Korea Stock Market Insights

Tag: Gaming Stocks

  • WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do?

    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 대표 차트 이미지

    1. What Happened to WeMade?

    WeMade reported dismal H1 2025 earnings, with revenue of ₩258.6B and a net loss of ₩48.9B. The slump in the mobile game sector and slow growth in the blockchain business are cited as the main reasons. Furthermore, the company recently lost a lawsuit filed by former and current employees, requiring it to pay approximately ₩9.9B.

    2. Why Did This Happen?

    Struggling Game Business: Increased competition in the mobile game market, lack of new titles, and aging of existing IPs are contributing factors. While the ‘Legend of Mir’ IP licensing business generates stable revenue, its contribution to overall sales is minimal.
    Uncertainty in Blockchain Business: WeMade is expanding its blockchain business centered around the ‘WEMIX’ platform, but volatility in the cryptocurrency market and regulatory issues hinder significant achievements. The success of ‘Night Crow Global’ will be a crucial factor in the future of this business.
    Lost Lawsuit: The lost lawsuit against former and current employees damages the company’s image and adds financial burden.

    3. What’s Next for WeMade?

    WeMade needs to leverage its ‘Legend of Mir’ IP, expand its licensing business, and focus on developing blockchain games to secure long-term growth engines. It must also strengthen its financial health by managing debt and reducing debt ratios.

    4. What Should Investors Do?

    • In the short term, be wary of increased stock volatility. Carefully monitor WeMade’s performance improvement and the outcome of its blockchain business, adjusting investment strategies accordingly.
    • In the long term, pay attention to the growth potential of WeMade’s IP power and blockchain business. Consider the success of ‘Night Crow Global,’ new game releases, and improvements in financial health when formulating long-term investment strategies.

    Frequently Asked Questions

    What are WeMade’s main businesses?

    WeMade’s main businesses are game development and publishing, IP licensing, and blockchain.

    Why are WeMade’s recent earnings so poor?

    Several factors contributed, including increased competition in the mobile game market, lack of new titles, aging of existing IPs, and uncertainty in the blockchain business.

    What is the outlook for WeMade?

    WeMade is aiming for growth through the expansion of its ‘Legend of Mir’ IP-based business and blockchain game development. The success of ‘Night Crow Global’ will be a critical factor.

    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 관련 이미지
    WeMade Faces Double Whammy: Poor Earnings and Lost Lawsuit. What Should Investors Do? 관련 이미지

  • Neowiz IR Analysis: Soaring with Lies of P, Can Growth Momentum Continue?

    1. Neowiz IR: What Was Discussed?

    Neowiz unveiled its mid-to-long-term growth strategies and current business status at Shinhan Investment Corp.’s Corporate Day on September 1, 2025. Key topics included the expansion strategy for the Lies of P IP, the new game lineup, and the Web3 game platform ‘Intella X’. They analyzed the strong performance of the gaming business in the first half of 2025 and outlined plans to secure future growth engines.

    2. What are the Key Growth Drivers and Risks?

    ✅ Positive Factors

    • Lies of P IP expansion and stable performance of Brown Dust 2
    • Treasury stock acquisition to enhance shareholder value
    • Continued high level of R&D investment

    ❌ Negative Factors

    • Need for proactive response to intensifying competition and new technology adoption
    • Uncertainty and regulatory risks in the virtual asset business
    • Need for clear explanation of declining sales and presentation of growth strategies

    3. Post-IR: What Should Investors Do?

    Investors should carefully analyze the IR presentation and examine the specific implementation plans for mid-to-long-term strategies and risk management measures for the virtual asset business. It is crucial to consider factors such as competitiveness against rivals, strategies for responding to market trend changes, and financial soundness when making investment decisions.

    Frequently Asked Questions

    What are Neowiz’s main games?

    Lies of P, Brown Dust 2, and Cats & Soup are some of their key titles.

    What is Neowiz’s virtual asset business?

    They operate the Web3 game platform ‘Intella X’ and are working on issuing related tokens and building the ecosystem.

    What are Neowiz’s future growth strategies?

    They are pursuing the expansion of the Lies of P IP, development of new games, and expansion of the Web3 game platform business.

  • Shift Up’s Q2 2025 Earnings Soar: Nikke and Stellar Blade Drive Growth 🚀 | Investment Analysis

    1. What Happened?: Shift Up Announces Strong Q2 2025 Earnings

    Shift Up announced its Q2 2025 preliminary earnings, reporting revenue of ₩112.3 billion, operating profit of ₩68.2 billion, and net income of ₩51.3 billion. This significantly exceeded market expectations by 32% and 14%, respectively.

