Date: Thursday, May 7, 2026, 16:00
Attendees: CEO Kim Byung-gyu, CFO Do Ki-wook
Agenda: Netmarble Q1 2026 and Annual Performance, Future Strategy

■ Summary of Netmarble Q1 2026 Performance and Status

▣ Q1 2026 Performance Summary

- Q1 2026 Revenue: ₩651.7 billion (+4.5% YoY, -18.3% QoQ)

ㄴ Revenue and EBITDA increased YoY due to the launch of new titles such as 'StoneAge Idle' and 'The Seven Deadly Sins: Origin

- Q1 2026 Operating Profit: ₩53.1 billion; Net Profit: ₩210.9 billion

ㄴ Net profit increased due to gains from the sale of held assets

- Revenue share by major game as of Q1 2026

ㄴ Jackpot World 8%, Lotsa Slots 8%, Marvel Contest of Champions 8%, Cash Frenzy 8%, etc

ㄴ Revenue share by region: North America 41%, Korea 21%, Europe 13%, Southeast Asia 12%, Japan 7%, Others 6%

ㄴ Revenue share by genre: Casual 40%, RPG 37%, MMORPG 16%, Others 7%

▣ Q1 2026 Expense Summary

- Q1 2026 Operating Expenses: ₩598.6 billion (+4.2% YoY, -12.8% QoQ)

-Marketing Expenses: ₩168.2 billion (+47.3% YoY, -5.9% QoQ)

ㄴ Marketing spend driven by new game launches

-Labor Costs: ₩167.6 billion (-2.6% YoY, -7.9% QoQ)

ㄴ Labor costs decreased QoQ due to continued workforce reduction

-Commission Fees: ₩200.9 billion (-8.3% YoY, -20.4% QoQ)

ㄴ Commission rate decreased QoQ due to increased revenue from proprietary IP games

▣ New Game Lineup

- Game of Thrones: Kingsroad Asian launch (PC: May 14, 2026; Mobile: May 21, 2026)

- Continued regional expansion of existing titles

- SOL: Enchant scheduled for release in 2026

- H2 plans include 4 previously announced titles and new releases from overseas subsidiaries, including Project Aegis

■ Q&A

The Seven Deadly Sins: Origin' and 'Monster Guild: Star Dive' were recently released. How are they performing.

CEO Kim Byung-gyu = 'The Seven Deadly Sins: Origin' launched on PC and console in mid-March, followed by a mobile launch at the end of Q1. The results are reflected in the percentage figures in our earnings presentation, so you can infer the performance from there.

Both games share the commonality of being launched simultaneously on multiple platforms across multiple global markets. This was a challenging execution as part of our ongoing multi-platform strategy. However, because playstyles and growth patterns differ by country and platform, we are currently updating the games to foster long-term user retention, focusing on the primary regions and platforms where users are most active.

Specifically, our strategy for both games was to prioritize a stable long-term Product Life Cycle (PLC) over maximizing initial revenue. We plan to continue updates and operations with this focus.

Project Aegis' was newly unveiled. Could you share details on its development scale.

CEO Kim Byung-gyu = It is an AFK-genre game that our North American subsidiary, Kabam, has been preparing for two years. Project Aegis is being developed in close collaboration with major global IP holders and Netmarble. Rather than disclosing its scale or expectations here, we are preparing a more appropriate venue for that.

Seven Knights Re:Verse' is seeing a steep decline. Are there plans for regional expansion or updates to maintain or boost revenue for existing games.

CEO Kim Byung-gyu = 'Seven Knights Re:Verse' is a game based on the original 'Seven Knights,' and we fully understand what to be cautious about and how to prepare based on that experience and performance. The first anniversary of the Korean launch is approaching, and we have been preparing since Q1 to extend the game's long-term PLC to commemorate this. I expect those plans will be revealed starting around the anniversary.

Regional expansion is also a key opportunity. Just as we expanded 'Vampire' to Taiwan in Q1, we plan to expand 'RF Online' globally in Q2. Given the game's characteristics, we expect it to achieve meaningful results in the global market.

The performance of 'Monster Guild: Star Dive' and other Q1 releases seems lower than market expectations. What does the company see as the cause, and how will this be reflected in the future.

CEO Kim Byung-gyu = Our perspective on the direction differs slightly. When results emerge, we must analyze and improve them. 'Monster Guild: Star Dive' and 'The Seven Deadly Sins: Origin' were launched simultaneously on various platforms across multiple global countries. We view this as a process of exploring user characteristics by country and platform. We will use these findings to determine our update direction and decide which platforms and countries to focus on. You can view this as a process of re-establishing our strategy based on these exploration results.

PC, mobile, and console platforms differ not just in hardware, but in play patterns and growth structures. We do not claim to have already found the perfect pattern to satisfy all users. I believe this is a common phenomenon experienced by all game companies pursuing a multi-platform strategy. We are incorporating these results into our updates. For 'The Seven Deadly Sins: Origin,' we have already implemented major updates, and we are gaining a better understanding of these patterns, which we expect will allow for updates that stabilize its long-term PLC.

With the introduction of new methods like PC payments, it is difficult to track revenue performance from the outside. What is the ratio of mobile vs. other payments, what is the share of PC payments, and how much do you intend to increase that target.

CEO Kim Byung-gyu = Despite the increase in Q1 revenue, variable commission costs actually decreased slightly. Ultimately, I want to emphasize that this is the direction we are aiming for. There are three variables that take precedence over our own will in determining the share of direct payments: platform characteristics, market commission policies, and game genre.

The technical foundation—whether the platform and the technology for direct payments can function—is crucial. Then there are the proprietary commission policies of major global markets. While these may seem fixed, they are actually quite varied and subject to slight fluctuations, which significantly impacts us.

Furthermore, a point that may not be well-known externally is that our biggest concern regarding direct or PC payments is the genre-specific characteristics represented by user reactions. Even if we ignore these characteristics to boost operating profit by introducing direct or PC payments, it does not necessarily mean users will adopt them. We prioritize these three variables over our own preferences. Nevertheless, we are fully aware that operating in a way that minimizes variable commission costs is what best serves our shareholders' interests.

There was a sale of held assets; could you explain what that was.

CFO Do Ki-wook = It was indeed the disposal of a portion of our HYBE shares.