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Smilegate Group Announces 2016 Annual Earnings

Posted On
2017.03.15

Smilegate Group Announces 2016 Annual Earnings

Consolidated financial statement for 2016 showed continuous growth since 2015 with sales of $572 million and operating profit of $324 million

Achieved operating profit rate of over 50% for 8 consecutive years and second highest operating profit in the industry by developing new sources of revenue through actualized performance of IP diversification, increase in venture capital investments, etc.

To expand new PC online and mobile game lineup in 2017

 

[2017-0302] Smilegate Group (CEO Hyuk-bin Kwon, hereafter referred to as Smilegate) continued to show solid growth in 2016.

Smilegate announced on the 2nd (Thursday) through its 2016 annual performance report that its consolidated financial statement showed sales of $572 million and operating profit of $324 million, a 10.24% and 13.44% increase compared to the previous year, respectively.

Despite aggravating political·economic conditions both locally and abroad, Smilegate was able to achieve remarkable results through the continuous advancement of CROSSFIRE, as well as results reaped from the diversification strategy of its CROSSFIRE IP. The explosive popularity of the mobile version of CROSSFIRE in China developed by Tencent by utilizing CROSSFIRE IP also contributed immensely to Smilegate's success last year.

Consistent popularity of CROSSFIRE, celebrating its 10th year anniversary of service this year, in global markets such as China, Vietnam, the Philippines, and Brazil raised solid sales, supporting performance, etc., once again confirming the success of CROSSFIRE.

Smilegate Investment was also awarded second place in the “2016 Superior Venture Capital Maximum Investments Division” by the Small and Medium Business Administration, showing how its active investments in discovering·cultivating promising small and medium ventures, startups, etc. contributed to the Group's sales performance.

Smilegate was recognized as one of the five highest-grossing game companies in Korea for the second year in a row based on its total revenue, placing second highest after Nexon in operating profit. Smilegate's operating profit rate for 2016 was 56.63%, achieving an operating profit rate of over 50% for 8 consecutive years since 2009.

Smilegate plans to continue active diversification of its CROSSFIRE IP in 2017, while simultaneously focusing on securing growth momentum through an expanded lineup of new PC online and mobile games.

Following the movie development contract signed with major Hollywood film production company Original Film, a first for Korean games, renown screenwriter Chuck Hogan was signed onto the project last October. With scenario production in full swing, the commercial film adaptation of CROSSFIRE is expected to continue its drive.

New major PC online games are expected to be revealed throughout the year, beginning with “Soulworker” launched in January, as well as the 2nd “Lost Ark” CBT, “CROSSFIRE 2,” etc. Continuous growth momentum will be sustained with over 10 mobile games of various genres, including sandbox game “Super Tank Rumble” launched in February, as well as music performance game “THE MUSICIAN,” etc.

Smilegate Group CEO Hyuk-bin Kwon said, “The success of the mobile version of CROSSFIRE last year alerted to the actualization of results created by the diversification of CROSSFIRE IP,” and that “the business of diversifying CROSSFIRE IP will continue in 2017, as well as the development of major games, including Lost Ark and CROSSFIRE 2, an enhanced mobile game lineup, and plans to focus on discovering and securing superior IP.”