Earnings call transcript: Netmarble’s Q3 2025 sees revenue growth, new game launches

Netmarble reported a 7.5% year-over-year increase in revenue for the third quarter of 2025, reaching KRW 696.0 billion. The company’s EBITDA also saw a significant rise of 19.1% compared to the previous year. Key game releases and strategic cost management were highlighted as drivers of this performance.

Key Takeaways

• Q3 2025 revenue was KRW 696.0 billion, a 7.5% increase year-over-year.
• EBITDA grew by 19.1% year-over-year, reaching KRW 122.4 billion.
• New game releases, such as "Vampyr" and "Seven Knights Rebirth," contributed to strong domestic and global performance.
• Labor expenses decreased both quarterly and annually, reflecting efficiency improvements.
• Net income for the quarter was KRW 40.6 billion.

Company Performance

Netmarble’s third-quarter performance demonstrated resilience and strategic growth, as evidenced by a 7.5% year-over-year increase in revenue. The company’s ability to launch successful games like "Vampyr," which topped domestic app store charts, and "Seven Knights Rebirth," which had a global launch, underscored its strong market position. Despite a 3% quarter-over-quarter revenue decline, the company maintained robust annual growth. The gaming industry continues to be competitive, but Netmarble’s diverse portfolio and strategic focus on original IP development have positioned it well against competitors.

Financial Highlights

• Revenue: KRW 696.0 billion (+7.5% YoY, -3% QoQ)
• EBITDA: KRW 122.4 billion (+19.1% YoY, -6.6% QoQ)
• EBITDA Margin: 17.6%
• Operating Profit: KRW 90.9 billion
• Net Income: KRW 40.6 billion
• Net Income (Attributable to Shareholders): KRW 37.5 billion

Outlook & Guidance

Looking ahead, Netmarble expects growth in the fourth quarter driven by global expansions and the release of new titles. The company is optimistic about its performance in 2026, with plans to launch "Seven Deadly Sins: Origin" and "Mongil Stardive" in the first quarter. Netmarble continues to focus on diversifying its game portfolio to sustain its competitive edge.

Executive Commentary

Giwook Do, CFO, highlighted the company’s strategic initiatives, stating, "We are thoroughly preparing high-quality new titles that cover a variety of platforms and genres." He also emphasized the company’s focus on workforce efficiency, noting, "Our aim is to drive the efficiency of our workforce, maintaining the current headcount."

Risks and Challenges

• Market Saturation: The gaming market’s competitiveness may impact Netmarble’s ability to capture new users.
• Exchange Rate Fluctuations: As a global company, Netmarble is exposed to currency risks that could affect profitability.
• Regulatory Changes: Potential changes in app store policies or gaming regulations could impact operations.
• Economic Conditions: Global economic instability might affect consumer spending on games.
• Technological Advancements: Rapid technological changes require continuous innovation to stay competitive.

Q&A

During the earnings call, analysts inquired about the potential impact of the Google-Epic Games app commission agreement on Netmarble’s operations. The company clarified that it continues to monitor developments that could have external impacts. Additionally, discussions included non-operating losses related to HYBE share valuation and strategic considerations for upcoming game releases.

Full transcript - Netmarble Games Corp (251270) Q3 2025:

Conference Moderator: Good morning and good evening. Thank you all for joining the conference call for the Netmarble earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and one on your phone during the Q&A. Now we will begin the presentation on Netmarble’s third quarter of fiscal year 2025 earnings results.

Jiwon Lee, Head of IR Team, Netmarble: 안녕하십니까, 넷마블 IR 팀장 이지원입니다. 바쁘신 와중에 넷마블의 2025년 3분기 실적 발표 설명회에 참석해 주신 투자자 및 애널리스트 여러분들께 진심으로 감사 말씀드립니다. 현재 이 자리에는 김병규 대표, 도규욱 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 넷마블 도규욱 CFO가 실적 발표를 진행하도록 하겠습니다.

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 2025 Q3 earnings conference call amidst your busy schedule. Present with us today are CEO Byeongyu Kim, CFO Giwook 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. Now, I will hand it over to our CFO, Giwook Do, to proceed with the earnings presentation.

Giwook Do, CFO, Netmarble: 네, 안녕하십니까. 도규욱입니다. 2025년 3분기 경영 실적을 말씀드리겠습니다. 이 페이지를 참조해 주시기 바랍니다.

