Netmarble reported revenue of KRW 717.6 billion, operating profit of KRW 101.1 billion, and net income of KRW 160.3 billion for Q2 2025. While revenue slightly missed market expectations, operating profit and net income significantly exceeded forecasts, delivering an earnings surprise.
2. Reasons Behind the Earnings Surprise
The surge in operating profit and net income is primarily attributed to efficient cost management and the performance of high-margin games. Notably, the operating profit margin increased significantly from 7.97% in the previous quarter to 14.09%. This demonstrates that Netmarble’s efforts to improve profitability are paying off. The turnaround that began in Q1 2025, following a weak Q4 2024, continued in Q2, supporting the recovery of fundamentals.
3. Netmarble Investment Strategies: What Should Investors Do?
Short-Term Strategy: The earnings surprise is likely to have a positive impact on the stock price in the short term. However, investors should closely monitor the schedule and performance of upcoming new game releases and the sustainability of profit improvement.
Long-Term Strategy: Focus on the performance of investments in new businesses such as blockchain and metaverse, as well as the company’s strategy to strengthen its IP competitiveness. Managing potential risks related to exchange rate fluctuations and macroeconomic uncertainties is also crucial.
4. The Future of Netmarble: What Lies Ahead?
Netmarble’s strong Q2 results have raised expectations for a turnaround. However, intensifying competition in the gaming industry, increasing new game development costs, and macroeconomic uncertainties remain as risk factors. Investors should consider these factors comprehensively and make prudent investment decisions.
Frequently Asked Questions
What was Netmarble’s revenue in Q2 2025?
Netmarble’s revenue in Q2 2025 was KRW 717.6 billion.
Did Netmarble’s Q2 earnings beat market expectations?
Yes, operating profit and net income significantly exceeded market expectations, while revenue slightly missed the mark.
What are Netmarble’s main growth drivers?
The success of new game releases and investments in new businesses such as blockchain and metaverse are expected to be the main growth drivers.
What are the key factors to consider when investing in Netmarble?
Investors should consider factors like the slight miss in revenue consensus, exchange rate fluctuations, macroeconomic conditions, and intensifying competition.
Devsisters reported impressive Q2 2025 results, with revenue of KRW 92 billion, operating profit of KRW 10.1 billion, and net income of KRW 10.2 billion, exceeding market expectations. This strong performance was driven by the continued strength of the Cookie Run IP and successful new game launches.
2. Behind the Strong Performance: Why the Success?
The Power of Cookie Run: The Cookie Run IP remains Devsisters’ core growth engine. Consistent updates and fresh content continue to expand the user base and drive revenue.
Successful New Game Launches: The successful launch of new games has further strengthened Devsisters’ growth momentum. By releasing games across various genres, the company is diversifying its portfolio and creating new revenue streams.
Global Market Expansion: The popularity of Cookie Run extends beyond Korea. With a growing share of overseas revenue, the company stands to benefit from a weaker Korean Won.
3. Future Outlook and Investment Strategy: What’s Next?
With strong fundamentals and growth potential, Devsisters is expected to maintain its growth trajectory. The company anticipates further improvements in profitability through new Cookie Run IP-based games, updates to existing games, and continued expansion into overseas markets. However, investors should be mindful of increased competition in the gaming industry and foreign exchange volatility.
4. Key Takeaways for Investors
Success of new game launches and their market reception.
Ability to effectively manage live services for existing games.
Success of Cookie Run IP expansion strategy.
Frequently Asked Questions
Q: What is Devsisters’ primary source of revenue?
A: Devsisters’ primary revenue source is mobile games based on the Cookie Run IP. They generate revenue through in-app purchases, advertising, and other monetization strategies.
Q: What is Devsisters’ future growth strategy?
A: Devsisters plans to continue its growth through the development of new Cookie Run IP-based games, updates to existing titles, and expansion into international markets.
Q: What are the key risks to consider when investing in Devsisters?
A: Investors should be aware of increased competition in the gaming industry, the uncertainty surrounding the success of new game releases, and foreign exchange fluctuations.
Kakao Games exceeded Q1 2025 operating profit consensus by +29.5%. However, revenue decreased by 31.3%, and both operating and net income turned negative.
2. Why Did This Happen? Analyzing the Decline
Slowing mobile game performance and the launch of new PC games contributed to the shift in revenue structure. While PC game revenue increased, it wasn’t enough to offset the decline in mobile game revenue, their primary source. Discontinued operations in golf and wireless communication devices also played a role.
3. What’s Next? Future Outlook and Key Factors
While the earnings surprise may create short-term momentum, sustained growth will depend on fundamental improvements. Future performance hinges on new game releases, live service performance of existing games, marketing effectiveness, and improvements in financial health.
