[Click eStock] "Mr. Blue, Content Operating Profit Margin Improvement Expected Due to COVID-19 Resurgence"

[Asia Economy Reporter Hyunseok Yoo] Kyobo Securities analyzed on the 25th that Mr. Blue is expected to see further improvement in content operating profit margin due to the resurgence of the novel coronavirus (COVID-19). No investment opinion or target price was provided.

Mr. Blue is engaged in the production and distribution of martial arts webtoon content. In September last year, it launched the mobile MMORPG game 'EOS Red' domestically. It was released in Taiwan, Hong Kong, and Macau in July. As of last year, the revenue composition was 49.0% from content and 51.0% from games.

Ji-won Park, a researcher at Kyobo Securities, said, "Since the start of pre-registration in Taiwan in June, we successfully recruited 1 million local pre-registrants within 28 days." He added, "The official launch was on the 22nd of last month, and currently seven servers are open. Comparing this with last year's domestic sales ranking trends, solid overseas performance is expected, and sales to Taiwan in the second half of the year are projected at 15 billion KRW."

He explained, "In the second quarter, the content division's OPM is expected to improve by +2.3 percentage points quarter-on-quarter due to the internalization of illustrators and the effect of subscription price increases." He continued, "With the resurgence of COVID-19, online content consumption is expected to increase, leaving room for further improvement in content OPM." He added, "There is a plan to enter the Chinese PC game market in the second half of the year, and if Xi Jinping's visit to Korea is realized, there is anticipation for the issuance of mobile game licenses."

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