Hello, this is Giwook Do. Let me begin by presenting our business results for the third quarter of 2025. Please refer to page two.

increased 7.5% year-on-year to KRW 696.0 billion. EBITDA decreased 6.6% quarter-on-quarter and increased 19.1% year-on-year to KRW 122.4 billion, and the EBITDA margin reached 17.6%. Revenue and EBITDA increased year-on-year thanks to the domestic performance of the new title Vampyr and the global launch of Seven Knights Rebirth.

Q3 revenue came in at KRW 696 billion, down 3% QOQ and up 7.5% YOY. EBITDA was KRW 122.4 billion, down 6.6% QOQ and up 19.1% YOY. EBITDA margin was 17.6%. Revenue and EBITDA increased year-on-year, driven by the domestic performance of the new title, Vampyr, and the global launch of the Seven Knights Rebirth.

37.5 billion. The operating profit margin was 13.1% as strong sales and a continued decline in commission expenses persisted, while net profit decreased quarter-on-quarter due to the reflection of valuation gains and losses on held assets.

Next, operating profit and net income. In Q3, operating profit was KRW 90.9 billion, net income was KRW 40.6 billion, and net income attributable to controlling shareholders was KRW 37.5 billion. The operating margin came in at 13.1%, supported by solid revenue and a continued decline in commission rates. Net income decreased quarter on quarter due to factors such as valuation gains and losses on held assets.

네, 다음 페이지는 게임 포트폴리오에 대한 내용입니다. 3분기 말 기준 주요 게임의 매출 비중은 세븐나이츠 리버스 12%, 뱀피르 9%, 마블 콘테스트 오브 챔피언스, 제팟 월드, 라챠 슬롯, 캐시 프렌즈 각 7%, RF 온라인 넥스트 5% 등으로 게임 포트폴리오 다변화가 지속되고 있습니다.

The following page provides an overview of our game portfolio. As of the end of Q3, revenue contribution by major titles was as follows: Seven Knights Rebirth 12%, Vampyr 9%, Marvel Contest of Champions, Jackpot World, Lacha Slots, Cash Frenzy, each accounting for 7%, and RF Online Next 5%, continue to drive diversification of the game portfolio.

지난 분기에 이어서 당사 포트폴리오에서 가장 큰 비중을 차지하고 있는 세븐나이츠 리버스는 9월 18일에 글로벌 시장에 출시되어 긍정적인 성과를 기록하였으며, 앞으로도 주기적인 업데이트를 통해서 추가적인 모멘텀을 확보해 나갈 계획입니다. 또한 8월 26일 출시한 뱀피르는 출시 직후 국내 양대 마켓에서 1위를 달성한 이후에 현재까지 견조한 흐름을 이어가고 있습니다.

Seven Knights Rebirth, which has continued to account for the largest share of our portfolio since the previous quarter, was launched globally on September 18th and has shown strong performance. We plan to secure additional momentum through regular updates going forward. In addition, Vampyr, released on August 26th, reached number one on both major domestic app markets immediately after launch and has maintained solid performance since then.

네, 다음은 지역 및 장르별 매출 비중에 관한 내용입니다. 3분기 지역별 매출은 국내 34%, 한국 32%, 유럽 11%, 동남아 8%, 일본 8%, 기타 7%. 해외 매출 비중은 전 분기 대비 2%포인트 증가한 68%를 기록하였으며, 장르별 매출 비중은 캐주얼 게임 34%, RPG 34%, MMORPG 22%, 기타 10%로 구성되어 있습니다.

Next is a breakdown of revenue by region and genre. Q3 regional revenue breakdown was as follows: North America 34%, Korea 32%, Europe 11%, Southeast Asia 8%, Japan 8%, and others 7%. The share of overseas sales rose by 2 percentage points to a Q2 68%. By genre, casual games accounted for 34% of revenue, RPG 34%, MMORPG 22%, and others 10%.