    2. Why?: Double-Digit Growth Driven by ‘Nikke’ and ‘Stellar Blade’

    Goddess of Victory: Nikke maintained stable sales thanks to successful entry into the Chinese market, while Stellar Blade’s global PC launch fueled revenue growth. As a result, H1 2025 accumulated operating revenue reached ₩154.6 billion (+50% YoY), and operating profit reached ₩94.5 billion (+32% YoY). Stellar Blade’s growth notably contributed to maintaining a 61.1% operating profit margin.

    3. What’s Next?: Positive Outlook, But Risk Management is Key

    In the short term, the strong earnings announcement is expected to provide positive momentum for the stock price. In the medium to long term, continued live service of Nikke, Stellar Blade IP expansion, and new IP development are expected to drive growth. However, the declining USD/KRW exchange rate, uncertainties surrounding new IP development, and dependence on Nikke revenue are potential risk factors.

    4. Investor Action Plan: Focus on Growth Potential, Manage Risks

    Shift Up has high growth potential based on its strong development capabilities and successful IP management. Continued investment while closely monitoring the performance of key IPs and new IP development progress is warranted. However, constant monitoring of potential risk factors such as exchange rate fluctuations and uncertainties in new IP development is crucial.

    What were Shift Up’s Q2 2025 revenue and operating profit?

    Shift Up’s Q2 2025 revenue was ₩112.3 billion, and operating profit was ₩68.2 billion.

    What are Shift Up’s main games?

    Shift Up’s main games are Goddess of Victory: Nikke and Stellar Blade.

    What is the outlook for Shift Up’s future growth?

    Shift Up is expected to experience positive growth through the solid performance of its core IPs and new IP development. However, exchange rate fluctuations and uncertainties surrounding new IP development pose risks.

  • Mitoon (201490) Q2 2025 Earnings: A Surprise Beat, But What’s Next for ACE CASINO?

    1. Mitoon’s Q2 Performance: Decoding the Earnings Surprise

    Mitoon reported Q2 2025 revenue of KRW 22.3 billion, operating profit of KRW 2.9 billion, and net income of KRW 2.3 billion, significantly exceeding market expectations. While slightly down from Q1, this performance is encouraging given the overall industry slump. This is attributed to the initial success of ACE CASINO and Pixelpure, along with efficient cost management.

    2. ACE CASINO and K-Beauty: Mitoon’s New Growth Engines?

    Mitoon launched ACE CASINO to enter the Web3 gaming market and diversified its business with the K-beauty brand Pixelpure. Early results are positive, but long-term success depends on securing market competitiveness and continuous content development.

    3. Key Risk Factors for Investors

    • Core Business Recovery: Overcoming the downturn in the gaming business is crucial.
    • New Business Performance: Monitoring the actual revenue contribution of ACE CASINO and Pixelpure is essential.
    • Macroeconomic Uncertainty: The impact of external factors like exchange rate and interest rate fluctuations must be considered.
    • Convertible Bond Dilution: Potential stock dilution from convertible bonds should be factored in.

    4. Should You Invest in Mitoon? A Strategic Approach

    While positive short-term price momentum is expected, a cautious approach is recommended for long-term investors. Closely monitoring the performance of new ventures and the recovery of the core business is crucial. Currently, a wait-and-see approach is recommended, pending further performance improvements and concrete results from new businesses.

    Frequently Asked Questions

    How did Mitoon perform in Q2 2025?

    Mitoon posted better-than-expected results in Q2 2025, with revenue of KRW 22.3 billion, operating profit of KRW 2.9 billion, and net income of KRW 2.3 billion.

    What is ACE CASINO?

    ACE CASINO is a stablecoin-based Web3 casino platform launched by Mitoon in June 2025.

    What is Mitoon’s K-beauty venture?

    Mitoon launched the K-beauty brand ‘Pixelpure’ in May 2025 as part of its business diversification strategy.

    What are the key investment considerations for Mitoon?

    Investors should consider the performance of new ventures, core business recovery, macroeconomic conditions, and potential stock dilution from convertible bonds.

  • NCSOFT (036570) Q2 2025 Earnings Analysis: A Mixed Bag for Investors

    1. NCSOFT Q2 2025 Performance: What Happened?

    NCSOFT reported revenue of KRW 382.3 billion (YoY decrease), operating profit of KRW 15 billion (return to profitability), and a net loss of KRW 35.9 billion for Q2 2025. While revenue and operating profit exceeded market expectations, the net loss was significantly worse than anticipated.

