PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩222 per share · Prices as of the 2026-10-02 close
MGame has extended four consecutive years of record revenue on the strength of overseas sales from its two-decade-old titles Yulgang Online and Knight Online, but earnings volatility widened in 2026 due to one-off costs and early-stage losses at new business units.
2025 consolidated revenue reached KRW 91.74 billion, a fourth straight annual record, with operating margin improving to 19.1%
Q2 2026 net income attributable to owners fell sharply to KRW 0.72 billion, driven mainly by financial asset valuation losses and normalized tax expense
The idle mobile title Gwihon Idle and the reopening of Punglimhwasan MMORPG headline the second-half new title pipeline that could shape a rebound
Shareholder returns strengthened via KRW 4 billion in treasury share buybacks/retirement and the company's first-ever quarterly dividend of KRW 110 per share
New ventures in silver healthcare, commerce, and blockchain remain in an early loss-making stage
MGame is a first-generation Korean game developer founded in 1999 and listed on KOSDAQ in 2008, operating around 50 PC and mobile titles through its game portal with roughly 21 million registered members.
Its revenue core rests on two flagship MMORPGs, Yulgang Online and Knight Online, both of which have been in service for more than two decades and retain a loyal user base across Greater China, North America, and Europe.
As of 2024, overseas sales accounted for 56% of revenue, giving the company a different revenue mix than most small and mid-cap domestic game publishers.
New title efforts include the Gwihon IP mobile MMORPG Gwihon M and the idle-style mobile game Gwihon Idle, alongside a licensing agreement with Chinese developer Qilong Network to bring a Gwihon-based mobile MMORPG to the Chinese market.
The company has six consolidated subsidiaries, including content development unit Wizgate, MGame Almaty which runs gaming and online commerce operations in Kazakhstan, and Bodum Rehabilitation Care Home in the silver healthcare business.
At its 2026 vision presentation, the company outlined commerce, silver healthcare through an integrated care platform, and AI/blockchain-based content development as new growth engines alongside its core game business.
Competitively, MGame positions itself as a small-to-mid-cap publisher that avoids direct head-to-head competition with major console and PC blockbusters from Nexon, Krafton, or NCSoft, instead focusing on long-tail overseas revenue from legacy IP and lower-capital areas such as idle games and publishing licenses.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩20B | ₩2.7B | 13.5% |
| 2025Q3 | ₩21.5B | ₩4.1B | 19.2% |
| 2025Q4 | ₩23.2B | ₩4.2B | 18.3% |
| 2026Q1 | ₩24.2B | ₩3.2B | 13.1% |
| 2026Q2 | ₩21.3B | ₩2.4B | 11.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩73.7B | ₩30.1B | ₩22.6B | 40.9% | 24.3% | 25.0% |
| 2023 | ₩81.6B | ₩21.3B | ₩21.9B | 26.1% | 19.2% | 30.1% |
| 2024 | ₩83.4B | ₩12.8B | ₩15.7B | 15.4% | 12.6% | 19.8% |
| 2025 | ₩91.7B | ₩17.6B | ₩16B | 19.1% | 11.7% | 14.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Annual revenue rose for four consecutive years, from KRW 73.65 billion in 2022 to KRW 81.63 billion in 2023, KRW 83.42 billion in 2024, and KRW 91.74 billion in 2025.
Operating margin, however, declined from 40.9% in 2022 to 26.1% in 2023 and 15.4% in 2024 before recovering somewhat to 19.1% in 2025, while net income attributable to owners fell from KRW 22.65 billion in 2022 to KRW 15.67 billion in 2024 before a modest rebound to KRW 16.03 billion in 2025.
On a quarterly basis, profitability was relatively firm in Q3 2025 (revenue KRW 21.50 billion, operating profit KRW 4.14 billion, net income KRW 4.88 billion) and Q4 2025 (revenue KRW 23.21 billion, operating profit KRW 4.24 billion, net income KRW 3.81 billion), and Q1 2026 also posted a sequential revenue increase with revenue of KRW 24.21 billion, operating profit of KRW 3.18 billion, and net income of KRW 4.53 billion.
In Q2 2026, however, despite revenue of KRW 21.26 billion and operating profit of KRW 2.44 billion, net income attributable to owners plunged to just KRW 0.72 billion.
This reflected non-operating factors including the normalization of tax expense after a deferred tax asset effect dissipated and a valuation loss of roughly KRW 0.87 billion on financial assets measured at fair value through profit or loss; the company noted these are largely non-cash accounting losses that could reverse depending on future market conditions.
