Netmarble, a Time When a Global Hit New Release Is Needed

Netmarble's Q4 Last Year Results: Revenue 551.8 Billion KRW, Operating Profit 50.2 Billion KRW

Netmarble's 'Seven Knights 2' (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Opinions have emerged that Netmarble needs a new global hit title.

According to Shinhan Financial Investment on the 15th, Netmarble's Q4 results last year recorded sales of 551.8 billion KRW and operating profit of 50.2 billion KRW. Compared to the previous quarter, these figures decreased by 11% and 40.5%, respectively. The revenues from the Chinese titles 'Seokgisidae' and 'The Seven Deadly Sins,' which had driven a performance surprise in Q3 last year, have stabilized downward, and the new titles released in Q4 last year were found to have failed to succeed. Except for 'Marvel Contest of Champions (MCOC),' most existing games also saw a decline in sales.

Accordingly, there is an opinion that a global mega-hit new title is needed to rebound the stock price. Researcher Lee Moonjong of Shinhan Financial Investment said, "There are five new titles scheduled for release in the first half of the year: 'Magic: ManaStrike,' 'The Seven Deadly Sins Global,' 'A3,' 'Blade & Soul Global,' and 'Marvel Realm of Champions (MROC).' Magic: ManaStrike was released last month but showed poor performance. It is positive that they are preparing games with strong intellectual property (IP) power aimed at the global market," adding, "However, since the probability of success has recently been declining, a strategy to respond after release is effective." Netmarble's stock price reached a 52-week high of 138,000 KRW on April 15 last year but has been declining since and has not significantly rebounded. The closing price on the 14th was 97,700 KRW.

Researcher Lee Jinman of SK Securities also said, "Although many new titles are scheduled this year, for a turnaround in performance, the results of titles with high global IP recognition and large scale such as MROC and 'Seven Knights Revolution' are expected to be important," adding, "'Seven Knights 2' and 'Seven Knights Revolution' are expected to be released after the second half of the year."

Meanwhile, the value of investment assets held by Netmarble is estimated at a total of 3.7 trillion KRW. The order is Big Hit Entertainment at 504.4 billion KRW, Coway at 1.7 trillion KRW, NCSoft at 1.3 trillion KRW, Kakao Games at 71.4 billion KRW, and Kakao Bank at 144 billion KRW. If Big Hit's initial public offering (IPO) materializes this year, the value of investment assets is likely to be maximized.

This content was produced with the assistance of AI translation services.