    2. Why These Results?

    Declining revenue is primarily attributed to lower sales from key titles like ‘Lineage M’, ‘Lineage 2M’, and ‘Lineage W’. The return to operating profit suggests successful cost-cutting measures. However, the substantial net loss likely stems from unexpected factors like losses from subsidiaries or investment valuations. Global launches of ‘Project E’ and ‘Journey of Monarch’, coupled with investments in new game development, are positive for long-term growth but put pressure on short-term profitability.

    3. What’s Next? Investment Strategies

    NCSOFT’s future presents both opportunities and risks. New game releases, platform diversification, and strong ESG performance are positive indicators. However, the net loss, high R&D expenses, foreign exchange volatility, and intensifying competition pose significant risks. Therefore, the current investment outlook is neutral. Short-term focus should be on understanding the reasons behind the net loss, while long-term investors should monitor the success of new releases and forex movements.

    4. Action Plan for Investors

    • Analyze the causes of the net loss and assess the likelihood of recurrence.
    • Monitor the initial performance of new game releases (especially ‘Throne and Liberty’).
    • Analyze the impact of foreign exchange fluctuations on earnings.
    • Evaluate the effectiveness of R&D investments and new technology adoption.
    • Monitor the continuation of shareholder return policies.

    FAQ

    Q: Why did NCSOFT report a net loss in Q2 2025?

    A: The net loss likely resulted from unforeseen factors like losses from subsidiaries or investment valuations. Further clarification from the company is needed.

    Q: What is the outlook for NCSOFT?

    A: The outlook is mixed, with positive factors like new game releases and platform diversification alongside negative factors such as the net loss and increased competition. Careful consideration is advised before investing.

    Q: What should investors watch out for regarding NCSOFT?

    A: Investors should monitor the causes of the net loss, the success of new game releases, and the impact of foreign exchange fluctuations.

  • Com2uS (078340) Half-Year Report Amendment: Key Takeaways for Investors

    1. What Happened?

    Com2uS corrected errors in the “Investments in Associates (Consolidated)” section of its 2025 half-year report. The primary focus was on improving the accuracy of details related to investments in associates, including company names, countries, principal business activities, fiscal year-ends, ownership percentages, and carrying amounts.

    2. Why Does it Matter?

    While the amendment doesn’t directly impact Com2uS’s fundamentals, it enhances transparency regarding its investment portfolio and reveals some potential risks. Investors should pay close attention to changes such as the new acquisition of ‘Pectus-SBP No. 1 New Technology Business Investment Association,’ the decrease in the carrying amount of ‘MediaCan Co., Ltd.,’ and the discontinuation of equity method accounting for ‘WCulture Co., Ltd.’

    Additionally, the company’s Q2 2025 earnings fell short of expectations, with operating profit significantly below estimates, which could negatively impact investor sentiment.

    3. What Should Investors Do?

    Investors should carefully analyze the financial status, business performance, and growth potential of Com2uS’s associated companies, based on the amended information. Developing risk management strategies for companies with high volatility is crucial. Furthermore, analyzing the reasons for the lower-than-expected Q2 earnings and assessing the potential for future earnings improvement, as well as monitoring the impact of macroeconomic factors (exchange rates, interest rates, oil prices, etc.) on Com2uS’s performance, is essential.

    4. Investor Action Plan

    • Deep Dive into Associate Investments: Analyze the financial health and outlook of each associated company using the corrected information and develop risk mitigation strategies, especially for volatile investments.
    • Analyze Earnings and Future Outlook: Investigate the reasons for the Q2 earnings miss and evaluate the potential for future earnings recovery to inform investment decisions.
    • Monitor Macroeconomic Factors: Continuously observe the impact of fluctuating exchange rates, interest rates, and oil prices on Com2uS’s performance.
    Q: What are the key takeaways from Com2uS’s half-year report amendment?

    A: The amendment aimed to improve the accuracy of details regarding investments in associates. Key changes include the acquisition of ‘Pectus-SBP No. 1 New Technology Business Investment Association,’ a decrease in the carrying amount of ‘MediaCan Co., Ltd.,’ and the discontinuation of equity method accounting for ‘WCulture Co., Ltd.’

    Q: How might this amendment affect Com2uS’s stock price?

