From 'Disney Pop Town' to 'Anipang 4'... The Advancing SundayToz

[Asia Economy Reporter Minwoo Lee] SundayToz's 'Disney Pop Town,' released in the fourth quarter of last year, is sailing smoothly and is establishing itself as a stable source of revenue, according to an analysis. With a new installment of the popular 'Anipang' series scheduled for release in the first half of this year, strong performance is expected.

On the 22nd, Hyundai Motor Securities gave SundayToz a 'Buy' rating with a target price of 25,000 KRW. The somewhat sluggish performance in the fourth quarter of last year was due to marketing expenses related to the new release, but from this year onward, significant earnings growth is expected.

SundayToz recorded an operating loss of 1.8 billion KRW in the fourth quarter of last year. However, this was due to increased marketing costs in Japan for the new game 'Disney Pop Town,' released in October last year. The full-year results showed sales of 84.4 billion KRW and operating profit of 2.7 billion KRW.

Choi Jin-sung, a researcher at Hyundai Motor Securities, explained, "So far, the average daily sales ranking of 'Disney Pop Town' in Japan for the first quarter is around 90th place, which is not much different from the 83rd place with daily sales of 90 million KRW in the fourth quarter of last year. The sales ranking and daily active user (DAU) indicators are stable, so it is expected to maintain a stable profit base this year."

The release of a new Anipang series game is also a positive factor. 'Anipang 4' is scheduled to be released domestically in the first half of this year and will be launched overseas in combination with other popular overseas intellectual properties (IPs). Since 'Anipang 3' is estimated to have achieved daily sales of 90 million KRW at launch, it is predicted that 'Anipang 4' will record daily sales of at least 60 million KRW. Researcher Choi said, "In the second half of the year, new games utilizing Cartoon Network IP and a global IP game worth 1.5 trillion KRW are planned for release. Along with the success of Disney Pop Town and the launch of Anipang 4, the growth of high-margin advertising revenue is also expected to continue."