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Photo = Netmarble |
[Alpha Biz= Paul Lee] Seoul, May 9, 2025 – Daishin Securities announced today that it has raised its target price for Netmarble Corp. from KRW 52,000 to KRW 65,000, and upgraded its investment rating from ‘Hold’ to ‘Buy’. The update follows a strong earnings performance in the first quarter and growing expectations for further improvement driven by new game launches and continued cost efficiency.
Lee Ji-eun, an analyst at Daishin Securities, stated, “Sales from existing high-margin titles have not only rebounded but are also maintaining stability. With better-than-expected performance of newly released titles, we have revised our forecast upward.” Lee added that the company’s operating profit forecast for 2025 has been raised by 80%, citing continued cost optimization and improving profitability.
In Q1 2025, Netmarble reported consolidated revenue of KRW 623.9 billion and operating profit of KRW 49.7 billion, delivering an earnings surprise. The performance was largely driven by popular titles such as Solo Leveling: ARISE and Raven 2, which saw a 28% quarter-over-quarter increase in sales and steady revenue retention respectively.
The company’s focus on operational efficiency also contributed to profitability gains. Cost-saving efforts such as controlled headcount, reduced commission fees from expanded in-house IP titles, and optimized marketing spending supported the bottom line despite new game launches.
Looking ahead, Netmarble is set to launch several major titles, including Seven Knights Rebirth and Game of Thrones: King’s Road in Q2, followed by the highly anticipated AAA game The Seven Deadly Sins: Origin in the second half of the year. Cost discipline is expected to remain in place, enabling continued profit growth.
“We see strong visibility for earnings growth,” Lee said. “As new releases continue to outperform expectations, concerns around valuation will likely ease.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
