Good morning, this is Gi-wook Do. Please refer to page two for general Q3 results. With new titles introduction in Q3, including Seven Knights Idle Adventure and Tower of God, NEW WORLD , revenue in Q3 increased 4.5% QOQ and decreased 9.2% YOY at KRW 630.6 billion. With new titles, EBITDA increased 126.9% QOQ, and 17.8% YOY at KRW 24.5 billion. EBITDA margin recorded 3.9%.
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Next page is on operating and net profits. Q3 saw an operating loss of KRW 21.9 billion, net loss of KRW 28.4 billion, and controlling shareholder loss of KRW 19.0 billion.
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Next page is on geographical breakdown. Overseas revenue reported KRW 520.6 billion, and domestic revenue recorded KRW 110.0 billion in Q3. Overseas contribution to revenue was at 83% and domestic 17%. Domestic contribution rose three percentage points QOQ with the introduction of new titles, such as Seven Knights Idle Adventure and Tower of God, NEW WORLD.
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Next page is on revenue contribution by different genres. As of end of Q3, the biggest genres were casual, RPG, and MMORPG.
In particular, Q3 revenue contribution from RPG grew 5 percentage points QOQ at 35%, with global launch of incremental RPG, Seven Knights, Idle Adventure, and collection RPG, Tower of God, NEW WORLD .
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Next page is on game portfolio. Major 10 titles, including MARVEL Contest of Champions, account for 59% of our overall revenues. With the launch and good performance of Seven Knights Idle Adventure and Tower of God, NEW WORLD , these two titles made the top 10 list with 5% contribution each.
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Next is on major cost structure. Operating costs at KRW 652.5 billion, increased 1.9% QOQ, and decreased 10.9% YOY in Q3. Commissions paid at KRW 239.1 billion, decreased 0.5% QOQ, and 14.1% YOY, thanks to the revenue increase of in-house IP games. Labor recorded KRW 180.6 billion. With smaller headcount, it decreased 6.5% QOQ and 11.0% YOY. Lastly, marketing costs at KRW 145.8 billion, increased 28.9% QOQ and 0.6% YOY with new title launches in Q3.
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Now on our lineup, the company will introduce six new titles, including the newly added Raven 2 and Arthdal Chronicles, Three Factions and Solo Leveling, Arise. Ni no Kuni, Cross Worlds is to be introduced to the Chinese market.
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For your information, the company is to introduce three new games at G-STAR that will take place next week. First is The Seven Deadly Sins, Origin, which is an open- world RPG bound for mobile, PC, and console platforms. Second, high quality MMORPG RF Online Next that realistically illustrates SF universe while carrying RF Online IP. L astly, our own IP brand, cross-based collection RPG, Venice Re, Born. Following last year, the company will introduce a differentiated new titles across diverse genres at G-STAR.
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The company is pooling all its resources to add to the sophistication of planned releases, and provide differentiated fun. We are thoroughly preparing and checking to make sure our efforts translate to a successful launch, so I hope that you keep your interest and support for the company live.
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This concludes my presentation. Now we will be entertaining your questions. [Foreign language] Now Q&A session will begin.
Please press star one, star and one if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. [Foreign language] The first question will be presented by Donghyun Kim from Kyobo Securities. Please go ahead with your question.
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Yes, I have two questions. Well, the first, well, you have introduced your new titles in Q3, but the deficit level has been decreased as to what the market has expected. Is it because of the heavier spending associated with marketing, or is it because of other reasons? C ould you give us your guidance for Q4 marketing costs and also labor costs? T he second question, do you think you would be able to turn into a black ink number in Q4?
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Yes, this is CEO Do answering your first question, which is on the results for Q3. Yes, as was mentioned in your question, we did have new title launches in Q3, but the cost associated is not spread across different quarters. T here was a very focused spending on marketing in Q3. That is why the improvement was rather limited. G oing into the fourth quarter, there won't be much of an added marketing cost, and the results from the new titles will be reflected in full for the fourth quarter, so we do expect to see added improvement.
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Next question, please. [Foreign language] The following question will be presented by Seung-hoon Lee from IBK Investment & Securities. Please go ahead with your question.
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Yes, I have two questions. First is on the delay situation for your expected titles, including Arthdal and Solo Leveling, Arise. Why was there a delay, and when do you think will be the official launch of the expected titles? This is the first question. My second question is related to your titles to be introduced at G-STAR. Could you give us where the development currently stands?
출시를 못하게 된 점 송구하게 생각합니다. 그 지금 진행 현황에 대한 그 답변을 드리겠습니다. 나 혼자만, 나 혼자만의 레벨업은 최근에 저희들이 사내 테스트를 마쳤습니다. 내부 테스트 결과 게임의 재미 부분은 좀 검증이 완료됐다고 생각합니다. 지금부터 출시를 준비해서 OBT 해서 최종 점검하고 나서 출시하면 약 일 분기 내에 출시가 가능할 거로 예상하고 있습니다. 그 아스달 연대기 또한 내부적으로 개발은 완료된 상태고, 테스트도 완료되었습니다. 그래서 폴리싱을 해서 일 분기 내에는 꼭 출시할 수 있도록 하겠습니다.
Yes, this is CEO Gi-wook, addressing your first question. Yes. First of all, our apologies for the delayed introduction of the expected two titles. Now let me give you a progress update. As for Solo Leveling, Arise, we have completed the test within the company, and we have confirmed the fun part of this title. After the OBT, we will do our final checkup, and we do believe that we will be able to release this title in the market in the first quarter. As for Arthdal Chronicles, we have completed the development and test for this title. We will be polishing it further to be introduced, hopefully in the first quarter next year too.
네, 그리고 이번에 지스타를 통해서 저희들이 새롭게 공개하는 3종 게임은 2024년 하반기에 출시를 목표로 개발을 하고 있습니다. 다만 그중에서 일곱 개의 대죄: 오리진 같은 경우에는 오픈월드 게임입니다. 그래서 방대한 콘텐츠를 준비를 해야 되는 부분이 있고, 그리고 모바일, PC, 콘솔 플랫폼을 동시에 대응해서 출시할 계획입니다. 그래서 상황에 따라 일부 변동 사항이 생길 수도 있습니다.
N ow, more color on the three titles that we are going to introduce at G-STAR. Well, we hope the titles will be released in the second half of year 2024. That's our goal and target. A s for Seven Deadly Sins, Origin, it's an open world game requiring a vast content, and we're preparing for simultaneous release on the mobile, PC, an d console platform.
다음 질문 받겠습니다.
Next question, please.