네, 다음 페이지는 주요 비용 구조에 관한 내용입니다. 2분기 영업비용은 KRW 605.1 billion으로 전 분기 대비 1.8% 감소, 전년 동기 대비 4% 증가하였습니다. 마케팅비는 KRW 145.3 billion으로 신작 출시와 기존 자액의 글로벌 지역 확장 등으로 인해 전 분기 대비 7.3% 증가, 전년 동기 대비 38.9% 증가하였습니다. 다음 인건비는 전 분기 대비 2.6% 감소, 전년 동기 대비 4.9% 감소하였습니다. 마지막으로 지급수수료율은 자체 IP 게임의 매출 증가 등으로 인해서 전 분기 대비 1.5 percentage points 감소한 32.3%를 기록하였습니다.

The next page outlines our key cost structure. Operating expenses in Q3 amounted to KRW 605.1 billion, down 1.8% QOQ and up 4% YOY. Marketing expenses rose to KRW 145.3 billion, up 7.3% QOQ and up 38.9% YOY, driven by new title launches and the global expansion of existing titles. Labor expenses was down 2.6% QOQ and down 4.9% YOY. Lastly, the commission rate decreased by 1.5 percentage points to 32.3% as sales of self-developed IP titles increased.

네, 다음으로 신작 라인업에 대해 말씀드리겠습니다. 당사는 2025년 4분기 나혼자만 레벨업, 어라이즈 오버드라이브를 출시할 계획이고, 2026년에는 상반기에 세븐 데들리 신즈: 오리진, 소울 인챈트, 몬스터 길들이기, 스타다이브 등을 포함한 신작 6종을 시작으로, 다수의 신작을 순차적으로 선보일 예정입니다. 자료에 표기된 신작 외에 추가 라인업에 대해서는 추후 공개하도록 하겠습니다. 또한 당사는 차주에 개최되는 G-Star에서는 세븐 데들리 신즈: 오리진과 몽길 스타다이브, 나혼자만 레벨업, 카르마, 이블 베인, 소울 인챈트 등 5종의 신작을 출품하고 차기 라인업에 대한 기대감을 제고할 계획입니다.

Next, I’d like to discuss our upcoming game lineup. We plan to launch Solo Leveling: Arise in the fourth quarter of 2025. In the first half of 2026, we will sequentially release multiple new titles, starting with six games, including Seven Deadly Sins: Origin, Soul Enchant, and Mongil Stardive. Additional titles not listed in the materials will be announced at a later date. In addition, at the upcoming G-Star event next week, we plan to showcase five new titles: Seven Deadly Sins: Origin, Mongil Stardive, Solo Leveling: Arise, Karma, Evil Being, and Soul Enchant, to further build anticipation for our next lineup.

solid performance trend is expected to continue through the global expansion of existing games and season updates. In 2026, we are thoroughly preparing high-quality new titles that cover a variety of platforms and genres, so we ask for your continued interest and anticipation.

In the fourth quarter, we expect solid earnings performance to continue, driven by full quarter contributions from Vampyr and Seven Knights Rebirth’s global launches, as well as global expansion and seasonal updates of our existing titles. Looking ahead to 2026, we are meticulously preparing a lineup of high-quality, well-made new titles across a variety of platforms and genres, and we kindly ask for your continued interest and support.

네, 이상으로 실적 발표를 마치겠습니다. 궁금한 사항 질문 주시면 답변드리겠습니다. 감사합니다.

That concludes our earnings presentation. We’d be happy to take any questions you may have. Thank you.

Conference Moderator: 터 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다.

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.

처음으로 질문해 주실 분은 Eugene Investment & Securities의 Jeong Woo-yoon 님입니다.

The first question will be provided by Jeong Woo-yoon from Eugene Investment & Securities. Please go ahead with your question.

안녕하세요, 유진투자증권 정우윤입니다. 저희 세 가지만 질문 드리려고 하는데, 첫째는 저희 최근에 Google Epic Games 앱 수수료 합의가 떠서 저희가 미국 매출 비중이 높은데, 이번 합의로 인해서 효과가 어느 정도 시점에 또 어느 정도 수준으로 나올지가 첫 번째 질문이고, 두 번째는 저희 실적 발표와 비슷하게 EB 발행했다라는 공시가 올라왔는데, 저희 지금 차입금 현황이랑 내년도 상황 계획, 그리고 마지막으로는 아까 신작 라인업에 대해서 말씀해 주셨는데, 그 장표를 보면 지난 분기와 다르게 좀 신작 순서가 좀 바뀐 것 같아서 이렇게 장표에 나와 있는 신작 순서가 출시되는 순서가 맞는지 확인만 부탁드리겠습니다. 감사합니다.

