Jang Hyun-guk "Do not evaluate with profit or loss"... 'Deficit' Wemade, the basis of confidence
Wemade (58,600 won ▲1,300 +2.27%), which launched a blockchain-based 'money-making game', had dark clouds in its 2Q earnings. As an 'earning shock' that fell far short of the consensus (market forecast), even the 2nd quarter performance report fell short of expectations. Nevertheless, WeMade expressed its will to overcome market concerns with new business expansion cards including its own mainnet (operating system on block chain) 'WEMIX 3.0'.
On the 27th, WeMade CEO Jang Hyun-guk emphasized the plan to target the global blockchain game market, saying, "Please pay attention to how far WeMade is implementing the blueprint announced."
Wemade 2Q performance 'earning shock'... CEO Jang Hyun-guk, "Investment performance takes time"
On the same day, WeMade announced that it recorded a consolidated operating loss of 33.258 billion won in the second quarter of this year, turning to the red. Net profit also turned to a loss of 316.42 billion won. However, sales were 108.9 billion 63 million won, up 58.2% from the same period last year.
Wemade's performance was significantly lower than the market forecast. According to F&Guide (8,220 won ▲290 +3.66%), a financial information company, securities firms predicted WeMade's sales, operating profit, and net profit in the second quarter to be 132.2 billion won, 3.6 billion won, and 21.4 billion won, respectively. Regarding this, Wemade said, "The success of the new Mir M, released on the 23rd of last month, was hardly reflected in the 2Q earnings. The earnings will improve from the 3rd quarter." We are keeping it and making a save,” he said.
This isn't the first time Wemade's gloomy report card has been reported. In the first quarter of this year, operating profit was 6.494 billion won, down 76.4% from the previous year, and net profit also fell 98.3% to 399 million won during the same period. However, sales rose 72.3 percent to 131.035 billion won.
In response to the market's concerns, CEO Jang himself came forward. He expressed his confidence that WeMade could increase future value by pushing ahead with the blockchain business that Wemade saw as the future food. CEO Jang said in a conference call for the second quarter earnings release on the morning of the same day, "It takes time for investment to show results."
CEO Jang also said, "It is impossible to evaluate our company with a profit and loss statement in a situation where virtual currency accounting is not established. Please keep an eye on it.” In addition, he introduced the idea to devote all energy to the blockchain business by hiring additional 80 to 100 related personnel per quarter.
Released blockchain version of 'Mir M' in the second half of the year... Global market penetration
In the second half of this year, WeMade plans to target the global market by applying blockchain services to 'Mir M'. 'Mir M', which was officially released in Korea on the 23rd of last month, succeeded in box office success, ranking 3rd in the most popular rankings in both domestic application (app) markets and 3rd in sales on the Google Play Store right after its release.
CEO Jang said, "The traffic of Mir M is much more stable than that of Mir 4, and the average daily sales of Mir M, which is close to a month after its release, are just under 500 million won." Tokenomics), if Mir 4 Global made one of the game goods into a game token, Mir M Global will bring many game goods into the token economy.”
WeMade plans to focus more on the economic connection of games and the expansion to the real economy through the 'inter-game economy', and △ building a blockchain ecosystem centered on Wemix 3.0 in earnest.
CEO Jang said, “We will lead the market with a more aggressive move because Wemix has already proven its usefulness through games. We will make it happen,” he said.
