[Click eStock] "Daewon Media Expected to Achieve Record Results Thanks to Nintendo Switch 2 Effect"

On August 19, independent research firm ARIS analyzed Daewon Media, stating that the company is expected to achieve record-high results thanks to the impact of the Nintendo Switch 2. ARIS did not provide an investment opinion or target price.

ARIS projected that Daewon Media will post sales of 340 billion KRW and operating profit of 17 billion KRW this year. Lee Jaemo, a researcher at ARIS, commented, "As the largest distributor in Korea, Daewon Media is expected to expand its Nintendo distribution business revenue, driven by a loyal customer base and high pre-order rates. Looking at the previous launch of the Nintendo Switch 1, sales volume is expected to rise sharply from this year through 2027."

He added, "Revenue diversification is anticipated through OSMU of its owned IPs. The company is expanding its business volume by diversifying revenue models, such as exhibitions, pop-up stores, and random merchandise draws utilizing its licenses for Crayon Shin-chan, Studio Ghibli, and Doraemon."

He further emphasized, "The amortization of production costs for 'Armored Saurus,' which accounted for a significant portion of annual operating expenses, will be completed in the second quarter of this year. In addition, the stabilization of previously loss-making subsidiaries is expected to reduce deficits and potentially turn them profitable, leading to an increase in net profit."

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