April 19, 2024

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[THE INVESTOR] Netmarble Games’ earnings are very likely to improve in the first half, said Kiwoom Securities on Jan. 9, upgrading the recommendation to a “buy” from an “outperform.”

Its operating profit from the fourth quarter last year will fall 4.1 percent from the previous quarter to 107.2 billion won (US$100.50 million), missing market expectations, estimated analyst Kim Hak-jun.

Revenue from its major source of revenue “Lineage 2: Revolution” is dwindling and the result of launching in North America and Europe in November was significantly weaker than expected, while introducing it ts and rolling out “Terra M” significantly raised marketing costs, explained the analyst. 

In the first half, though, it is planning to release a number of new MMORPGs, and its earnings will depend on the success of “Blade and Soul: Revolution,” according to Kim.

Although it is too early to anticipate a launch in China, the possibility of gaining approval has improved and it will serve as a big momentum, he added maintaining a 210,000 won target price.

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