Good afternoon, I am Jeong Hee-yun, and I would like to ask you three questions. My first question is related to the recent announcements between Google and Epic Games of their agreement related to the app commission. In respect to the fact that Netmarble has a high sales portion for the United States, I would like to hear from the company what effect that could be for Netmarble, exactly when such effect will come into force, and if so, by how much. My next question is that along with this earnings disclosure, you’ve also disclosed the issuance of the EB, and thus could the company provide an update in respect to your borrowing position and as well as your debt service plan for next year. Moving to my third question is related to the slides in which you show the new pipeline and your future release plans.

I am just wondering because in terms of the titles and the orders they are showing at this current earnings presentation, it differs from what we saw previously. I would just like to better understand if the order that is actually shown on this presentation deck is also very much the order that you will be releasing these titles.

안녕하세요, 김병규입니다. 그 말씀 주신 질문 감사하고요. 첫 번째와 세 번째 것에 대해서 먼저 답변을 드리자면. 구글과 에픽 게임즈 간의 합의에 대해서는 저희도 이야기는 듣고 있는데, 다만 그게 아직 미국에서 최종적으로 합의된 것은 아니다 보니까 현재로서는 저희는 그 PC 결제와 관련해서. 유저의 편의성과 전체 매출을 성장시키는 관점으로 설계하고 있고, 딱히 구글과 에픽 간의 합의를 고려해서 뭔가 설계하고 있지는 않습니다. 그렇다 보니까 합의의 효과가 저희 실적에 미칠 어떤 효과의 수준과 시점에 대해서는 현재로서는 말씀을 드리기가 좀 조심스럽습니다.

This is Byunggyu Kim, and thank you very much for your questions. I will be answering your first and third questions. Going to your first question related to the agreement that was reached between Google and Epic Games, we’ve also heard about this, but as you know, this is not a final agreement that has been made in the U.S. For Netmarble, the way we are planning for the U.S. is really that we want to continue to drive PC payment and drive the overall top-line growth by enhancing the user convenience as well. When we design our plan, it is not just specifically tied to, for example, the recent set agreement between Google and Epic Games. I do have to be very cautious in commenting about exactly what effect that this would have on our earnings performance and by how much.

lineup chart does not necessarily reflect the order of new releases. We basically consider the readiness of the game and, after that, the market situation to determine the release timing. Currently, there is no correlation between the order in the lineup and the actual release order.

Moving to your third question, appreciate the question. In respect to the order that you are currently seeing in the presentation deck, I would like to clarify that this is not the order that these titles will be released. As you know, for the company, we will be basing our decision to release specific titles depending on the readiness of the game and also the market situation. To clarify, I would like to say that the current order that you’re seeing in the presentation deck has no correlation with the order that we will be releasing these titles.

네, 두 번째 EB 발행 관련된 내용을 말씀드리겠습니다. EB 발행은 공시에도 기재하였듯이 차입금 상환 목적의 발행이고, 기본적으로 재무 구조 개선의 일환으로서 실행한 내용이라고 이해하시면 될 것 같고요. 향후에 추가적인 재무 상황, 차입금 상환 계획이라든가 재무 계획에 대한 부분은 기본적으로 가지고 있는 보유 자산에 대한 유동성과 같이 맞물려 있는 것이라 이 부분은 시장 상황 등 다양한 측면을 고려해서 어떤 최적의 방법을 계속해서 지속적으로 찾아나갈 예정이고, 지금 현재 단기적으로 계획되어져 있는 구체적인 내용은 없다고 말씀드리겠습니다.

This is Jo Gyuk, and I will be answering your question related to the EB issuance. As was disclosed by the company earlier, we have stated that we are going to use the proceeds of this EB issuance to repay our debt. This is in line with the company’s aim to continue to improve its financial structure. In respect to the specific plans related to the repayment of our debt going forward, you have to please understand that this is very much tied to how we plan to monetize our health assets. When we make a decision to undertake certain actions, we have to factor in not only the market situation, but at the same time other factors as well. For the time being, we do not have any near-term specific plans to share with you on this.

다음 질문 받겠습니다. We will take the next question.

현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다.

Currently, there are no participants with questions. Please press Star 1, Star and 1 to give your question.

다음으로 질문해 주실 분은 HSBC의 김준현 님입니다. The following question will be presented by Junyoon Kim from HSBC. Please go ahead with your question.

