April 25, 2024
Mobile & Internet
[EQUITIES] ‘NHN Entertainment disappointed but will improve in Q4’
[THE INVESTOR] NHN Entertainment has widely missed market expectations with a 2.3 billion won (US$1.99 million) operating profit in the third quarter, said Mirae Asset Securities on Nov. 10, lowering the target price to 62,000 won from 80,000 won.
“Its flagship mobile game ‘Line Disney Tsumutsumu’ had lower revenue and the promotion cost for new games and payment system Payco increased,” explained analyst Jeong Yong-je, forecasting that it will not be able to meet market consensus in 2017, either.
Game business will be slow due to the fierce competition but its music service and commerce will boost revenue, said the analyst. “Its newly launched advertising business can expand and commerce division will maintain stable growth,” added Jeong maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)
“Its flagship mobile game ‘Line Disney Tsumutsumu’ had lower revenue and the promotion cost for new games and payment system Payco increased,” explained analyst Jeong Yong-je, forecasting that it will not be able to meet market consensus in 2017, either.
Game business will be slow due to the fierce competition but its music service and commerce will boost revenue, said the analyst. “Its newly launched advertising business can expand and commerce division will maintain stable growth,” added Jeong maintaining a “buy” recommendation.
By Hwang You-mee (glamazon@heraldcorp.com)
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