1. What Happened? Q2 Earnings Breakdown

Ghost Studio reported KRW 20.4 billion in revenue for Q2 2025, a slight recovery from Q1 but stagnant compared to the same period last year. Operating profit and net income significantly decreased to KRW 3.8 billion and KRW 3 billion, respectively, highlighting a worsening profitability trend.

2. Why These Results? Analyzing the Factors

  • Struggling Game Business: While casual game revenue remains stable, new game performance has been lackluster, and increased marketing costs due to heightened competition are impacting margins.
  • Uncertainty in Media Content: The Netflix series deal offers long-term potential, but production costs and uncertain market reception pose risks.
  • Decreased R&D Investment: This raises concerns about the company’s ability to secure future growth drivers.
  • Worsening Financial Health: A rising debt-to-equity ratio and declining liquidity trends persist.

3. What’s Next? Future Outlook

While short-term recovery seems challenging, the company’s performance in the latter half of 2025 will depend on new game releases and the success of its media content ventures. Long-term growth hinges on the success of the Netflix series and the development of new IP in the gaming sector.

4. What Should Investors Do? Investment Strategies

  • Short-Term: A cautious approach is advised. Closely monitor the company’s performance and business outcomes in the second half of the year.
  • Long-Term: Base investment decisions on the success of the media content business, expansion of the game portfolio, and the resumption of R&D investment.