, and if you have a year-end target you can share, please provide that as well. If it's possible, can you also give us a marketing spend guidance for the H2?
Speaker #2: Please provide that as well. And also, if it's possible, can you also give us a marketing expense guidance for the second half?
Gi-uk Do: [Foreign language]
Gi-uk Do: 네, Gi-uk Do입니다. 마켓 수수료 관련돼서는 지난 분기 때도 나왔던 질문인데 그때랑 크게 다르지 않는 바를 다시 한번 말씀을 드리자면, 올해까지는 실질적인 영향이 미비할 거고 내년부터 본격적으로 그 효과가 나타날 것으로 보이는데, 구체적인 내용을 지금 상태에서 예측하긴 힘든 부분이 있는데 지금은 구체적인 숫자를 말씀드리긴 힘들겠지만 내년부터는 유의미한 수준에 있어서의 어떤 효과로 저희는 나올 수 있을 거라고 기대를 하고 있고요. 두 번째, 마케팅비에 대한 부분은 상반기에는 신작에 대한 출시로 인해서 기존보다 마케팅비 절대 금액 및 비중이 상승되어진 건 사실입니다. 근데 하반기에는 절대 금액 수준이 기존의 분기별 지출액하고 비슷한 수준으로 다시 수렴되지 않을까 예상하고 있습니다.
Speaker #3: 네, 도기욱입니다. 마켓 수수료 관련돼서는 지난 분기 때도 나왔던 질문인데, 그때랑 크게 다르지 드리자면, 올해까지는 실질적인 영향이 미비할 거고, 내년부터 본격적으로 그 효과가 나타날 것으로 보이는데, 그 구체적인 내용을 구체적인 지금 상태에서 예측하긴 힘든 부분이 있는데, 지금 현재 구체적인 숫자를 말씀드리기 힘들겠지만, 내년부터는 유의미한 수준에 있어서의 어떤 효과로 저희는 나올 수 있을 거라고 기대를 하고 있고요.
Speaker #3: 두 번째, 마케팅비에 대한 부분은 상반기에는 신작에 대한 출시로 인해서 기존보다 마케팅비 절대 금액 및 비중이 상승되어진 건 사실입니다. 근데 하반기에는 절대 금액 수준이 기존의 분기별 지출액하고 비슷한 수준으로 다시 수렴되지 않을까 예상하고 있습니다.
Speaker #2: Moving to your question related to the market commission. This is a question that was also asked in the previous quarter. And no additional changes to actually report.
Jiwon Lee: Moving to your question related to the market commission. This is a question that was also asked in the previous quarter, and no additional changes to actually report. As I've actually said before, the impact for this year will be quite limited. The actual full-scale impact will start to be felt from 2027. At this point in time, I don't think I can actually talk about specific numbers, but we'll see meaningful impact on the overall expense coming in starting from 2027. In respect to the marketing expense guidance, in the H1 of this year, we had new title releases, and on an absolute basis, whether we're talking about the amount or the ratio, we had seen increases. However, I believe that as we move into the H2, we'll actually be performing as we have done in previous quarters.
[Translator]: Moving to your question related to the market commission. This is a question that was also asked in the previous quarter, and no additional changes to actually report. As I've actually said before, the impact for this year will be quite limited. The actual full-scale impact will start to be felt from 2027. At this point in time, I don't think I can actually talk about specific numbers, but we'll see meaningful impact on the overall expense coming in starting from 2027. In respect to the marketing expense guidance, in the H1 of this year, we had new title releases, and on an absolute basis, whether we're talking about the amount or the ratio, we had seen increases. However, I believe that as we move into the H2, we'll actually be performing as we have done in previous quarters.
Speaker #2: As I've actually said, before, the impact for this year will be quite limited. The actual full-scale impact will start to be felt from 2027.
Speaker #2: At this point in time, I don't think I can actually talk about specific numbers, but we'll see meaningful impact on the overall expense coming in starting from 2027.
Speaker #2: And in respect to the marketing expense guidance, in the first half of this year, we had new title releases and on an absolute basis, whether we're talking about the amount or the ratio, we had seen increases.
Speaker #2: However, I believe that as we move into the second half, we'll actually be performing as we have done in previous quarters.
Operator: [Foreign language]
Jiwon Lee: 다음 질문 받겠습니다.
Speaker #1: 다음 질문 받겠습니다.
Speaker #2: Next question, please.
Jiwon Lee: Next question, please.
[Translator]: Next question, please.
Operator: [Foreign language]
Speaker #4: 현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다.
Jiwon Lee: 현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다.
Speaker #5: Currently, there are no participants with questions. Please press star 1, star, and 1 to give your question.
Jiwon Lee: Currently, there are no participants with questions. Please press star one star and one to give your question.
[Translator]: Currently, there are no participants with questions. Please press star one star and one to give your question.
Operator: [Foreign language]
Speaker #1: 먼저 추가 질문이 없으시면 이것으로 넷마블 2026년 2분기 경영실적 발표를 마치겠습니다. 추가 질문이 있으신 분들은 당사 IR팀으로 연락 주시기 바랍니다. 참석해 주신 여러분께 진심으로 감사드립니다.
Jiwon Lee: 이상 추가 질문이 없으시면 이것으로 Netmarble 2026년 2분기 경영실적 발표를 마치겠습니다. 추가 질문이 있으신 분들은 당사 IR팀으로 연락 주시기 바랍니다. 참석해 주신 여러분께 진심으로 감사드립니다.
Speaker #2: If there are no further questions, we'll conclude the 2026 Q2 earnings presentation. For any additional inquiries, please feel free to reach out to our IR team.
Jiwon Lee: If there are no further questions, we will conclude the 2026 Q2 earnings presentation. For any additional inquiries, please feel free to reach out to our IR team. Thank you once again for your participation.
[Translator]: If there are no further questions, we will conclude the 2026 Q2 earnings presentation. For any additional inquiries, please feel free to reach out to our IR team. Thank you once again for your participation.
