Netmarble's Q2 Revenue Falls to $502.5M Despite Promising New Launches
South Korean publisher faces year-on-year decline, but strong new titles provide a glimmer of hope for the future.
Published: August 8, 2025A Mixed Financial Quarter
South Korean mobile game publisher Netmarble has reported its financial results for the second quarter, revealing a mixed bag of performances. The company's revenue declined by 8.2% year-over-year, settling at $502.5 million. This dip in sales comes despite a sequential increase from the previous quarter, driven by the strong debuts of new titles. Operating profit also saw a decline, down 9% year-over-year to $70.8 million, though it showed a significant increase of 102% from Q1. Net profit was similarly affected, down 1.2% year-over-year but up 100% quarter-on-quarter to $112.1 million. These figures indicate that while Netmarble is facing some headwinds, its recent efforts are beginning to pay off, signaling a potential turnaround in the latter half of the year.
The bright spots in the company's portfolio were the newly launched games, 'Seven Knights Re:Birth' and 'RF Online Next,' which were its biggest revenue generators. Each of these titles accounted for a substantial 13% and 9% of the quarter's revenue, respectively, outperforming many of the company's long-running hits like 'Marvel Contest of Champions' and 'Solo Leveling: ARISE.' The company’s revenue was geographically diverse, with North America leading at 35%, followed closely by Korea (34%), Europe (12%), and Japan (6%). The genre split showed a strong reliance on RPGs, which accounted for 42% of sales, and casual games at 33%, with MMORPGs making up a smaller but still significant 18%.
Looking Ahead: The Year to Come
Netmarble's CEO, Byung-gyu Kim, expressed optimism for the future, citing the company's enhanced cost efficiency and the strong performance of its new titles as a foundation for carrying "this upward momentum" into the second half of 2025. The company has a robust pipeline of new games planned, including two major global releases: 'The Seven Deadly Sins: Origin' for PS5, Steam, and mobile, and 'Solo Leveling: Arise Overdrive' for PC and console. Additionally, Netmarble is planning a global expansion for 'Seven Knights Re:Birth' after its successful debut in Korea. The company is also preparing to launch new titles such as 'The King Of Fighters AFK,' 'StoneAge: Pet World,' and 'Mongil: Star Dive' worldwide, as well as new Korean-exclusive MMORPGs like 'Vampir' and 'Project SOL.'
“We are committed to carrying this upward momentum in the second half of 2025 by leveraging the launch of new titles and expanding our global reach with both upcoming and current games.”
The financial report paints a picture of a company in transition. While legacy titles may be showing signs of a slowdown, the success of new launches suggests that Netmarble's development and marketing strategies for new IP are effective. The company's strategy of launching new titles to offset declines in older ones is a common approach in the mobile gaming industry, and Netmarble's execution appears to be solid. The focus on a diverse portfolio of genres and a wide geographical reach, particularly in North America, provides a strong foundation for future growth. The upcoming slate of games, which includes both mobile and cross-platform titles, demonstrates a strategic effort to diversify revenue streams and appeal to a broader audience. As Netmarble works to capitalize on the success of its recent launches and prepares for a series of major new releases, the company is well-positioned to rebound in the coming quarters and regain its growth trajectory. The industry will be watching closely to see if this planned expansion and new title strategy can successfully reverse the year-over-year decline and lead to a period of renewed profitability and market dominance for the South Korean gaming giant.
Netmarble's Q2 performance is a classic example of the challenges and opportunities facing long-established mobile gaming companies. The mobile gaming market is incredibly dynamic, with new trends and hits emerging constantly, making it difficult for older titles to maintain their revenue momentum. Netmarble's reliance on a mix of legacy and new games to drive revenue is a delicate balancing act. The strong performance of 'Seven Knights Re:Birth' and 'RF Online Next' is a positive signal, indicating that the company still has the ability to create new hits. However, the year-over-year revenue decline highlights the fierce competition and the need for a continuous flow of new, successful titles. The company's plan to launch major global titles like 'The Seven Deadly Sins: Origin' and 'Solo Leveling: Arise Overdrive' is a key part of its strategy to re-engage with a global audience and expand its presence beyond its core markets. This diversification, both in terms of genre (from RPGs to casual and MMORPGs) and platform (PC, console, and mobile), is essential for long-term survival in the volatile gaming industry. The financial results from Q2, while mixed, offer a clear picture of a company navigating these challenges with a clear plan for the future. The success of its upcoming titles will be the ultimate test of its strategic direction.
