Wemade shares fall after reporting widening losses

Acryptoinvest.news: South Korean game developer Web3 Wemade reported widening operating and net losses in the fourth quarter of last year, according to its latest earnings report.

The Kosdaq-listed company announced on Tuesday that its net loss widened to 189.5 billion won ($142.6 million) in the fourth quarter from 74.4 billion won in the same period in 2022, it said in a report.

The company's operating loss in the fourth quarter of 2023 was 70.8 billion Korean won, compared to 28.7 billion won in the same period last year.. In the fourth quarter of last year, Wemade's sales totaled 118.4 billion won, up 2.8% year-on-year.

Wemade shares fell 2.25% to 49,950 won on Tuesday, the company said on its website.

The gaming firm told local news agency Yonhap that the rise in sales was driven by the domestic launch of Night Crows and the licensing agreement for the MIR franchise.. However, the company faced increasing operating losses due to rising sales and labor costs. Losses on equity investments in subsidiaries and declines in the value of convertible bond derivatives also contributed to the widening net loss, the company said.

The company launched its own utility token WEMIX through its blockchain subsidiary Wemade Tree in 2020 after shifting its focus from video games to Web3 games. It has since released its own network and stablecoin.

Wemade plans to hold its quarterly earnings call on Wednesday in Asia to reveal more details about its 2023 results and upcoming plans for this year.