[THE INVESTOR] Netmarble Games’ first-quarter earnings will be slow due to the lack of new releases, said Eugene Investment and Securities on April 4, maintaining a “hold” recommendation and lowering the target price to 155,000 won (US$146.77) from 175,000 won.
Its revenue in the period will decline 26 percent on-year to 508.6 billion won and operating profit by 59.9 percent to 80.1 billion won, said analyst Jeong Ho-yun.
Daily revenue from “Lineage 2: Revolution” has fallen below 2 billion won in the first quarter, from 2.6 billion won in the previous quarter, and that of its major new release “Terra M” has declined to below 200 million won, according to the analyst.
In the second quarter, it will roll out “Harry Potter: Hogwart Mystery,” “Teria Saga” and “BTS World” and is likely to earn approval for “Lineage 2: Revolution” in China after April, but these have mostly been reflected in the earnings prospects, noted Jeong.
Although odds are high that “Lineage 2: Revolution” will reap over 5 billion won a day in China, it has already been reflected in market expectations and its stock price is not likely to rise further, he added.
By Hwang You-mee (email@example.com)