[E-Daily Reporter Park Jung-Soo ] On the 10th, Hana Securities lowered its earnings estimates for Netmarble Corporation(251270), citing that the performance of new titles released in the first half of the year fell short of expectations. The firm maintained its “Buy” investment rating but revised its target price downward by 9% from 66,000 won to 60,000 won. The previous day’s closing price was 38,250 won.
Lee Jun-ho, an analyst at Hana Securities, stated, “It is time to adjust our expectations as the commercial performance of new titles released in the first half fell short of expectations,” adding, “The company must demonstrate its strength in its high-volume release strategy and its ability to manage the product life cycle (PLC), which has been cited as a weakness.”
Hana Securities projected that Netmarble Corporation’s second-quarter consolidated revenue would reach 721.4 billion won, a 0.5% increase year-over-year, while operating profit would decline by 23.1% to 77.8 billion won. These figures fall short of market consensus. The operating profit margin (OPM) is expected to be 10.8%.
The weak performance was attributed to the fact that “The Seven Deadly Sins: Origin” and “MonGil: STAR DIVE,” released in the first half of the year, failed to meet expectations. The report explained that even a rebound in existing hits such as “Marvel Contest of Champions” and “The Seven Deadly Sins: GRAND CROSS” was insufficient to offset increased marketing costs for the new titles.
The annual earnings outlook for this year was also lowered. Hana Securities estimated that this year’s revenue would be 2.7497 trillion won, a 3.0% decrease from the previous year, and operating profit would be 288.5 billion won, down 18.1%. The earnings forecast was revised downward to reflect the revenue trends of new titles released in the first half of the year.
Five new titles, including “I Alone Level Up: KARMA,” are scheduled for release in the second half of the year. Among these, “Project EGIS Co., Ltd,” unveiled in May, is a highly anticipated global IP-based AFK idle RPG currently under development by the company’s U.S. subsidiary, Kabam. However, expectations for its success are somewhat lower compared to the new titles released in the first half of the year.
The analyst stated, “It will likely be possible to revise earnings estimates upward only after information on new titles for 2027 is disclosed,” adding, “In the short term, a rebound driven by the success of new titles in the second half of the year and major updates to ‘The Seven Deadly Sins: Origin’ and ‘MonGil: STAR DIVE’ will be the key factors in increasing the company’s value.”