April 26, 2024

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[THE INVESTOR] NCSoft’s revenue will continue to slide from lack of new games, said Hana Financial Investment on July 19, maintaining a “hold” recommendation. 

Its second-quarter earnings will beat market expectations, as the growth decline will be slower than expected. However, it has no game to make up for the declining daily revenue of “Lineage M.” As the likelihood of the mobile hit game’s overseas expansion is limited, its earnings outlook is inevitably grim. Since rivals are launching new games in the fourth quarter, investors should approach NCSoft more conservatively, said analyst Hwang Seung-taek. 

“Lineage M” fared better than expected in the second quarter, though, and recent traffic remains solid, noted the analyst raising the target price to 420,000 won (US$371.52) from 380,000 won.

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