Korean developer and publisher Com2Us has achieved a significant turnaround in its financial performance. The company reported a net profit of ₩4.4 billion ($3.3 million) in 2023, marking a stark contrast to the previous year’s deficit of -₩9.3 billion (-$7 million). This impressive recovery was despite ongoing year-on-year declines in operating profit.
While the net profit result is undoubtedly a cause for celebration, Com2Us faces ongoing challenges. The company experienced a 19.5% decline in consolidated revenue in the fourth quarter, attributed to “negative seasonality” according to its latest financial report. Furthermore, consolidated profits continued to decrease year-on-year in Q4.
Operational Analysis
In Q4, Com2Us incurred operating losses of ₩17.6 billion ($13.2 million) due to “one-time losses in media business”. However, the company’s gaming arm performed well, generating ₩126.4 billion ($98.9 million) in the quarter, which accounted for 77% of its total earnings. This indicates a relatively minor 3% year-on-year decline in Q4 gaming sales, in stark contrast to the substantial 48.5% decrease from the wider media category.
For the entire year of 2023, Com2Us achieved a net profit, attributed in part to a 13.5% year-on-year increase in game sales. The company’s games brought in ₩562 billion ($421.6 million) in 2023, a significant rise from the ₩495 billion ($371 million) earned in the previous fiscal year.
The casual game genre was a standout performer in 2023, with a substantial 95.3% year-on-year increase in earnings. In contrast, RPGs saw a 16.6% decline in that same year, with earnings peaking in Q2 at ₩116.4 billion ($87 million) and declining to ₩73.6 billion ($55 million) in Q4.
Market Reach
Com2Us saw a slight 0.2% year-on-year increase in its proportion of game sales within Korea. However, the overseas market remained the primary revenue driver. Specifically, 68.5% of game revenues came from abroad, with Com2Us making ₩86.6 billion ($65 million) overseas. Despite a 3.4% decline, this was largely attributed to falling RPG sales.
Despite this decline, Com2Us continues to see notable success with its RPG Summoners War: Sky Arena, achieving over 200 million downloads and ₩3.2 trillion ($2.4 billion) in earnings. The game has topped RPG sales in 162 regions.
Future Plans
Looking ahead to 2024, Com2Us has soft-launched Frostpunk: Beyond the Ice and aims to launch it globally in the second half of the year, with the exception of China. This decision is influenced by the complex and evolving approval process in the Chinese market.
