SEOUL, KOREA - A global game portal Mgame announced on March 14 that it posted sales of 30.7 billion won for last year, suffering an operating loss of 13 billion won and a net loss of 58.4 billion won. Year on year, sales fell by 28.4 percent, net loss continued and operating profit turned negative.
Mgame blamed the decline in sales on the sluggish performance of its new online games, which failed to generate additional revenues.
As for the sharp decline in operating and net profits, Mgame said that the loss stemming from sales activities was not much, standing at about 1 billion won. However, the 2013 results included the massive amount of one-time write-off for the development cost of some non-performing games, developed since 2010.
To improve its performance, as well as to increase its profit ratio, the company plans to carry out drastic restructuring measures during the period from last December to the first quarter of this year, while working on initiatives to reduce the cost related with the provision of non-performing online game services.