FY2015 Q1 Earnings Release

Transcription

1 FY2015 Q1 Earnings Release WEMADE ENTERTAINMENT INVESTOR RELATIONS May 8, 2015

2 Disclaimer This presentation has been prepared by WeMade Entertainment Ltd. ( The Company ). This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented. The Company, its affiliates, advisers or representatives accept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of or be relied upon on connection with any contract or commitment. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Consolidated Companies WeMade Entertainment, Joymax (IO Entertainment, Fever Studio, Linyworks, D4Games), WeMade Creative, WeMade Entertainment Online, WeMade Entertainment USA, WeMade Entertainment Shanghai

3 INDEX FY2015 Q1 Earnings Release I. FY2015 Q1 Results 1. Operational Highlights 2. Income Statement - WeMade 3. Income Statement - Joymax 4. Revenue by Game 5. Revenue by Region 6. Operating Expenses II. Appendix 1. Revenue from Legend of Mir2 (China) 2. Financial Statement - WeMade 3. Financial Statement - Joymax 3

4 Ⅰ. FY2015 Q1 Results 1. Operational Highlights 2. Income Statement WeMade 3. Income Statement Joymax 4. Revenue by Game 5. Revenue by Region 6. Operating Expenses 4

5 Ⅰ. FY2015 Q1 Results 1. Operating Highlights Mobile Game Domestic Market - Domestic Q1 mobile revenues decreased as a revenues from existing games decreased despite a major Every town update. - Expecting domestic revenue growth in the 2 nd half of the year with the launch of new mobile games. Overseas Market - Q1 overseas mobile revenues increased thanks to contributions from Ark Sphere launch in Japan. - Overseas revenues are expected to increase in 2 nd half with the launch of Wind Soul in Japan with LINE and as well as global versions of hit games such as Every town. Online Game Although MMORPG Icarus maintained stable user numbers in Q1, revenues decreased Q/Q. Expecting Q2 overseas revenue growth from Icarus as it was launched in Japan on April 28. Lost Saga Pre-CBT successfully completed in China (April 3~May 3). Commercial service is planned for 2 nd half. MIR2 China revenues decreased Q/Q as more of the focus was placed on user satisfaction rather than on revenue driving events. 5

6 Ⅰ. FY2015 Q1 Results 2. Income Statement - WeMade Total revenues of 35.6 billion won. (-8% QoQ) Operating loss of 5.5 billion; Q/Q improvement due to lower labor costs and one-time charges in 4 th quarter Net loss of 2.9 billion won. [Million KRW] Q1 15 Q4 14 QoQ Q1 14 YoY Revenue 35,637 38,604-8% 39,779-10% Mobile 14,351 16,332-12% 20,482-30% Online 21,286 22,271-4% 19,297 10% Op Expense 41,179 49,161-16% 50,279-18% Labor 23,152 24,862-7% 28,820-20% Service Fee 10,221 12,384-17% 12,618-19% Marketing % 838-6% D&A 2,748 2,915-6% 2,860-4% Taxes % % Others 3,434 7,444-54% 4,149-17% Op Income -5,542-10, ,501 - Non-Op , ,998 - Financial ,712-1,090-43% Equity Method 195-8, Income before taxes -4, ,011 Turn to deficit -11,606 - Income tax -1,774 77, Net Income -2, ,873 Turn to deficit -11,928 - Attributable to WeMade -2, ,238 Turn to deficit -11,518 - Minority Interest ,

7 Ⅰ. FY2015 Q1 Results 3. Income Statement - Joymax Total revenues of 7 billion won. 4% decline due to reduction in mobile revenues. Operating losses of 1.2 billion won. [Million KRW] 구 분 Q1 15 Q4 14 QoQ Q1 14 YoY Revenue 6,965 7,262-4% 8,848-21% Mobile 3,374 4,256-21% 4,804-30% Online 3,591 3,005 19% 4,044-11% Op Expense 8,208 8,584-4% 9,743-16% Labor 5,109 5,423-6% 6,557-22% Service Fee % % Marketing % % D&A % 918 2% Taxes % 72 1% Others 1,089 1,297-16% 1,353-20% Op Income -1,243-1, Non-Op Financial % % Equity Method Income before taxes -1,008-1, Income tax Net Income , Attributable to Joymax , Minority Interest Turn to deficit 7

