Wemade, a South Korean Web3 game developer, revealed increased operating and net losses in its most recent financial statement for the fourth quarter (Q4) of 2023.
Despite a 2.8% year-over-year increase in sales, totaling 118.4 billion won in Q4 2023, Wemade saw a decline in its stock prices, closing 2.25% lower at 49,950 won on Tuesday.
The company attributed the sales growth to the domestic release of its game Night Crows and a licensing agreement for its “MIR” franchise.
Growing expenses related to sales and labor contributed to widened operating losses. Additionally, losses stemmed from affiliated companies’ stock investments and a decline in the value of convertible bond derivatives.
The company’s financial report revealed a rise in net losses to 189.5 billion won ($142.6 million) in Q4 2023, compared to 74.4 billion won in the same period in 2022.
Operating losses also increased to 70.8 billion Korean won, up from 28.7 billion won in the fourth quarter of the previous year.
Wemade plans to hold its quarterly earnings call in Asia this Wednesday, providing additional details on its 2023 performance and upcoming strategies for the current year.
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