December 04, 2023

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Netmarble will be able to create synergies when it succeeds in acquiring Nexon, said SK Securities on Feb. 19 suggesting a “buy” recommendation and 140,000 won (US$124.19) target price. 

Its revenue and operating profit last year fell 15.2 percent and 47 percent from a year ago as revenue from “Lineage 2 Revolution” is declining and its main games, including “Modoo Marble” and “Seven Knights,” are old. Fourth-quarter operating profit came in at 38 billion won, the lowest since it went public. From the first quarter this year, however, its earnings may regain as revenue from “Blade and Soul Revolution,” released in December and currently reaping up to 800 million won a day, will be fully reflected, said analyst Choi Gwan-sun.

Moreover, when it takes over Nexon, the strengths of both companies will be maximized. Nexon’s PC game lineup, strong presence in China and established intellectual properties will create synergies with Netmarble’s capacity to develop and publish mobile games. More than half of Nexon’s revenue comes from China, and it will be a big plus for Netmarble as it has been gearing up to enter the market, she added.

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