네, 질문 기회 감사드립니다. 저 비용 관련해서 하나 질문이 있는데요. 그 저희가 이제 인건비 쪽을 보면은 계속해서 좀 관리가 잘 되고 있는 모습이고, 사실 좀 하향 안정화가 계속 꾸준히 좀. 분기 단위도 그렇고 연간으로도 그렇고 좀 많이 안정화가 되고 있는 것 같습니다. 이 이유가 조금 궁금한데, 저희가 보수적인 채용을 기조를 유지하고 있는 것도 알고 있는데, 이게 혹시 어떤 뭐 AI 기술이나 뭐 개발에 있어서 그런 거를 사용하다 보니까. 인력 그런 효율, 그런 업무 효율성이나 이런 게 올라간 그런 효과들이 좀 반영이 되고 있는 건지 그게 좀 궁금하고요. 그리고 또 지급 수수료 관련해서 이제 내년도에 보면은 뭐 7개의 대재나 이렇게 외부 IP도 조금. 이제 또 나오다 보니까 저희가 신작 출시를 뭐 연도별로 이렇게 배정을 할 때 지급 수수료율을 좀 연도별로 관리를 좀 하는. 선에서. 이렇게 출시 일정을 잡으시는 건지 그런 게 조금 궁금합니다.

This is Junyoon Kim from HSBC, and thank you for this opportunity. I have one question that’s related to your expenses, specifically your labor expenses. If we think of, if we look at the recent performance of the company on your labor expense side, I can say that it has actually continued to stabilize downwards, and thus the company has been able to well manage this stabilization process, not only on a QOQ level but also on a YOY level. I am curious to know, and of course I already know that the company has been maintaining a very conservative approach in new hires as well, but I’m just wondering whether or not such a contribution has also come from possibly using AI in your development process, which led to efficiency gains in terms of the work that’s being carried out.

I’m just wondering if there are other factors that are contributing to the overall well management of your labor expenses. One more, I would like to also ask about the commission expenses as well. As we look to your future pipeline and for next year, you are also going to be launching external type IPs such as the Seven Deadly Sins. I think I wonder for the company whether or not when you make decisions and you decide on how you allocate the new title launches per, for example, on a yearly basis, do you also factor in the commission rate that you are going to have to pay for licensed IPs as well?

먼저 인건비 관련돼서 먼저 말씀을 좀 드리겠습니다. 인건비에 대한 방향성은 기존 인력에 대한 조정 및 감소 차원이 아니고 현재 있는 인력에 대한 부분의 효율성을 극대화하는 쪽으로 전체적으로 방향성을 잡고 있다고 이해해 주시면 될 것 같고요. 그래서 늘어나는 업무에 비해서 업무 효율성을 증가함에 따라가지고 추가적인 인력이 늘어나지 않는 선에서 관리를 하고 있다고 이해해 주시면 될 것 같고, 또한 인건비 비중에 대한 부분의 관리는 결국 같은 인원에 대해서 퍼포먼스, 즉 매출 성장이 일어나기 때문에 전체 비중이 줄어들면서 전체적으로 효율성이 배가되고 있다고 이해해 주시면 될 것 같습니다.

Let me first talk about the labor cost. This is Kyuk-gyu, and just to talk to you about the basic direction for the company is that what we aim to do is to drive efficiency of our workforce, maintaining the current headcount. Our aim is not to actually do restructuring or reduce the headcount for the company, but there is going to be a continuous increase in the work carried out by our employees. The aim is to continue to drive efficiency so that we will be able to have our employees take on more work but work more efficiently, and that would not require the company to have an additional increase in the total headcount.

As we continue to add efficiency and we have more performance generated from our existing workforce, as the company continues to have revenue gains, the portion of the labor costs will become more efficient and will actually have a doubling impact in how we actually better manage the overall labor cost.