Key Factors: New game success, mobile game recovery, and improved financial health.
4. What Should Investors Do? Investment Strategies
Investors should look beyond short-term fluctuations and focus on long-term growth potential and core competencies. Carefully assess the company’s new game pipeline, IP strength, and global publishing capabilities before making investment decisions.
Investment Strategies: Maintain a long-term perspective, analyze core competencies, and consider macroeconomic conditions.
Q: How did Kakao Games perform in Q1 2025?
A: They posted a surprise earnings beat, but revenue declined and they reported operating and net losses.
Q: What caused the decline in performance?
A: Slowing mobile game performance, new PC game launch impact, and discontinued operations contributed to the decline.
Q: Should I invest in Kakao Games?
A: Consider the long-term growth potential and core competencies before making investment decisions, rather than focusing solely on short-term price fluctuations.
NCSOFT’s Q1 2025 earnings presented a mixed picture, with declining revenue but increasing net profit. Declining sales of flagship games and intensified market competition are cited as the main reasons for the revenue drop, although seasonal factors or strategic adjustments for new game releases are also possibilities. The increase in net profit is attributed to growth in non-operating income (financial income) and cost optimization efforts.
2. Throne and Liberty: A Critical Launch
The successful launch of ‘Throne and Liberty’ is key to NCSOFT’s earnings recovery. However, concerns remain that external factors such as a deteriorating global economic situation and rising logistics costs could impact the launch and overseas expansion.
3. Key IR Watch Points: Addressing Uncertainty
This IR is expected to provide explanations for the sluggish Q1 performance, details on the ‘Throne and Liberty’ launch strategy, and insights into future growth drivers such as the establishment of the Global R&D Center. Investors should pay attention to the possibility of reversing the declining revenue trend, the sustainability of non-operating income, and NCSOFT’s strategies for addressing macroeconomic risks like exchange rate fluctuations and interest rate hikes.
4. Investor Action Plan: Analyze IR Content and Market Reaction
Investors should review their investment strategies based on the IR content and subsequent market reactions, along with any further financial disclosures. The reversal of declining sales trends for existing games and the success of ‘Throne and Liberty’ are expected to significantly influence the future stock price. Careful analysis of provided stock data and the Q1 report is crucial for informed investment decisions.
Q: What will be announced at NCSOFT’s IR?
A: The 2025 business performance, ‘Throne and Liberty’ launch strategy, and plans for the Global R&D Center are expected to be announced.
Q: What caused NCSOFT’s sluggish Q1 performance?
A: Declining sales of flagship games and intensified market competition are considered the main factors.
Q: What should investors be aware of when investing in NCSOFT?
A: Investors should consider macroeconomic risks such as exchange rate fluctuations, interest rate hikes, and the deteriorating global economic situation, as well as the success of ‘Throne and Liberty.’
While Q1 earnings were weak due to seasonality and one-off costs, a rebound is expected in Q2. However, the Paxie Games acquisition is still in its early stages, and uncertainties surrounding the earn-out agreement remain. Investors should focus on the following:
Operating Margin Improvement: Profitability recovery will significantly impact the stock price.
Paxie Games Integration Progress: Look for concrete evidence of synergy effects from the acquisition.
Earn-out Agreement Details: Clear explanations regarding the remaining stake acquisition terms and plans are crucial.
2. The Paxie Games Acquisition: Impact and Risks
The Paxie Games acquisition is expected to be a long-term growth driver for DoubleU Games. However, short-term risks include integration challenges and uncertainty related to the earn-out agreement. The IR should address these concerns.
3. Macroeconomic Factors to Consider
Macroeconomic uncertainties such as rising interest rates, exchange rate fluctuations, and increasing bond yields can negatively impact investor sentiment towards gaming stocks. While DoubleU Games has no variable-rate debt, limiting the direct impact of interest rate hikes, the overall market sentiment should be considered.
4. Developing Your Investment Strategy
Carefully analyze the information presented during the IR to inform your investment decisions. Consider Q2 earnings, Paxie Games integration progress, earn-out agreement details, management’s future strategy, macroeconomic factors, and market conditions before making any investment decisions.
Frequently Asked Questions
When are DoubleU Games’ Q2 earnings being released?
August 13, 2025, at 10:00 AM KST.
How will the Paxie Games acquisition impact DoubleU Games?
It’s expected to be a long-term growth driver, but short-term challenges and uncertainties exist related to integration and the earn-out agreement.
What should investors be cautious about?