Q2 consolidated operating expenses rose 8.9% year over year on higher payment fees, salaries, and advertising costs, outpacing 6.4% revenue growth, while net losses at subsidiaries pursuing new businesses—MGame Almaty (about KRW 2.0 billion), Wizgate (about KRW 0.96 billion), and Bodum Rehabilitation Care Home (about KRW 0.5 billion)—weighed on consolidated results.
As a result, cumulative H1 2026 revenue of KRW 45.5 billion (down 3.3% year over year) saw a larger decline in operating profit (down 38.8% to KRW 5.6 billion) and net income (down 28.5% to KRW 5.2 billion).
Over the trailing four quarters from Q3 2025 through Q2 2026, cumulative revenue reached KRW 90.18 billion, operating profit KRW 13.99 billion, and net income attributable to owners KRW 13.94 billion, indicating that profit contribution was relatively concentrated in the second half of the prior year.
According to the Korea Creative Content Agency, Korea's game industry revenue reached KRW 23.85 trillion in 2024, up 3.9% year over year, with exports of USD 8.50 billion (about KRW 11.60 trillion), keeping Korea's global market share at fourth place.
Within the industry, however, polarization between large and small-to-mid-cap publishers has widened, with Nexon and Krafton alone accounting for roughly 73% of combined operating profit among 14 listed Korean game companies.
The industry is shifting from a mobile-centric model toward a multi-platform structure spanning console and PC, with large publishers concentrating resources on global blockbuster titles and new technologies such as AI NPCs and user-generated content (UGC) platforms.
Idle-style RPGs, meanwhile, have become a favored strategic option for smaller publishers given their relatively low development costs and ability to generate profitability.
MGame's positioning within this landscape leans toward long-running overseas revenue from legacy IP and idle/licensing business models rather than competing directly in blockbuster development, though the structural gap in capital and marketing resources relative to major publishers remains an ongoing challenge.
In March 2026, MGame presented its '2026 Vision' outlining an expanded game lineup alongside execution roadmaps for commerce, silver healthcare, and AI-driven new businesses.
On the game side, the company plans to sustain fandom for Yulgang Online through new characters and server launches and for Knight Online through a 30-floor demon boss dungeon update, while developing a new flagship title, Project Z, which blends ancient civilization and martial-arts themes and is being built using an AI-incubated development process.
The biggest second-half catalyst is Gwihon Idle, an idle-style mobile game based on the Gwihon IP, which opened pre-registration on August 11 with a domestic launch planned for the second half; pre-registrations reportedly surpassed 800,000.
Also on the second-half slate are the reopening of the PC MMORPG Punglimhwasan, built on a legacy IP, and the launch of one additional mobile game publishing title.
On the overseas front, MGame has signed a licensing agreement with Chinese developer Qilong Network to bring a Gwihon-based mobile MMORPG to the Chinese market, while a China-developed web game based on the long-running Droiyan Online IP is being prepared separately.
In new businesses, the company aims to expand its integrated care platform, Bodum Care, to more than 200 external elder care and rehabilitation institutions through direct operation, partnership, and SaaS subscription tracks.
How visibly these new titles and new business initiatives materialize will be a key variable for second-half 2026 results.
MGame's shares tend to trade at a level below the company's net asset value, a range in which the market is not fully pricing in the size of its equity base.
On the earnings side, operating margin declined sharply from 2022 through 2024 before partially recovering in 2025, and net income contracted again in H1 2026 due to one-off items, adding quarter-to-quarter variability that complicates valuation interpretation.
Strengthened shareholder return policies—including treasury share buybacks and retirements plus the company's first-ever quarterly dividend—are a factor that could support dividend-related metrics going forward.
Until second-half new title performance and improvement in new business losses become clearer, views may differ on how much of an earnings recovery the current trading level already reflects.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Yulgang Online and Knight Online continue to generate solid revenue across Greater China, North America, and Europe despite more than two decades of service, with overseas sales reaching 56% of revenue as of 2024. In Q2 2026, the two titles' global performance underpinned 6.4% year-over-year revenue growth.
This low reliance on the domestic market provides a degree of relative stability amid the polarization underway in Korea's game industry.
The idle mobile game Gwihon Idle opened pre-registration in August and reportedly surpassed 800,000 sign-ups, while the reopening of the legacy PC MMORPG Punglimhwasan is also planned. A licensing deal with Chinese developer Qilong Network to bring a Gwihon-based mobile MMORPG to China is likewise underway.
