[Click eStock] "JoyCity Expected to Grow Next Year with New Releases and New Businesses"

Expecting Inflow to Southeast Asia from Existing North America-Focused Structure

[Asia Economy Reporter Gong Byung-sun] Joycity is aiming for performance growth starting next year. New releases, Play to Earn (P2E), and Non-Fungible Token (NFT) games are expected to serve as growth drivers.

According to KB Securities on the 24th, Joycity plans to release the new title "Project M" in the first half of next year. The previously delayed Project M became possible to launch after completing a contract with the global publisher Bilibili. Based on the stable performance of existing games, if Joycity additionally releases new titles such as Project M, Disney Lights Saga, King of Fighters, and Project NEO next year, significant performance growth is expected.

The new businesses related to P2E and NFT are also anticipated to have a positive impact on growth. After signing a Memorandum of Understanding (MOU) with Wemade, Joycity plans to launch a P2E model for "Gunship Battle" within the first quarter of next year. Gunship Battle is Joycity’s representative title, having recorded over 100 million global downloads.

Yoon Chang-bae, a researcher at KB Securities, stated, “We focus on the activation of the overall game ecosystem through the influx of Southeast Asian users from the existing North America-centered structure,” adding, “If NFT adoption is fully implemented in the future, additional revenue is expected by linking with existing intellectual properties (IP) such as war simulations and subculture.”

Meanwhile, Joycity recorded sales of 47.5 billion KRW in the third quarter of this year, a 4.4% increase compared to the same period last year, and operating profit of 4.1 billion KRW, a 26.7% decrease during the same period. The decline in sales of main games due to seasonal off-season and reduced marketing is interpreted as having negatively affected the performance.

There is also an outstanding convertible bond worth 2.7 billion KRW remaining, which corresponds to 1.8% of the total circulating shares. KB Securities did not provide an investment opinion or target price for Joycity.

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