Netmarble saw both revenue and operating profit rise in the third quarter this year on the success of the MMORPG (massively multiplayer online role-playing game) "Vampire." However, external variables, including a reversal in valuation gains and losses related to HYBE stock and delays in some new releases, still weighed on results.
Do Gi-uk, Netmarble's chief financial officer (CFO), said on Nov. 6 during the 2025 third-quarter earnings conference call, "Third-quarter revenue rose 7.5% on-year to 696 billion won, and operating profit increased 38.8% to 90.9 billion won," adding, "The domestic performance of the new title 'Vampire' and the global launch effect of 'Seven Knights Rebirth' were reflected." EBITDA was 122.4 billion won, up 19.1%, and the operating margin was 13.1%.
Revenue share by key title was "Seven Knights Rebirth" 12%, "Vampire" 9%, "Marvel Contest of Champions" 7%, and "RF Online" 5%. Overseas revenue accounted for 68%, up 2 percentage points from the previous quarter. CFO Do said, "As the share of first-party intellectual property (IP) games has increased, the payout fee rate fell to 32.3%," adding, "Balanced performance continues across casual and RPG genres."
In non-operating items, gains and losses from PRS (puttable redeemable shares) transactions related to HYBE stock had a negative impact. The quarter-end valuation of Netmarble's equity in HYBE declined compared with the second quarter, resulting in a valuation loss. CFO Do said, "Valuation gains were large in the second quarter, but in the third quarter HYBE's share price fell and gains and losses reversed," adding, "As of now, we expect a significant improvement in the fourth quarter."
Netmarble expects growth to continue in the fourth quarter through the global expansion of existing hits. CFO Do said, "In the fourth quarter, overseas revenue from 'Vampire' and 'Seven Knights Rebirth' will be fully reflected, and with additional global expansion of 'RF Online' and 'Raven 2,' growth is expected to continue compared with the third quarter." However, Do added, "Depending on the results of the annual impairment test, there is a possibility of a one-off non-operating expense."
With North America accounting for 34% of revenue, Netmarble is also closely watching changes in global platform policies. Recently in the United States, Google and Epic Games, Inc. wrapped up four years of legal battles over app market fees and reached a settlement. The two companies adjusted to allow external payment systems, creating room for global game companies to lower app store fees going forward. Because major revenue in North America comes from titles such as "Marvel Contest of Champions" and "Seven Knights Rebirth," the settlement could have a direct or indirect impact on profitability.
Chief Executive Kim Byung-gyu of Netmarble said on the conference call, "The settlement has not yet been finalized in the United States," adding, "It is difficult to predict the timing and magnitude of the impact on results." Kim added, "We will increase the share of PC payments to improve both user convenience and revenue efficiency."
The schedule for new titles was partially adjusted. Netmarble plans to launch "Solo Leveling: ARISE Overdrive" in the fourth quarter this year, but "The Seven Deadly Sins: Origin" and "MONGIL StarDive" were postponed to the first quarter next year. CFO Do said, "The announced lineup order is unrelated to the actual launch timing, and we are making flexible adjustments based on completeness and market conditions."
Regarding the issuance of EB (exchangeable bonds), the company emphasized that the purpose is to secure financial stability. CFO Do said, "The EB issuance is a measure to repay borrowing fund and was pursued as part of improving the financial structure." On labor cost efficiency, Do said, "This is not about reducing headcount through AI technology but managing to enhance the efficiency of existing staff," adding, "We aim for a structure that delivers higher performance with the same headcount."
Meanwhile, Netmarble will showcase five new titles at G-Star 2025, including "The Seven Deadly Sins: Origin," "MONGIL StarDive," "Solo Leveling: KARMA," "Ebulvain," and "SOL: Enchant." CFO Do said, "Next year, we are also preparing high-quality new titles across a variety of platforms and genres," adding, "We will strengthen our growth base through continued global expansion."