Wemade to Unveil Major New Titles Annually

Date: Tuesday, May 12, 2026, 16:00
Attendees: Lee Chang-hee, Head of Strategic Planning; Kim Ki-sung, Head of Business Development, Wemade
Agenda: Wemade Q1 2026 Earnings and Future Strategy

■ Summary of Wemade Q1 2026 Earnings and Status

▣ Q1 2026 Consolidated Earnings Summary

– Q1 2026 Revenue: KRW 153.3 billion (+8% YoY, -20% QoQ)

ㄴ Revenue recognition following the resolution of IP disputes eased the base effect burden from the previous quarter

– Q1 2026 Operating Profit: KRW 8.3 billion (Turned to profit YoY, -65% QoQ)

ㄴ Results of company-wide cost efficiency measures

– Q1 2026 Net Profit: KRW 19.9 billion (Turned to profit)

ㄴ Reflects increased foreign currency translation gains due to rising exchange rates

▣ Q1 2026 Cost Summary

– Q1 2026 Operating Expenses: KRW 144.8 billion (-5% YoY, -14% QoQ)

ㄴ Labor Costs: KRW 58.5 billion (+7% YoY, -3% QoQ)

ㄴ Commission Fees: KRW 36.6 billion (-32% YoY, -42% QoQ)

ㄴ Advertising Expenses: KRW 25.5 billion (+38% YoY, +40% QoQ)

▣ New Lineup

– Secured over 20 new titles, including expansions of proven global IPs and new blockbusters

ㄴ New Night Crow IP title to launch in H2 2026

ㄴ Starting from this point, we plan to release major new titles sequentially every year

– First global console blockbuster, ‘Project Tal,’ scheduled for reveal in H2 2027

ㄴ An open-world action RPG set in a Joseon fantasy world

ㄴ A AAA-grade game featuring a unique worldview that reinterprets traditional Korean folklore and overwhelming graphics

– Preparing for the Chinese launch of MIR4 and Night Crow

– Project IL,’ a console project by Studio Rasa, founded by key developers of Lies of P

ㄴ Possesses a successful track record that aligns with our strategic direction of entering the console market

ㄴ Expected to be a core project in our lineup

■ Q&A

The pipeline has recently diversified, and the share of console platforms is increasing. What changes are being made to the existing strategy, and what is the future business direction?

Kim Ki-sung (Head of Business Development) = Wemade’s game business direction is to secure clear growth engines in the global market and new genres based on our development capabilities. First, we are pursuing expansion into various platforms to broaden our business focus across the globe, including North America and Europe. The two projects currently in development, Project Tal and IL, are representative examples of this direction.

We are concentrating our company-wide capabilities on successfully introducing new titles to the global market, leveraging our experience and know-how from past large-scale project successes. Through this, we plan to provide optimized gaming experiences to users worldwide and further solidify Wemade’s presence in the global market.

Additionally, we aim to build a more robust portfolio through active genre diversification. We are preparing new titles in diverse genres through specialized subsidiary studios, and we intend to continue expanding our touchpoints with various user demographics. We are creating a sustainable growth structure by not only reinterpreting proven IPs into new genres but also focusing on discovering new IPs that will serve as future growth engines. We will do our best to leap forward as a global game company that achieves meaningful results in the world market through challenges that transcend platforms and genres.

Please provide a detailed explanation of the major new title release schedule and the overall mid-to-long-term pipeline.

Kim Ki-sung = We are building a solid pipeline by preparing over 20 new titles across various genres. The nearest momentum is the new title based on the Night Crow IP, which we aim to launch in the fourth quarter of this year. Night Crow is our core IP that has proven its unparalleled marketability, recording over KRW 750 billion in cumulative revenue.

This new title has two strategic features. First is the advancement of the blockchain economic system. We plan to implement a tokenomics system where WEMIX is practically utilized within the game, creating a virtuous cycle where the WEMIX ecosystem and the game grow together. Second is the simultaneous global one-build launch. We plan to streamline development resources and maximize the global impact of the launch.

Mid-to-long-term global projects are also being prepared according to their milestones without setbacks. First, Project Tal recently surpassed 1.92 million trailer views, confirming high expectations from the global market. As our first console challenge developed by the key figures behind the success of Night Crow, it will be a very important milestone in terms of our platform expansion.

Furthermore, Project IL by Studio Rasa, founded by key developers of Lies of P, is also steadily building up according to the planning intent in its early development stage. Regarding entry into the Chinese market, we are proceeding with preparations in stages. For MIR4, which has the fastest progress, we are continuing content work tailored to local user needs and efforts to obtain publishing licenses, and we have secured development completion to launch the service as soon as possible once acquired. In addition, we are carefully reviewing localization strategies for other major IPs, including Night Crow, while monitoring market conditions.