8 Ⅰ. FY2015 Q1 Results 4. Revenue by Game Mobile game revenues decreased 12% QoQ due to decreases revenues from existing games such as Café Storia. Despite the increase in revenues from Lost Saga and Silkroad, total online game revenues decreased 4% as Icarus and MIR2 revenues declined in Q/Q. [Million KRW] Q1 15 Q4 14 QoQ Q1 14 YoY Mobile 14,351 16,332-12% 20,482-30% Core 4,958 5,158-4% 5,976-17% 38,604 35,637 Casual 1 9,393 11,175-16% 14,506-35% Online 21,286 22,271-4% 19,297 10% MIR2 7,759 8,511-9% 10,008-22% Mobile 14,351 (40%) MIR3 1,832 1,691 8% 1,851-1% Icarus 5,291 6,321-16% 0 Lost Saga 3,703 3,078 20% 3,793-2% Silkroad 1,264 1,102 15% 1,636-23% Online 21,286 (60%) Digimon Masters 1,111 1,316-16% 1,379-19% Others % % Total 35,637 38,604-8% 39,779-10% * 1 Mobile-Casual includes SNG 8

9 Ⅰ. FY2015 Q1 Results 5. Revenue by Region Overseas revenues increased 2% Q/Q owing to the Ark Sphere launch in Japan. Domestic revenues decreased 14% Q/Q as a result of decline in both mobile and online games. There were no new game launches to offset the decline in revenues from existing games. [Million KRW] 38,604 Q1 15 Q4 14 QoQ Q1 14 YoY 35,637 Domestic 19,605 22,814-14% 21,184-7% Mobile 10,683 12,968-18% 17,165-38% Online 8,923 9,845-9% 4, % Mobile Domestic Online Domestic Mobile Domestic Online Domestic Domestic 19,605 (55%) Overseas 16,032 15,790 2% 18,595-14% Mobile 3,668 3,364 9% 3,317 11% Online 12,364 12,426-1% 15,278-19% Mobile Overseas Online Overseas Mobile Overseas Online Overseas Overseas 16,032 (45%) Total 35,637 38,604-8% 39,779-10% Q4'14 Q1'15 9

10 Ⅰ. FY2015 Q1 Results 6. Operating Expense Operating expense reduced 16% Q/Q as a result of 7% reduction in labor costs. Total headcount decreased by 90 Q/Q (total headcount; 1,500) Operating expenses declined 7% Q/Q after removing one-time charges (approximately 5bil. won) from previous quarter. [Million KRW] Q1 15 Q4 14 QoQ Q1 14 YoY Labor 23,152 24,862-7% 28,820-20% Service Fee 1 10,221 12,352-17% 12,618-19% Marketing % 838-6% D&A 2,748 2,915-6% 2,860-4% Taxes % % Others 3,434 7,476-54% 4,149-17% Total 41,179 49,161-16% 50,279-18% * 1 Service fee includes commission to Google / Apple & Kakao 10

11 Ⅱ. Appendix 1. Revenue from Legend of Mir2 (China) 2. Financial Statement WeMade 3. Financial Statement - Joymax 11

12 Ⅱ. Appendix 1. Revenue from Legend of Mir2 (China) Revenue from MIR2 in China decreased 7.5% Q/Q on Yuan basis Focus has been on user satisfaction and retention, rather than on driving revenues. Mir2 China Revenue Trend [Million RMB] Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1 '15 Mir2 China Revenue by Currency [Million RMB, Million USD, Million KRW] Q1 '15 Q4 '14 QoQ Q1 14 YoY RMB % % USD % % KRW 6, , % 8, % 12

13 Ⅱ. Appendix 2. Financial Statement WeMade (Consolidated) Statements of Financial Position Income Statement [Billion won] 유동자산 비유동자산 자산총계 부채총계 자본총계 부채와자본총계 [Billion won] Q Revenues Op Expense Op Profit Non Op Inc/Exp Income before Taxes Taxes Discontinued Ops Net Income Attributable to WeMade Minority Interest

14 Ⅱ. Appendix 3. Financial Statement Joymax (Consolidated) Statements of Financial Position Income Statement [Billion won] [Billion won] Q 유동자산 비유동자산 자산총계 부채총계 자본총계 부채와자본총계 매출액 영업비용 영업이익 영업외손익 법인세차감전계속사업이익 법인세비용 당기순이익 지배회사지분순이익 소수주주지분순이익

15 Thank You 15