March 27, 2024
Latest Cryptocurrency News

Wemade Shares Drop on Widening Q4 Losses Report

South Korean Web3 game developer Wemade disclosed widening operating and net losses in the final quarter of the previous year, as per its most recent financial statement.

The company stated on Tuesday that its net loss surged to 189.5 billion won ($142.6 million) in Q4 from 74.4 billion won in the corresponding period of 2022.

In Q4 2023, Wemade recorded operating losses of 70.8 billion Korean won, compared to 28.7 billion won in the same period the previous year. Despite this, the company achieved sales of 118.4 billion won in the final quarter of the previous year, reflecting a 2.8% year-on-year increase.

Wemade’s stock experienced a 2.25% decline, closing at 49,950 won on Tuesday.

The company attributed its sales growth to the domestic launch of Night Crows and the licensing agreement for its “MIR” franchise. However, the widening operating losses were reportedly driven by escalating sales-related and labor costs. Additionally, losses incurred from affiliated companies’ stock investments and a decrease in the value of convertible bonds derivatives contributed to the expanded net losses.

Wemade ventured into the blockchain space by launching its native utility token, WEMIX, through its blockchain subsidiary Wemade Tree in 2020, following a strategic shift from traditional video games to Web3 gaming. The company has since introduced its own mainnet and stablecoin.

Wemade is set to conduct its quarterly earnings call on Wednesday in Asia to provide more comprehensive insights into its 2023 performance and reveal its plans for this year.

Image by vecstock on Freepik

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