[Click eStock] "Mobirix, Positive Growth Trend in Mid-Core Games"

Published 25 Aug.2021 07:50(KST)

Eugene Investment & Securities Report

[Click eStock] "Mobirix, Positive Growth Trend in Mid-Core Games"

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities forecasted on the 25th that Mobirix will achieve external growth by increasing in-app purchase revenue through the release of mid-core games.

Mobirix, established in 2007, is a global mobile game development and publishing company currently servicing about 170 mobile games. Focusing on casual games, it has expanded its sales by releasing more than 20 new games annually worldwide, and has recorded stable performance growth through high advertising revenue (accounting for 66%) in addition to in-app purchase revenue.

Jung Eui-hoon, a researcher at Eugene Investment & Securities, said, “By utilizing its own game development technology, Mobirix was able to quickly develop and release many casual games, and many of the released games easily reached users through cross-promotion, a form of cross-advertising that exposes games to each other.” He added, “Through this, Mobirix recorded the highest number of global downloads among domestic game companies last year.”

Casual games have the disadvantage of lower user in-app purchase rates and smaller scale compared to hardcore games. Mobirix, which is casual game-centric, also has relatively low in-app purchase revenue. Researcher Jung explained, “Instead, the company increased advertising revenue through ads targeted at many game users, and since platform fees do not apply, it can record high margins.”

Going forward, the company is expected to achieve external growth by increasing in-app purchase revenue through the release of mid-core games. Last year, starting with the release of ‘Dungeon Knight Raising’ in December, the company began expanding its business portfolio from casual games to mid-core games. In March this year, it consecutively released ‘Guan Yu Raising’ and in August ‘Monster Raising,’ establishing a mid-core game lineup. This business direction is reflected in strong performance, with operating revenue in the first half reaching 29.8 billion KRW, a 39.7% increase compared to the same period last year, of which mid-core games accounted for 37.4% of sales.

Mobirix’s annual sales are predicted to reach 66 billion KRW, and operating profit 13.2 billion KRW, increasing by 50.9% and 28.8% respectively compared to the previous year. Researcher Jung said, “The fact that the mid-core game business is currently progressing successfully and the performance growth rate is fast will have a more positive effect on the company’s valuation.”