April 19, 2024

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[THE INVESTOR] Netmarble will not be able to satisfy earnings estimates in the first quarter, said Samsung Securities on April 19, lowering the target price to 140,000 won (US$131.21) from 160,000 won and maintaining a “hold” recommendation. 

Dented by declining revenue from “Lineage 2: Revolution” and weak performance of the latest game, its operating profit in the period will decline 12.1 percent on-year to 81.5 billion won, 20.9 percent lower than market consensus, said analyst Oh Dong-hwan.

As revenue from its flagship game “Lineage 2: Revolution” is waning, and its new release “Fishing Strike” is barely in the top 50, whether its earnings will rebound in the second quarter depends on the success of “BTS World” and “Harry Potter,” said the analyst. 

It is still unpredictable when it will be able to roll out “Lineage 2: Revolution” in China due to the suspended approval despite the improvement in diplomatic relations, according to Oh.

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