Wemade reports massive loss in third quarter, misses expectations

 
Wemade reported an 88.5-billion-won ($61.8 million) net loss in the third quarter, a far worse result than was forecast by analysts.
 
It is the gaming and cryptocurrency company’s second consecutive quarterly loss.
 
The market had been looking for a 3.1 billion won net loss, according to FnGuide.
 
Wemade blamed the falling value of equity investments, though it also reported a deep operating loss, indicating weakness in its core business of gaming.
 
In the third quarter, it booked a 63.1 billion won financial loss due mostly to the falling value of investments booked by the equity method, such as Kosdaq-listed Vidente, which is down more than 90 percent from its 52-week high.
 
Revenue and operating loss were also below analyst forecasts.
 
The publisher posted 108.3 billion won in revenue during the July-to-September period, up 71 percent on year. The operating loss was 28 billion won, compared with a 17.4 billion won operating profit in the year-earlier period.
 
Wemade’s stock rose more than 10 percent after reporting the results, though it is still down 71 percent year to date. The company’s Wemix cryptocurrency is down more than 90 percent from its all-time high, reached at the end of 2021.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]