[Click eStock] "Netmarble to Record All-Time High Performance Next Year"

Shinhan Investment Corp. analyzed on the 8th that Netmarble will record its highest-ever performance next year. The investment opinion 'Buy' and the target stock price of 96,000 KRW were maintained.

Netmarble recorded operating revenue of 647.3 billion KRW and operating profit of 65.5 billion KRW in the third quarter of this year. Compared to the same period last year, sales increased by 2.7%, and operating profit turned positive. Kang Seok-oh, a researcher at Shinhan Investment Corp., said, "Since three new titles were released simultaneously in the previous quarter, it was inevitable to see a downward stabilization in sales this quarter, but marketing expenses and commission fees also decreased accordingly, resulting in higher-than-expected profitability."

Netmarble plans to release 10 new titles next year. This includes the nine titles revealed through the earnings announcement lineup and 'Project SOL' by Alt Nine, with which a recent publishing contract was signed. He emphasized, "We judge that there are four new titles with the potential to generate daily sales exceeding 1 billion KRW. Since most of next year's lineup was announced through this earnings report, market expectations are expected to rise."

He added, "By releasing most of the major planned titles, Netmarble has proven a turnaround and reduced the risk of delays in new releases. While competitors are just beginning to invest in studio acquisitions or external game sourcing, Netmarble is the only game company prepared to release multiple new titles annually by securing competitive global studios." He continued, "With reduced interest expenses and improved financial structure, the operating profit leverage effect from new releases is expected to explode starting in 2025."

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