    A: While the amendment doesn’t change fundamentals, increased transparency and the disclosure of potential risks warrant investor attention. The Q2 earnings miss could also negatively impact the stock price.

    Q: What should investors consider moving forward?

    A: Investors should consider the amended information, the Q2 earnings miss, and the potential impact of macroeconomic factors when making investment decisions.

  • Kakao Games Q2 2025 Earnings Analysis: Crisis or Opportunity?

    1. What Happened? Q2 2025 Earnings Breakdown

    Kakao Games reported revenue of KRW 115.8 billion, an operating loss of KRW 8.6 billion, and a net loss of KRW 33.5 billion for the first half of 2025. The decline in sales compared to the same period last year is primarily attributed to the base effect of “Odin: Valhalla Rising” and the lack of new titles.

    2. Why These Results? Analyzing the Earnings Decline

    In addition to declining sales, increased R&D expenses, expanded marketing costs, and new investments led to an operating loss. Net loss also significantly fell short of market expectations, potentially negatively impacting investor sentiment.

    3. What’s Next? Future Outlook and Investment Strategies

    Kakao Games is striving to improve its fundamentals through the growth of its PC game segment and R&D investments aimed at securing future growth drivers. However, risk factors such as declining sales, worsening profitability, high R&D expenses, and financial burdens also exist. Therefore, investors should maintain a conservative investment strategy while closely monitoring the success of new titles and the visibility of a turnaround.

    4. Investor Action Plan

    • Short-term Investment: A cautious approach is necessary, considering market conditions and stock price volatility.
    • Mid- to Long-term Investment: Continuously monitor the success of new releases and the visibility of a turnaround.

    Frequently Asked Questions

    How did Kakao Games perform in the first half of 2025?

    The company reported revenue of KRW 115.8 billion, an operating loss of KRW 8.6 billion, and a net loss of KRW 33.5 billion.

    What are the main reasons for the decline in earnings?

    The base effect of “Odin: Valhalla Rising”, the absence of new titles, and increased R&D expenses are the primary factors.

    What is the future outlook for Kakao Games?

    While the growth of the PC game segment and R&D investments are positive, risk factors like declining sales and profitability exist. The success of new games is a key variable.

  • Neowiz Holdings Soars with Record-Breaking Earnings in H1 2025! Lies of P Fuels Stock Surge?

    1. What Happened?

    Neowiz Holdings announced impressive earnings in its H1 2025 report, with revenue of KRW 110.4 billion, operating profit of KRW 17.1 billion, and net income of KRW 25.8 billion. This significantly exceeded market expectations, driven by the success of “Lies of P” and “Brown Dust 2.”

    2. Why These Results?

    The robust growth of its core game business was the primary driver. The successful launch of “Lies of P” and the solid performance of “Brown Dust 2” significantly contributed to revenue and profit growth. Improved profitability in other business segments, such as advertising, investment, and commissioned services, also played a positive role. The company successfully turned around from a loss in Q4 2024, demonstrating a recovery in fundamentals.

    3. What’s Next?

    This earnings surprise is expected to trigger a re-evaluation of Neowiz Holdings’ corporate value. The successful recovery of the game business validates its core competencies, and the positive earnings will boost investor confidence, providing momentum for stock price appreciation. Continued growth of the “Lies of P” IP and global expansion of “Brown Dust 2” could further drive the stock’s upward trajectory.

    • However, caution is advised. Uncertainties surrounding new technology investments and the virtual asset business, as well as macroeconomic volatility, remain risk factors.

    4. What Should Investors Do?

    • Continuously monitor the performance of the game business and new technology investments.
    • Keep an eye on the company’s strategies for managing regulatory risks related to the virtual asset business and changes in macroeconomic indicators.
    • It’s also important to check the sustainability of shareholder return policies.

    How did Neowiz Holdings perform in the first half of 2025?

    Neowiz Holdings achieved an earnings surprise in the first half of 2025, recording KRW 110.4 billion in revenue, KRW 17.1 billion in operating profit, and KRW 25.8 billion in net income.

    How did “Lies of P” impact Neowiz Holdings’ earnings?

    The successful launch and popularity of “Lies of P” were key drivers of Neowiz Holdings’ revenue and profit growth.

    What is the outlook for Neowiz Holdings?

    A positive outlook is expected, considering the growth of the game business and the potential for corporate value re-evaluation. However, caution is needed regarding risks related to new technology investments and the virtual asset business, as well as macroeconomic volatility.

