[Click eStock] "Netmarble, Major Game Revenue Decline... Target Price Down"

[Asia Economy Reporter Minji Lee] KB Securities maintained a neutral investment rating on Netmarble on the 1st, stating that the company needs games capable of generating stable revenue, and kept the target price at 93,000 won, down 4.1%.

In the fourth quarter, the company recorded sales of 551.8 billion won and operating profit of 50.2 billion won, down 11% and 40.5% respectively from the previous quarter. Compared to market expectations, these figures fell by 6.9% and 24.5% respectively.

Researcher Dongryun Lee of KB Securities explained, “The release schedules of major anticipated titles such as Seven Knights 2 and A3, which were expected to launch in the fourth quarter, were delayed,” adding, “Due to the decline in sales of existing games, both sales and profits decreased compared to the previous quarter.”

Among the games, only L2R showed a 4% growth compared to the same period last year. MCoC declined by 17% during the same period, and most games including Marvel Future Fight (-29%), The Seven Deadly Sins (-27%), and BTS World (-55%) saw sales decrease compared to the previous quarter.

Major lineups scheduled for the first half of the year include Magic: Mana Strike, The Seven Deadly Sins, A3, Blade & Soul Revolution, and Marvel Realm of Champions. The Seven Deadly Sins is showing favorable global pre-registration status, and A3 is raising expectations by combining MMORPG and battle royale genres. Marvel Realm of Champions is also considered a major anticipated title for the first half of the year, leveraging the globally recognized Marvel IP.

Researcher Lee emphasized, “The release schedule of Seven Knights 2, which utilizes the Seven Knights IP, has been delayed to the second half of the year,” and added, “Since L2R recorded domestic success, the absence of notable global hits has lowered performance, so it is necessary to develop games that can sustain long-term popularity.”

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