두 번째 지급 수수료에 대한 방향성에 대한 부분을 추가로 말씀드리겠습니다. 일단 지급 수수료를 구성하는 큰 요소는 잘 아시겠지만 마켓 수수료와 IP 수수료로 나눠져 있다라고 이해하시면 될 것 같고, 첫 번째 마켓 수수료에 대한 비중이 사실 더 영향도가 큰 부분이긴 한데, 마켓 수수료에 대한 비중은 저희의 어떤 그 PC 사용자 비중하고도 연계해서 그 부분에 대한 감소가 지속적으로 일어나고 있는 긍정적인 영향, 두 번째 IP 수수료에 대한 부분은 저희가 IP 수수료에 대한 비중을 가지고 라인업을 구성하기보다는 철저하게 우선적으로는 경쟁력이 있는 라인업을 어떻게 구축할 것인지에 따라서 그게 결정되어지는 부분인 거지, 그걸 감안해서 라인업을 잡고 있지는 않습니다. 결국 큰 틀에서 보면은 자체 게임 비중이 높아지게 되면 그 IP 수수료에 대한 부분은 자동으로 인하될 수 있는 방향으로 흘러가는 거기 때문에 그 비중에 대한 중장기적인 어떤 자체 게임 IP 비중을 늘려가는 쪽으로 감소시켜 줄 수 있는 가능성이 있음을 가지고 이해해 주시면 될 것 같습니다.

Moving to your second question related to the commission expenses, there are two main components related to commission expenses. One is the market commission, and the other is IP commission. I can say that the market commission actually has a greater impact between the two. In respect to how we are driving the improvement and increase in the PC users, we are also driving more positive impact on how we are managing the market commission side. Moving to the IP commission, and in terms of how we actually determine the title releases, we do not actually basically make the decision because of how we have to actually pay out the licensed IPs. The main driving force for the company is to be able to build up a very competitive title lineup.

If we look at it from a more big picture side, as we continue to have more share of original IPs, then naturally the share of licensed IPs will go down. Ultimately, this will also allow us to have a better utilization of how we pay out commission going forward because with the growth of our original IPs, that overall share of the licensed IPs will naturally go down.

다음 질문 받겠습니다.

We will take the next question.

다음으로 질문해 주실 분은 NH증권의 안재민 님입니다.

The following question will be presented by Jaemin Ahn from NH Investment & Securities. Please go ahead with your question.

네, 질문 기회 주셔서 감사합니다. 간단한 거 하나 여쭤보고 싶은데요. 저희 영업에 손실이 좀 발생한 것 같은데, 장표에 보유 자산 평가 손익이라고 적어놓으시긴 하셨는데 좀 구체적으로 설명해 주시면 감사하겠습니다.

The next question is from Jaemin Ahn, and thank you for this opportunity. I just have a very simple question. It goes to one of your slides, where you talk about how the company has incurred the non-operating loss, and you explain that this is a result of the valuation loss of the health assets. Can the company provide additional color to exactly what this means?

a PRS transaction on HYBE shares last year. Due to that PRS transaction, at the end of each quarter, the profit and loss is evaluated based on the share price fluctuation, so in the previous quarter, in Q2, there was a large valuation gain, resulting in a significant increase in operating profit. In this quarter, Q3, compared to the end of Q2, the valuation amount dropped, so you can understand it as a loss resulting from that. Also, as of the current point in Q4, the share price has improved compared to Q3, so we expect that a significant portion will be improved in Q4.

We will go back to the non-operating expenses that we have, and there are a couple of items that are under this, and this is related to, and this was also something that we showed in the previous quarter as well. As you may know, we have a PRS, a high PRS transaction put in place since the end of last year, and the PRS contract has, compels us to do the valuation gains or losses assessment on a quarterly basis. If there is a change in stock price, then we have to also recognize the valuation gains or losses every quarter. For the previous quarter in Q2, we had a significant non-operating gain as a result of the stock price movement of the HYBE shares.

In respect to the fact that as we do the Q3 valuation gains and losses, we have to now recognize a valuation loss because the share prices had fallen at the end of Q3 compared to the end of Q2. We are currently in the fourth quarter, and we’re actually now seeing the performance of HYBE shares in this quarter, which means that when we get to the fourth quarter, we will be able to recover and show an improvement to a very significant degree of a valuation gain for this.

다음 질문 받겠습니다. We will take the next question.

현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다.

Currently, there are no participants with questions. Please press star one, star and one to give your question.

다음으로 질문해 주실 분은 Daiwa Securities Capital Markets Korea의 Young-Sim Kwon 님입니다.

The following question will be presented by Young-Sim Kwon from Daiwa Securities Capital Markets Korea. Please go ahead with your question.