With multiple new title and licensing events concentrated in the second half, these could serve as catalysts for an earnings rebound.
MGame carried out two rounds of treasury share purchases in May and June 2026 totaling KRW 4 billion, and retired the 430,000 shares acquired in May in July.
The company also paid its first-ever quarterly dividend of KRW 110 per share (about KRW 2 billion in total) on July 14, giving concrete form to its capital return policy. These actions illustrate the company's use of surplus cash to enhance shareholder value.
Q2 2026 net income attributable to owners fell sharply to KRW 0.72 billion, a much steeper decline than the relatively stable revenue and operating profit. The causes cited include normalized tax expense following the dissipation of a deferred tax asset effect and financial asset valuation losses.
While described as non-cash accounting losses, the widening swing in quarterly net income itself reduces predictability.
Both Yulgang Online and Knight Online have been in service for more than 20 years, and while their revenue base remains solid, it relies more on retaining existing fandom than attracting new users. Industry observers have noted that the performance base of these titles could gradually shrink over time. A slow pace of transition toward new IP-driven revenue could weaken medium-to-long-term growth momentum.
MGame Almaty, which runs gaming and online commerce operations in Kazakhstan, posted a net loss of about KRW 2.0 billion in H1, while content development subsidiary Wizgate and silver healthcare unit Bodum Rehabilitation Care Home posted net losses of about KRW 0.96 billion and KRW 0.5 billion, respectively.
While the core game business at the parent level maintained stable profitability, the cost burden from subsidiaries pursuing new businesses continues to weigh on consolidated results.
Multiple new businesses—silver healthcare, online commerce, and blockchain/AI content—are being pursued simultaneously, but they remain at an early stage with uncertain profit contribution.
Spreading resources and management attention across several ventures could affect competitiveness management in the core game business. The timing of when these new businesses might reach breakeven also remains unclear and warrants monitoring.
With more than half of revenue generated overseas, factors such as the execution of Chinese game license approvals, changes in the business environment in emerging markets like Kazakhstan, and currency fluctuations could affect results.
There is also a possibility that the licensing agreement with the Chinese developer may not translate into revenue as planned.
Polarization between large and small-to-mid-cap publishers is widening in Korea's game industry, with major players concentrating resources on global console and PC blockbusters.
While a strategy focused on niche segments such as idle games and licensing may remain viable for a company with relatively limited capital and marketing resources like MGame, competition within these segments could also intensify.
Watch for the domestic launch date of the idle mobile game Gwihon Idle and its initial revenue and chart performance. A key point is how much of the 800,000 pre-registrations converts into actual revenue.
Confirm the reopening schedule for the PC MMORPG Punglimhwasan and its effect on attracting both returning and new users.
Track the progress of the China launch of a Gwihon IP-based mobile MMORPG under the licensing agreement with Chinese developer Qilong Network.
Check the Q3 earnings disclosure for whether new title revenue has been reflected and whether the one-off items that affected Q2 net income reversed in Q3.
Check the external institution rollout performance (direct operation, partnership, SaaS) of the silver healthcare platform Bodum Care, and whether the Kazakhstan subsidiary MGame Almaty shows improvement in profit and loss.
MGame has extended a fourth consecutive year of record revenue on the strength of its overseas long-running IP with more than two decades of service, but operating margin has structurally declined from around 40% in 2022 to about 19% in 2025, and net income contracted again in H1 2026 due to one-off costs.
In particular, the drop in Q2 2026 net income attributable to owners to just KRW 0.72 billion was driven largely by non-operating factors—the dissipation of a deferred tax asset effect and financial asset valuation losses.
Multiple new title and business events are scheduled for the second half, including Gwihon Idle, the reopening of Punglimhwasan, and Chinese licensing, making whether these serve as a catalyst for an earnings rebound a key point to watch.
At the same time, new ventures in silver healthcare, commerce, and blockchain remain in an early loss-making stage that weighs on consolidated results, and the timing of any improvement in these losses also warrants attention.
The company has notably strengthened shareholder returns through treasury share buybacks/retirements and its first-ever quarterly dividend, marking a clear shift in financial policy.
Overall, this is a period where the stability of overseas cash generation coexists with uncertainty around new title and new business performance, and upcoming quarterly results and new title revenue contribution will provide the basis for further assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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