1. What Happened? : WeMade’s Q1 2025 Earnings Analysis

WeMade recorded KRW 116.8 billion in revenue, KRW -28.5 billion in operating profit, and KRW -28.3 billion in net income for Q1 2025. These figures fell short of market expectations by 8%, 94%, and 386%, respectively. In particular, operating profit and net income turned to losses, recording significant deficits.

2. Why These Results? : Reasons for the Sluggish Performance

The main reasons for this poor performance are analyzed as the sluggish blockchain business and the slowdown in the game market growth. Issues related to the WEMIX platform and uncertainties in the blockchain market led to a sharp decline in related revenue. Increased competition and new game launch costs also contributed to the decline in profitability.

3. What’s Next? : Future Outlook

In the short term, the aftermath of the sluggish performance is expected to continue. However, the solid performance of major games such as ‘Legend of Ymir’ and ‘Night Crow’, and the release of new games based on the ‘Legend of Ymir’ IP are positive factors. Also, the company’s financial soundness remains at a good level, lowering the possibility of a short-term financial crisis. The recovery of the blockchain market and the success of new games will be key variables for future earnings improvement.

4. What Should Investors Do? : Investment Strategy

The current investment opinion on WeMade is ‘Sell’ or ‘Hold’. A cautious approach is required rather than aggressive investment. It is advisable to make investment decisions while closely monitoring future earnings trends, new business performance, and the possibility of recovery of the blockchain business.