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August 23, 2019

WeMade turns profitable, share price jumps

PUBLISHED : August 07, 2019 - 15:31

UPDATED : August 07, 2019 - 15:31

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WeMade Entertainment, a South Korean game developer best known for The Legend of Mir, said it turned profitable in the second quarter, backed by growing income from royalties.

The company’s sales rose 22 percent on-year to 33.9 billion won ($27.9 million) while operating profit soared more than 3000 percent to 2.8 billion won to snap its three straight quarters of losses. 

The Legend of Mir 2
WeMade Co



Royalty income jumped 58 percent from the previous quarter thanks to new sales of its intellectual property. Seven new licensed games based on Legend of Mir were released in China in the second quarter, the company said.

WeMade Entertainment’s share price soared more than 15 percent on the earnings announcement.

To pursue sustainable growth in the third quarter, the company plans to focus on IP protection, attaining new licenses and new games.

In May, the International Chamber of Commerce, a Singapore-based arbitration court, ordered Zhejiang Huanyou Network Technology, a unit of China’s Kingnet Network, to pay WeMade 80.7 billion won in royalties. The company is also conducting negotiations with 37 Games and Kingnet for damages due to IP infringement.

“As we continue to crack down on illegal games and new licensed games are released, our sales are expected to grow,” an official said during a conference call on Aug. 7.

The company projects fresh income of around 200 billion won if it reaches deals with Chinese games companies that are illegally using its IP. 

By Park Ga-young (gypark@heraldcorp.com)

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