Carefully consider the IR information and macroeconomic conditions before making investment decisions.
The main points of interest in this IR are the continued success of RF Online Next, new game launch plans, the progress of the G-TOWN development project, and improvements in financial soundness. A key question is whether Netmarble can deliver performance that offsets the decline in Q1 sales.
2. Netmarble’s Fundamentals: A Mixed Bag
Positive Factors:
Continued success potential of RF Online Next
Diverse game lineup and IP acquisition strategy
Negative Factors:
High debt ratio and decrease in Jam City stake
Uncertainty surrounding the G-TOWN development project
Potential for increased game regulations
3. Market Analysis: Increased Volatility
External factors such as recent volatility in exchange rates, interest rates, and oil prices can also impact Netmarble’s performance. Risk management strategies considering these market conditions are necessary.
4. Investment Strategy: A Cautious Approach
Netmarble’s stock price is expected to be highly volatile following the IR results. Investors should carefully analyze the IR announcement, evaluating Netmarble’s growth strategy beyond RF Online Next, efforts to improve financial soundness, and risk management plans before making investment decisions.
Frequently Asked Questions
Q: When is Netmarble’s Q2 earnings announcement?
A: It is scheduled for August 7, 2025, at 4 PM KST.
Q: What are the key takeaways from this IR?
A: The continued success of RF Online Next, new game release plans, the G-TOWN development project, and improvements in financial health.
Q: What should investors be cautious of when investing in Netmarble?
A: Consider the high debt ratio, risks associated with the G-TOWN development project, and the possibility of increased game regulations.
Com2uS faces a crucial test with its Q2 earnings announcement on August 12th, needing to demonstrate recovery from Q1’s underperformance and its future growth potential. The following key points will be in the spotlight during this IR session:
Summoners War Revenue Recovery
New Game ‘Pro Baseball Rising’ Performance
Media/Content Sector Strategy
Management’s Future Outlook and Targets
2. Causes of Q1 Slump and Q2 Earnings Outlook
Com2uS struggled in Q1 due to declining sales of ‘Summoners War’ and sluggish performance in the media/content sector. Q2 earnings will be a crucial indicator of whether they’ve overcome these challenges and secured future growth drivers. Focus on the performance of new games like ‘Pro Baseball Rising’ and the announcement of new strategies for the media/content division.
3. Stock Price Direction and Investment Strategies
Whether Com2uS improves its Q2 earnings will significantly impact its stock price. Positive earnings and a promising outlook can drive stock prices up, but continued sluggish performance can increase downward pressure. Investors should carefully analyze the IR announcements and make prudent investment decisions, considering uncertainties in the macroeconomic and industry environment. External factors such as potential US interest rate hikes, exchange rate fluctuations, and the global economic slowdown should also be considered.
4. Investor Action Plan
It is crucial to carefully review the IR announcements and adjust your investment strategy by referring to expert analysis and market reactions. Instead of being swayed by short-term stock fluctuations, it is advisable to evaluate Com2uS’s long-term growth potential and make investment decisions accordingly.
Frequently Asked Questions
When is Com2uS’s Q2 earnings announcement?
It is scheduled for August 12, 2025, at 10:00 AM.
What were the main causes of Com2uS’s poor Q1 performance?
Declining sales of ‘Summoners War’ and the underperformance of the media/content division were the primary factors.
What precautions should investors take?
In addition to the IR announcement, investors should also consider macroeconomic factors such as US interest rates, exchange rates, and the global economic slowdown.
Shift Up announced an upcoming investor relations (IR) meeting on August 18, 2025. It will be held as a Non-Deal Roadshow (NDR) and Corporate Day, covering management updates and a Q&A session.
2. Why Does it Matter? Addressing Growth Concerns and Unveiling Future Plans
Following the success of Goddess of Victory: Nikke, Shift Up has faced challenges including slowing growth and the termination of Destiny Child. This IR presents a crucial opportunity to address market concerns and showcase future growth drivers such as China market entry, Stella Blade’s PC platform expansion, and new IP development.
Key Discussion Points
China market entry strategy and roadmap
Stella Blade PC platform expansion plans
New IP development status and future growth strategy
Goddess of Victory: Nikke revenue growth strategy
3. What’s the Potential Impact? Market Reactions and Investment Strategies
Market reactions to the IR could be positive or negative. Positive outcomes could drive stock price increases, while negative news could lead to declines. Current macroeconomic uncertainties should also be considered.
4. What Should Investors Do? Closely Monitor IR Outcomes and Market Response
Investors should closely monitor the information presented at the IR and the subsequent market response. Carefully analyze the specifics and feasibility of the China market entry strategy and new IP development plans, and assess the continued growth potential of Goddess of Victory: Nikke. Make investment decisions cautiously and develop a risk management strategy.
