[Click eStock] "Netmarble's 2Q Surprise Earnings, Targeting 3Q with BTS New Release"

'BTS Universe Story' 3Q Release
Major New Titles Including Seven Knights Await in 4Q

The group BTS is greeting fans after completing their first paid online concert, 'Bang Bang Con The Live,' on June 14. (Provided by Big Hit Entertainment) [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Netmarble, which posted strong results in the second quarter of this year, is expected to aim for a hit in the third quarter with a new title utilizing the intellectual property (IP) of BTS (Bangtan Sonyeondan).

On the 24th, IBK Investment & Securities predicted that Netmarble would pursue such a strategy. Previously, Netmarble recorded consolidated sales of 685.7 billion KRW and operating profit of 81.7 billion KRW in the second quarter of this year. These were 'surprise results,' increasing by 30.3% and 146.1% respectively compared to the same period last year. The success of 'The Seven Deadly Sins: Grand Cross' and 'A3: Still Alive' was credited with driving overall growth. In particular, 'The Seven Deadly Sins' showed strong performance in Western regions, which were heavily affected by COVID-19.

In the third quarter, Netmarble is expected to aim for success with the new title 'BTS Universe Story.' Pre-registrations began on the 18th. Developed by its subsidiary Netmarble Monster, this sandbox-style story game includes content that allows users to share stories, dress characters in various outfits, and take augmented reality (AR) photos. The game is scheduled for release overseas, excluding China. Lee Seunghoon, a researcher at IBK Investment & Securities, explained, "Considering BTS fans, marketing costs are not expected to increase significantly."

New titles will continue to be released in the fourth quarter as well. Representative titles include sequels to Netmarble’s own IP hit 'Seven Knights,' such as 'Seven Knights 2' and 'Seven Knights Time Wonderer.' Additionally, 'Marvel Realm of Champions' and the overseas release of 'A3: Still Alive' are planned. In the first half of next year, large-scale new titles such as 'Ni no Kuni,' 'Seven Knights Revolution,' and 'Marvel Future Revolution' are scheduled for release, indicating strong potential for external growth.

Initial public offerings (IPOs) of invested companies are also attracting attention. Netmarble already holds 5.64%, 25.04%, and 3.94% stakes in Kakao Games, Big Hit Entertainment (BTS’s agency), and Korea Kakao Bank, respectively. The researcher stated, "These companies are expected to proceed with IPOs in the second half of the year, but currently, there is no intention to sell existing shares. They plan to maintain shareholder-friendly policies through dividends or share buybacks within 30% of net income attributable to controlling shareholders."

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