[Click eStock] "Kakao Games' Growth Next Year Depends on 'Elion'"
Operating Profit in Q3 Increased by 177.7% Year-on-Year to 21.2 Billion KRW
[Asia Economy Reporter Geum Bo-ryeong] An analysis suggests that Kakao Games' growth direction next year depends on the success of 'Elion' next month.
According to Meritz Securities on the 5th, Kakao Games' Q3 earnings were an operating profit of 21.2 billion KRW and sales of 150.5 billion KRW. Operating profit increased by 177.7% and sales by 54.2% compared to the previous year. Compared to the previous quarter, they increased by 32.4% and 41.3%, respectively.
Kim Dong-hee, a researcher at Meritz Securities, explained, "Mobile game sales in Q3 were 89.5 billion KRW, a 104.1% increase from the previous year, mainly due to the domestic and overseas success of 'Guardian Tales.' The estimated daily average sales of Guardian Tales in Q3 were around 700 to 800 million KRW." He added, "PC game sales grew by 13.4% to 43.9 billion KRW, attributed to the solid performance of 'Black Desert' in North America and Europe."
Kakao Games plans to release 'Elion' on the 10th of next month, followed by 'Odin' (domestic) in Q2 next year, 'Moonlight Sculptor' (Japan, North America, Europe) in Q3, and 'World Flipper' (domestic, Southeast Asia, North America, Europe). Researcher Kim said, "Development of casual games such as 'Hello BT21,' 'Ellie’s Closet,' and 'Friends Golf' is progressing well, and through this month's G-Star, a public evaluation of the gameplay of games like Odin will be possible."
Hot Picks Today
Taking Annual Leave and Adding "Strike" to Profiles, "It Feels Like Samsung Has Collapsed"... Unsettled Internal Atmosphere
- There Is a Distinct Age When Physical Abilities Decline Rapidly... From What Age Do Strength and Endurance Drop?
- "One Comment Could Lead to a Report": 86% of Elementary Teachers Feel Anxious; Half Consider Resignation or Career Change
- "After Vowing to Become No. 1 Globally, Sudden Policy Brake Puts Companies’ Massive Investments at Risk"
- On Teacher's Day, a Student's Gifted Cake Had to Be Cut into 32 Pieces... Why?
Meritz Securities views Elion as a determinant of Kakao Games' corporate value direction. Elion is based on a 'Buy-to-play' revenue model, requiring an initial account registration fee of 9,900 KRW. Additional in-game item purchases are also available. Researcher Kim emphasized, "This year's Elion sales are assumed to be 60 billion KRW, about 76% of last year's annual sales of the domestic hit PC game 'Lost Ark.' Kakao Games' mid- to long-term corporate value and growth direction next year are expected to depend on the success of Elion next month."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