Finally, we are putting a lot of effort into expanding our user base through genre diversification. We have various new titles waiting for release, including ‘Wind Runner: Grow’ using our representative IP Wind Runner, as well as new titles based on the subculture genre ‘Hundred Notes’ IP and ‘Noah.’ Through this, we will construct a portfolio that is not biased toward a specific genre and secure a diverse user base.

In conclusion, Wemade will do its best to continuously enhance corporate value by preparing a balanced mix of core titles to support short-term performance and a diversified lineup to drive long-term growth.

What are the recent achievements and mid-to-long-term strategic directions of Wemade’s blockchain business?

Lee Chang-hee (Head of Strategic Planning) = We are confirming that our blockchain scale is successfully establishing platform revenue models, such as in-game exchange fees and NFT sales, beyond simple in-game revenue structures. Generally, game revenue shows a flow of peaking at launch and then gradually stabilizing downward. However, we are seeing a differentiated pattern where revenue from the blockchain sector trends upward as the service continues.

In particular, for Legend of Ymir Global, we note that platform fee revenue has increased significantly compared to the previous quarter, marking its start as a substantial financial contributor. These indicators show that Wemade has entered a stable trajectory as a platform operator that creates real revenue, beyond being a simple game developer.

This is the result of Wemade’s unique blockchain game operation know-how, accumulated since MIR4 Global in 2021, organically meshing with new revenue models. We expect the contribution of this virtuous cycle to increase further once character NFT trading for Ymir Global begins in earnest.

Based on these achievements, we plan to develop our blockchain business along two main axes. The first is the expansion of proven tokenomics models. We will actively introduce already-verified success models to our next lineup, including the new Night Crow IP title, to further refine a structure where the game’s success is directly linked to the enhancement of the WEMIX ecosystem.

The second is the expansion of global liquidity and user touchpoints. WEMIX has increased ecosystem accessibility through listings on 23 exchanges worldwide, and we will diversify listings in major global markets to create an environment where users around the world can enter the WEMIX ecosystem more easily and quickly. Based on our accumulated operational know-how, we will prove the competitiveness and sustainability of our blockchain business by establishing WEMIX as a core utility for the global game economy.

What is the status of the stablecoin project.

Lee Chang-hee = The stablecoin business is currently in the stage of waiting for legal guidelines after completing technical preparations. Since the disclosure of the stable testnet last January, we have been continuously building our internal technical infrastructure. However, as the government’s institutional direction has not yet been finalized, we are preparing to align with the regulatory environment. Recently, WEMIX Korea also completed preparations for strategic capital injection for new blockchain businesses through capital expansion.

We will strongly push forward to establish ourselves as the fastest core technology partner in the market, based on our mainnet technology and operational know-how, as well as securing financial soundness, in line with the legalization of KRW-pegged stablecoins.

What were the main factors for Q1 earnings exceeding market consensus, and what is the guidance for Q2 and the full year?

Lee Chang-hee = The background for Q1 earnings exceeding market consensus can be summarized into two factors: revenue recognition following the resolution of legal disputes and an increase in non-operating income. First, in terms of revenue, we successfully concluded the lawsuit with China’s Kingnet through a recent settlement. The distribution of past unpaid license revenue received during this process was reflected in Q1 revenue, contributing to the overall top line. We view this as a meaningful result that strategically resolved long-standing legal uncertainty while connecting it to financial results.

Next, the net profit exceeding consensus was largely due to the effects of rising exchange rates and the receipt of dividends. Foreign currency translation gains increased due to the rise in the exchange rate at the end of the quarter, and non-operating income improved significantly as dividends flowed in from investment portfolios such as Lionheart and subsidiary funds. With company-wide cost efficiency efforts entering a stable trajectory, these factors acted in combination to record a turnaround in net profit.

Next, I will speak about future guidance. Despite the absence of new titles in Q2, we plan to solidify the revenue stability of existing games through events such as the 3rd anniversary of the domestic launch of Night Crow. From the second half of the year, we expect earnings momentum to become visible as MIR IP licensing revenue in China begins in earnest and the effect of new title launches is added in the fourth quarter.

In terms of costs, we plan to maintain a continuous efficiency stance and focus on improving profitability. In particular, we expect the actual effects of labor cost improvements to be reflected in earnest from the middle of the second half. Ultimately, we believe that current cost efficiency efforts will combine with revenue momentum in the second half to solidify our profit structure and realize full-scale profit improvement this year.