네, 질문 기회 감사합니다. CFO님 말씀하셨었는데 자체 게임 매출 비중 올라가고 있다고 말씀하셨고, 그게 지급 수수료를 안정화하고 하락하는 데 기여하고 있는데, 혹시 지금 3분기 기준으로 자체 게임 매출 비중이 어느 정도나 됐고, 올해 말 아니면 내년, 내후년까지 어느 정도 내부적으로 타겟하고 계신지, 그로 인해서 영업 이익률이 어느 정도 좀 개선될 수 있을 거라고 매니지먼트가 기대하는지 궁금합니다. 감사합니다.

Thank you for this opportunity, and I would like to follow up on the comment made by the CFO of how your original gains are driving the share of your original gains to the total revenue is increasing, and that is contributing to the downward stabilization of the commission expenses. Can the company share with us what is the current portion of the original gains to your total revenue as of Q3? If this is possible, can the company share your target possibly for maybe year-end or for 2026? Also, how much improvement that you can expect in terms of, for example, OP margin?

네, 안녕하세요. 먼저 자체 게임. 아마도 PC 결제 매출 비중을 여쭤보시는 것 같은데, 그게 일률적으로 말씀드리기가 좀 어려운 게 국가별로 조금 다르고 게임의 장르마다 좀 다르고 또 계절적으로 다르기 때문에 그거를 어떤 수치화하는 것은 조금 정확하지 않을 수 있다라고 생각을 합니다. 그래서 저희가 특별히 그런 맥락에서 어떤 목표를 설정하고 있지는 않고요. 처음에 질문이 나왔던 것처럼 결국 이거에 가장 큰 영향을 주는 것은 저희 내부적인 목표라기보다는 외부의 환경이 더 큰 영향을 줄 거라고 저희는 예상을 하고 있기 때문에 아까 말씀드린 Google과 Epic Games 간의 합의와 같은 그런 외부적인 변수들이 어떻게 정해지는지를 주시하고 있고, 저희가 자체적으로 어떤 목표를 설정해가지고 움직이고 있지는 않습니다.

In respect to your question, I think that asking about the portion of our original gains, I think it actually translates better to the share of the sales from PC. For us, it is not so easy to give you an average or unilateral number in respect to this because performance is varied by country, by zone, and by season as well. In talking about numbers, I do not think that would actually provide an accurate picture. That is why for us, for the company internally, we do not have a specific target number that we are moving towards. I think what is more important than, for example, the internal target per se is really the changes in the external environment. For example, the mention of the agreement between Google and Epic Games. Likewise, we continue to monitor very closely any development that will have an external impact.

I can tell you that we do not have any specific internal drivers that we are currently using in this respect.

다음 질문 받겠습니다. We will take the next question.

다음으로 질문해 주실 분은 Morgan Stanley의 Seyeon Park 님입니다.

The following question will be presented by Seyeon Park from Morgan Stanley. Please go ahead with your question.

네, 저기 질문 기회 주셔서 고맙습니다. 4분기 전망을 좀 물어보고 싶은데요. 원래 제가 알기로는 몬길 스타다이브랑 일곱 가지 대재 오리진이 4분기 출시가 되는 걸로 알고 있었는데, 지금 그 장표를 보니까 그거는 이제 내년으로 좀 연기가 된 것 같고 그러면은 지금 4분기에 세븐나이트 이버스의 글로벌 출시, 그다음에 이제 11월 25일에 있을 나 혼자만의 레벨업 업데이트 그렇게 두 개가 이제 새로 들어오는 건데, 아무래도 이제 뭐 뱀피르의 초반 약간 흥행이 조금 이제 약해지는 면도 있고 그런 면을 감안했을 때, 종합적으로 감안을 했을 때 4분기 매출이 3분기 대비해서는 좀 약간 빠지는 거를 저희가 예상을 해야 되는 게 맞는지 먼저 좀 여쭤보고 싶고요. 그냥 혹시 이번 뭐 이 4분기에 연말이기도 하니까는 혹시 비용 단에서 뭔가 조금 계절적이나 일회성으로 좀 발생할 거를 우리가 좀 예상해야 되는지 그렇게 같이 한번 묶어서 질문 드리겠습니다. 고맙습니다.

