[Click eStock] Wemade, Rebound with Mir4... 1Q Profit Turnaround Confirmed

One Store, Galaxy Store Show Mir4 Strength in Niche Markets
Daily Sales Around 400 Million KRW... Overseas Launches Also Positive Factors

[Asia Economy Reporter Minwoo Lee] Wemade is expected to make a comeback through its new title 'Mir4'. In the fourth quarter of last year, the deficit was significantly reduced compared to the previous quarter, and it is expected to turn a profit in the first quarter of this year.

On the 15th, Shinhan Financial Investment maintained a 'Buy' rating and a target price of 55,000 KRW for Wemade based on this background. The closing price on the previous trading day was 42,900 KRW.

In the fourth quarter of last year, Wemade recorded consolidated sales of 47 billion KRW and an operating loss of 3.2 billion KRW. Sales increased by 95% compared to the same period last year, but losses continued. Compared to the previous quarter, sales nearly doubled and the deficit was reduced to one-third. Lee Moon-jong, senior researcher at Shinhan Financial Investment, explained, "Although losses continued due to marketing for the new game 'Mir4', sales from all platforms including mobile, license, and PC online increased compared to the previous quarter and the same period last year," adding, "It recorded the highest quarterly sales in 28 quarters."

Mobile game sales reached 25.6 billion KRW, an increase of 194.8% compared to the previous quarter. This is attributed to the success of Mir4, which was released on November 25 last year. The estimated daily sales of Mir4 in the fourth quarter of last year were about 430 million KRW. License sales increased by 57.4% during the same period to 15.8 billion KRW. This was influenced by increased sales of existing games during the peak season, the release of new licensed games, and recognition of deferred revenue. PC online games increased by 10.2% compared to the previous quarter due to new server events. Marketing expenses were 14.5 billion KRW, an increase of 10.4 billion KRW from the previous quarter.

In the first quarter, when Mir4's performance is fully reflected, a turnaround to profitability is expected. Mir4 is especially successful in niche markets. When combining One Store and Galaxy Store, sales exceed those on Google Play. The researcher added, "On the 13th, based on the combined rankings of the three major markets (Google, One Store, iOS) provided by Mobile Index, Mir4 ranked 7th in sales," and "It is estimated to be recording daily sales of around 400 million KRW currently."

Additionally, a global release of Mir4, including Taiwan, is scheduled for the second half of the year. MirM is also undergoing polishing work and is expected to be released within the year. Currently, Mir4 is in the process of selecting a Chinese publisher, and contracts related to Mir2's Chinese PC client service are in the final stages. The license business is also progressing smoothly. The researcher analyzed, "Concerns about performance have been resolved due to Mir4's success, and expectations related to licensing are rising," adding, "Uncertainties related to lawsuits are also gradually being resolved."

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