When is the Shift Up IR taking place?
It’s scheduled for August 18, 2025.
What will be discussed during the IR?
Key topics include their China market entry status, Stella Blade’s PC expansion plans, new IP development progress, and the revenue growth strategy for Goddess of Victory: Nikke.
What are Shift Up’s main games?
Their main titles include Goddess of Victory: Nikke and Stella Blade.
Kakao Games’ Critical Q2 Earnings Call: What’s at Stake?
On August 6, 2025, Kakao Games will hold its conference call (IR) to announce its Q2 results and outline its future business direction. This event is incredibly important as it offers a chance to address the market’s hopes and fears following the Q1 announcement and will set the tone for the stock’s future trajectory.
Why the Q2 IR is Crucial: Overcoming the Shadow of Q1
First, it’s essential to recall the Q1 performance. In Q1 2025, Kakao Games reported a consolidated revenue decrease and an operating loss, largely due to the discontinuation of its golf business and the sale of its wireless communications division. While this was a temporary impact aimed at improving financial structure, the sluggish performance of the PC games division also hindered growth.
However, there were positive signs, such as the solid performance of the mobile games division and efforts in overseas expansion. Therefore, this Q2 IR is a critical test to prove how much the core ‘gaming business’ competitiveness has strengthened and how robust the financial structure has become after shedding non-core assets.
4 Key Points to Watch in the August 6th IR
So, what should investors focus on during this IR? We’ve summarized the four key points.
1. Q2 Performance: The First Sign of a Rebound?
The most important factor is undoubtedly the Q2 results. Beating market expectations for revenue and operating profit is the first prerequisite for a stock rebound. The performance of the following items is particularly crucial:
PC Games Division: Has it recovered from the Q1 slump and returned to a growth trajectory?
Mobile Games Division: Did key titles like ‘Odin: Valhalla Rising,’ ‘ArcheAge War,’ and ‘R.O.M’ continue their strong performance?
Overseas Revenue: Has overseas market growth been demonstrated with concrete numbers?
2. Future Growth Strategy: What is the ‘Next Odin’?
The company must present a long-term growth vision that goes beyond short-term results. The market will critically assess the feasibility and competitiveness of its new game launch plans, specific overseas expansion strategies, and investment plans for future technologies (like AI).
3. Financial Health Improvement: The Results of Divesting Non-Core Assets
The effects of the business divestments must be shown in quantitative terms. Disclosing improved financial metrics like the debt-to-equity ratio and current ratio, along with a clear plan on how the proceeds will be utilized, is key to boosting investor confidence.
4. Risk Management: Navigating Regulation and Competition
The company must present specific countermeasures for unavoidable risks such as intensifying competition in the gaming market and regulations on probability-based items. Explaining the impact of macroeconomic variables like interest rates and currency fluctuations, and their corresponding contingency plans, can reduce uncertainty for investors.
Investor Action Plan: Analyzing Kakao Games Stock Scenarios
Depending on the IR results, Kakao Games’ stock is likely to experience significant short-term volatility. Investors should prepare a strategy considering the following two scenarios:
📈 Bullish Scenario: If Q2 results exceed market consensus and a concrete, convincing future growth strategy is presented, the stock is likely to gain upward momentum.
📉 Bearish Scenario: If the poor performance continues or the growth plan fails to meet market expectations, increasing uncertainty, the downward pressure on the stock could intensify.
Therefore, investors should meticulously analyze the IR presentation and closely monitor market reactions, especially trading trends among foreign investors. It is also advisable to consider macroeconomic indicators such as U.S. and South Korean government bond yields and benchmark interest rates to make a comprehensive investment decision.
Q1. When exactly is the Kakao Games Q2 earnings call (IR)?
A1. Kakao Games’ Q2 2025 earnings conference call (IR) is scheduled for Wednesday, August 6, 2025, at 9:00 AM Korea Standard Time (KST).
Q2. What are the most critical points for investors to watch in this Kakao Games IR?
A2. The most critical points are: 1) The rebound in Q2 earnings, especially the recovery of the PC games division and mobile game performance. Additionally, watch for 2) the specificity of their future growth strategy, 3) the proven effects of financial restructuring, and 4) their risk management plan for issues like gacha game regulations.
Q3. What will happen to Kakao Games’ stock price after the IR?
A3. The stock’s direction will be determined by the IR’s content. A stock price increase is expected if Q2 results beat expectations and the growth vision is positive. Conversely, it could fall if results disappoint. High short-term volatility is expected, so a cautious approach is necessary.
