SEOUL, KOREA - Global game portal Mgame took a positive turnaround in the first quarter of this year primarily thanks to the massive workforce downsizing and business restructuring.The company expects a huge amount of new earnings to be created in the second quarter on the back of its newly-launched mobile game Princess Maker for Kakao.

 

Mgame announced on April 17 that it posted sales of 9.3 billion won in the first quarter, with an operating profit of 2.09 billion won and a net profit of 1.82 billion won.Sales rose 61.8 percent compared to a quarter ago and 5.8 percent compared to a year ago. Mgame also achieved operating and net profits in a turnaround from losses a quarter ago and a year ago.

The company attributed the strong results to the reduction in cost through strong restructuring measures on its workforces starting from the end of last year.It also shifted the method of servicing the online games with low profit rates from direct service toward commission-based service.

In particular, overseas sales marked an overall growth, while domestic sales of major online games rose thanks to the updates it carried out during the winter season.