April 25, 2024

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[THE INVESTOR] NCSoft missed second-quarter earnings expectations but will gain momentum, said Mirae Asset Daewoo on Aug. 8, maintaining a 600,000 won target price and a “buy” recommendation.

Its revenue from mobile games in the period reached 93.7 billion won propelled by “Lineage M,” but revenue from PC games faltered, said analyst Moon Ji-hyeon. The original game “Lineage,” suffered in particular, with its revenue plunging 64 percent on-year. 

In the latter half, revenue from “Lineage M” will be fully recognized according to the securities firm that raised the daily revenue estimate up to 7 billion won and 5 billion won in the next two quarters, respectively. 

Its earnings will rise dramatically, and the slow earnings in the second quarter is an opportunity for investors to purchase its stocks, said the analyst. Its strong revenue will last longer than forecast, added Moon.

By Hwang You-mee (glamazon@heraldcorp.com)