Q4. What are the biggest risks currently facing Kakao Games?
A4. There are two main risks. First, intensifying competition in the domestic and international gaming markets and the potential for new titles to underperform. Second, regulatory risks, such as the mandatory disclosure of information on probability-based items. It’s crucial to see how they address these risks in the IR.
NCSoft will officially announce its Q2 2025 results through an investor relations (IR) conference call on August 12, 2025, at 9:00 AM KST. The event will cover the Q2 business performance and include a Q&A session, from which the market will be eager to glean specific hints about the company’s current standing and future strategies.
2. Why Does It Matter? A Crossroads of ‘Hope and Concern’
This earnings call is particularly significant due to NCSoft’s current situation. The stock has been on a downward trend, a result of several complex factors.
📉 Declining Revenue from Legacy IPs: Core franchises like the ‘Lineage’ series have entered a mature phase of their lifecycle, facing natural revenue decline and intensified market competition. The previous Q3 report already confirmed a decrease in sales and operating profit.
📈 Underlying Issues Masked by FX Gains: While the last quarter showed an increase in net profit thanks to favorable currency effects and returns from affiliate investments, there are concerns this may be masking a decline in the core business’s competitiveness.
🤔 Uncertainty in Future Growth Engines: Ultimately, regaining market trust and sparking a stock rebound hinges on the success of major new titles like ‘Aion 2’, ‘LLL’, and ‘Throne and Liberty’. The biggest question is whether positive signals about these new games will emerge from this announcement.
3. So, What’s Next? Stock Price Scenarios
The stock could see significant short-term volatility depending on the announcement. We can break down the possibilities into positive and negative scenarios.
Positive Scenario: The Rebound Signal
👍 Earnings Surprise: If the results beat market expectations, especially if driven by effective cost control or a successful currency management strategy.
🚀 Concrete New Game Momentum: The most powerful catalyst for a stock price rally would be positive news on the development progress of ‘Aion 2’ or ‘LLL’, accompanied by a concrete release roadmap.
Negative Scenario: Increased Downward Pressure
👎 Earnings Shock: Disappointing Q2 results that fall below market consensus could rapidly cool investor sentiment.
🐢 New Game Delays: News of delays or development setbacks for highly anticipated new titles would be the biggest blow, fueling doubts about future growth and acting as a major negative catalyst.
📊 Macroeconomic Headwinds: An unfavorable macroeconomic environment, including persistently high interest rates and volatile exchange rates, could amplify the stock’s decline in conjunction with poor results.
4. Investor’s Action Plan: What to Look For
A savvy investor shouldn’t just look at the headline revenue and profit numbers. You must check the following key points:
1. New Game Pipeline Check: During the Q&A, look for specific answers on the development stage, internal test results, and estimated launch windows for new titles like ‘Aion 2’ and ‘LLL’. It’s crucial to gauge the management’s confidence and vision.
2. Legacy Game Defense Strategy: Check for plans on updates and events aimed at defending the revenue streams of the ‘Lineage’ IP.
3. Cost Efficiency and Profitability: Examine how the company is improving profitability through cost control measures, such as managing marketing expenses and personnel costs.
4. Overseas Business and FX Impact: Analyze the impact of Q2 currency fluctuations on overseas sales and the effectiveness of the company’s hedging strategies.
In conclusion, NCSoft’s Q2 earnings announcement is a critical opportunity to assess not only its short-term performance but also its long-term growth roadmap. With information on new games being the key variable that will determine the stock’s direction, a careful analysis of the announcement is essential for making a prudent investment decision.
Q. When is NCSoft’s Q2 2025 earnings release date?
A. It is scheduled to be announced via an investor relations (IR) conference call on Tuesday, August 12, 2025, at 9:00 AM Korea Standard Time.
Q. Why has NCSoft’s stock price been underperforming recently?
A. A combination of factors is exerting downward pressure, including declining revenue from its flagship ‘Lineage’ series, intense market competition, and uncertainty surrounding the release schedule of anticipated new titles like ‘Aion 2’ and ‘LLL’.
Q. What should investors focus on most in this earnings announcement?
A. While the Q2 financial figures are important, the most critical point to watch is the development progress and specific launch plans for new games (‘Aion 2’, ‘LLL’, etc.) that will drive future growth. Pay close attention to related information from the Q&A session.
Q. What are NCSoft’s major upcoming new games?
A. The most anticipated new titles from the market’s perspective include the PC/console MMORPG ‘Aion 2’, the looter shooter ‘LLL’, and ‘Throne and Liberty’, which is currently in global service.