Korean publisher's profits fall in spite of climbing revenues thanks to costs of acquisitions and royalties
Gamevil boasted another quarter of overseas growth for the third quarter of 2013, though net profit and operating income continued to fall.
Revenues climbed 26 percent from last year to $19.6 million US (21 billion KRW), the largest portion of which came from overseas partnerships.
Sales outside of Korea totaled $11.4 million US – a record for the company – with China in particular showing remarkable growth of 46 percent from last quarter.
Despite the growth of revenues, the company actually recorded lower net profit and operating income compared both with last quarter and the preceding year.
Operating income for Q3 was $1.8 million US, down from $5.1 million for the same period last year. Profits fell from $4.5 million to $1.66 million from year-to-year.
The publisher attributed the decline in profits to the costs of talent acquisition and an increase in third-part royalties.
This includes the acquisition of one of Gamevil's major rivals – Com2uS – which the publisher is billing as a chance to capitalize on the potential of two established global platforms: Com2uS Hub and Gamevil Circle.
In addition, the Korean publisher revealed a set of partnerships with developers in Finland, Columbia, and the Ukraine.
“With over a decade of hands-on experience in mobile gaming coupled with our presence in all major markets, no other mobile gaming publishing company is as effective as GAMEVIL in providing a truly global approach,” said Gamevil USA president Kyu Lee.
“Through our focused global expansion efforts, we are planning to work with talented teams from all over the world, and invite developers to come meet with us at G-STAR.”
Profits might be falling, but the company is still bullish on core genre sales, a fact it attributes to its live services.
Games like Monster Warlord and Fishing superstars continue to perform well 16 months after release, and Gamevil says sales for these titles climbed 20 percent from last quarter thanks to “constant updates and live events”.
Mid-core titles are also doing well for the company, with average revenue per user climbing to a record high.
Gamevil has ten titles in the works for next quarter, including MMORPG Zenonia Online.