  • Shift Up Q2 2025 Earnings: A Massive Beat Driven by Nikke and Stellar Blade!

    1. Shift Up Q2 2025 Earnings: A Massive Beat!

    Shift Up reported impressive Q2 2025 earnings with revenue of ₩112.3 billion, operating profit of ₩68.2 billion, and net income of ₩51.3 billion. These figures exceeded market expectations by a significant margin: +167%, +160%, and +92% respectively, showcasing the company’s remarkable growth trajectory.

    2. Drivers of Growth: The Success of Nikke and Stellar Blade

    ‘Goddess of Victory: Nikke’ maintained steady revenue through consistent content updates and a growing global fanbase, contributing 50.07% of Q2 revenue. ‘Stellar Blade’ also saw significant success with its PC release, driving new user acquisition and revenue growth, claiming a 47.04% revenue share.

    3. Strong Fundamentals: High Operating Margin and Active R&D Investment

    A high operating margin of approximately 60.7% demonstrates Shift Up’s exceptional development capabilities and efficient business operations. Furthermore, the company’s substantial investment in R&D, representing 33.99% of revenue, highlights its commitment to developing its next title, ‘Project Spirit’, boosting future growth potential. A low debt-to-equity ratio of 11.71% further indicates a stable financial structure.

    4. Investor Action Plan: Is Now the Time to Invest?

    Shift Up is expected to continue its growth trajectory based on its current momentum. The successful launch of ‘Project Spirit’ holds significant potential to act as a new growth driver. However, investors should carefully consider potential risk factors such as dependence on specific games, foreign exchange volatility, and intensifying competition.

    Q: What were Shift Up’s key financial results for Q2 2025?

    A: Shift Up reported revenue of ₩112.3B, operating profit of ₩68.2B, and net income of ₩51.3B, significantly exceeding market expectations.

    Q: What are Shift Up’s main games?

    A: ‘Goddess of Victory: Nikke’ and ‘Stellar Blade’ are Shift Up’s primary games, both significantly contributing to the company’s Q2 2025 performance.

    Q: What is the outlook for Shift Up?

    A: With positive current performance and high anticipation for the new IP ‘Project Spirit’, Shift Up’s future growth potential is considered strong. However, market conditions and competitive landscape changes should be considered.

  • Joycity (067000) H1 2025 Earnings Report Analysis: Profitability Concerns Despite Turnaround

    1. Joycity’s H1 2025 Performance: What Happened?

    Joycity reported revenue of KRW 32.9 billion, operating profit of KRW 3.1 billion, and a net loss of KRW 0.4 billion for the first half of 2025. While operating profit turned positive, the net loss signals a concerning trend in profitability. This is attributed to a combination of factors, including continued revenue decline due to increased competition and a lack of new releases, coupled with rising R&D expenses and volatility in investment assets.

    2. Why These Results?

    The decline in revenue is primarily due to intensified competition in the gaming market and a lack of new game releases. While existing titles like ‘Pirates of the Caribbean: Tides of War’ and ‘Gunship Battle: Total Warfare’ performed steadily, they couldn’t offset the overall downward trend. High R&D expenses (19.95% of revenue) put pressure on short-term profitability, and volatility in cryptocurrency investments contributed significantly to the net loss.

    3. What’s Next for Joycity?

    Joycity is actively developing new titles, including ‘Resident Evil: Survival Unit’, ‘Disney Realm Breakers’, and a ‘Freestyle’ IP-based soccer game. Successful launches could drive revenue growth and improve profitability. However, high R&D expenses, low retained earnings, and cryptocurrency investment risks remain key challenges.

    4. What Should Investors Do?

    • Closely monitor new game release schedules and market reception.
    • Pay continued attention to the efficiency of R&D spending and return on investment.
    • Keep an eye on cryptocurrency market trends and Joycity’s investment performance, considering the associated risks.
    • Monitor changes in global game market regulations and Joycity’s response strategies.

    Frequently Asked Questions (FAQ)

    What were Joycity’s financial results for H1 2025?

    Joycity reported revenue of KRW 32.9 billion, operating profit of KRW 3.1 billion, and a net loss of KRW 0.4 billion for the first half of 2025.

    What are the key risk factors for Joycity?

    High R&D expenses, low retained earnings, and cryptocurrency investment risks are among the key concerns.

    What is the outlook for Joycity?

    The outlook depends on factors such as the success of new game launches, R&D efficiency, and cryptocurrency investment performance.