[THE INVESTOR] Netmarble satisfied third-quarter earnings expectations but uncertainties in China remain, said Eugene Investment and Securities on Nov. 9 maintaining a “hold” recommendation.
Its operating profit dropped 39.8 percent on-year to 67.3 billion won but was in line with market consensus. Revenue from existing games such as “Lineage 2: Revolution” and “Marvel: Contest of Champions” declined and marketing costs increased, dragging down the figures. In China, government regulations on gaming industry are strengthening and it is unclear when approvals for new games will resume making it hard to predict whether its mega hit “Lineage 2: Revolution” can be launched there, said analyst Cheong Ho-yun.
When new MMORPGs based on NCSoft and Nexon’s intellectual properties are released from next year, competition in domestic mobile games will heighten further. Netmarble will need confirmation for the Chinese rollout of “Lineage 2” to appeal to investors, added the analyst.
By Hwang You-mee (firstname.lastname@example.org)