Thank you for this opportunity, and I would like to ask about the outlook for Q4. In respect to my understanding that for the game titles Mongil Stardive as well as Seven Deadly Sins: Origin, these two titles were originally scheduled to be released in the fourth quarter, but I think now I see that they have been postponed to be released for next year. If we look at what is going to be released for Q4, I can say that the global expansion of the Seven Knights Rebirth is scheduled for November 25th, and then you also have the updates for the Solo Leveling: Arise that we can expect for the fourth quarter.

Also factoring in the fact that Vampyr, which actually had a huge initial success, will over time performance will weaken, is it correct for me to think that your Q4 top line growth will be less than what we actually see for Q3? Is it also possible because as we look at Q4, it’s the end of the year, could it be possible for the company to initiate, for example, one of the expense items that could be done in the fourth quarter?

네, 향후 실적 전망에 대한 질문으로 이해를 했고요. 그 부분에 대해서 큰 트레이드 방향과 전망에 대해서 말씀을 먼저 드리자면. 일단 4분기 실적 전망에 대해서는. 4분기 라인업 큰 두 개, 세븐나이트 리버스와 몬길이 내년 1분기로 연기되었음에도 불구하고 기존 게임의 기출 시작에 대한 글로벌 확장으로 인해서 사실상 3분기 대비 상당 수준의 성장이 4분기 실적으로 이어질 걸로 예상하고 있습니다. 좀 더 구체적으로 말씀드리면 세븐나이트 리버스가 9월 말 기준으로 글로벌 확장을 했고 RF 온라인과 레이브 투가 4분기에 추가로 글로벌 확장이 되어지면서 4분기에는 3분기 대비 큰 폭의 성장이 있을 걸로 기대하고 있습니다.

This is Giwook Do, and my understanding of your question is that you wanted to actually do better related to the earnings outlook going forward. If I were to actually talk to you about on a more high-level basis, yes, it is true that for the Seven Deadly Sins: Origin and Mongil Stardive, we have postponed the launch from Q4 to next year, but nevertheless, we are going to have significant gains in terms of the revenue performance growth because of the global expansions that are scheduled for our existing titles. In short, we actually believe that we are going to actually be able to generate higher revenue in Q4 versus Q3, and we already had the global expansion of Seven Knights Rebirth in September, and we also have RF Online Next that is going to also have a big contribution in Q4 as well.

2026년에도 기 말씀드렸듯이, Seven Deadly Sins: Origin과 몬길, Star Dive가 1분기에 예상되어짐에 따라서 그 두 개의 프로젝트를 중심으로 해서 상반기 매출 및 2026년 전반에 대한 상승에 대한 부분도 내부적으로는 기대를 하고 있는 바입니다.

I would also like to add that as we look to 2026, we are going to be launching Seven Deadly Sins: Origin as well as Mongil Stardive in Q1, which is going to help us to have significant growth in the top line in the first half of 2026. Full year-wise, we believe that we’re going to be able to have very strong earnings performance next year.

so there could be an upward effect on sales. In terms of costs, since it is the fourth quarter, there are no significant one-time or abnormal costs expected. However, on the non-operating side, depending on the results of the annual impairment test and fair value assessment, there is a possibility that some may arise. Still, in terms of a large amount, there are currently no expected significant costs. I can say that at this point, there are no anticipated large costs.

Moving to the second part of your question, whether or not due to as we moved into fourth quarter, there could be any seasonality impact that would actually have the company incur a certain cost. In respect to what we actually see in fourth quarter is that for the overseas business, that was actually. The low season was for Q3. We will actually see some recovery happening as we move into the fourth quarter. That would actually be on the revenue side but not on the cost side. At present time, I do not anticipate any one-off or non-recurring cost that is notable to mention for the fourth quarter. Of course, I do want to say that. In. Recent and for us, we in the fourth quarter, we actually do a fair value assessment for the intangible assets.

This would be under the non-operating impairment valuation. This is something that we will also be doing in the fourth quarter. For the time being, we do not think that there is going to be a major cost item to recognize for the upcoming quarter.

더 이상 추가 질문 없으시면 이것으로 Netmarble 2025년 3분기 실적 발표를 마치겠습니다. 추가 질문이 있으신 분들은 당사 IR팀 연락 주시기 바랍니다. 참석해 주신 여러분께 진심으로 감사드립니다.

If there are no further questions, we will conclude the 2025 Q3 earnings presentation at this time. For any additional inquiries, please feel free to reach out to our IR team. Thank you once again for your time.

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