[Featured Stock] Mgame Benefits from China's Ban Lift and Untact Trend... Profit Surges Due to Popularity of Yeolhyeol Gangho

[Asia Economy Reporter Hyungsoo Park] As expectations grow for the lifting of China’s Hanhanryeong (Korean Wave ban), Mgame’s stock price is also on the rise.

At 9:33 a.m. on the 6th, Mgame was trading at 5,550 KRW, up 14.43% compared to the previous trading day.

Recently, news that the Chinese government is formalizing the lifting of the ban on the sale of Korean group tour packages has drawn attention to Chinese consumer-related stocks.

Mgame achieved solid results in the first quarter of this year. In Q1, it recorded sales of 10.2 billion KRW, operating profit of 2.5 billion KRW, and net profit of 2.7 billion KRW. Compared to the same period last year, sales increased by 5.6%, while operating profit and net profit rose by 49.3% and 35.9%, respectively.

An Mgame official explained, "The popularity of PC online games overseas led to the sales increase in Q1," adding, "China’s ‘Yeolhyeolgangho Online’ saw a significant rise in sales and concurrent users through the Singles’ Day event in November last year and the Lunar New Year event in January this year."

‘Knight Online’ is popular in the United States and Turkey. Its average monthly sales in Q1 this year surpassed last year’s monthly average sales, maintaining steady popularity.

Domestic sales of existing PC online games such as ‘Knight Online’, ‘Yeolhyeolgangho Online’, ‘Gwihon’, and ‘Hero Online’ also increased compared to the same period last year.

Preparations for publishing services within the year are also underway. The mobile MMORPG ‘Jin Yeolhyeolgangho’, Mgame’s most anticipated title that succeeds ‘Yeolhyeolgangho Online’, is also set to be released soon, along with the discovery of new mobile games.

Kwon Yi-hyung, CEO of Mgame, said, “As non-face-to-face (untact) becomes the norm, we are seeing good results both domestically and overseas,” adding, “While maintaining sales growth through updates of our flagship online games at home and abroad, we will focus on securing new lineups and overseas publishing contracts.”

Research and development related to blockchain games is ongoing. They plan to release the idle role-playing games (RPGs) ‘Gwihon for Klaytn’ and ‘Princess Maker for Klaytn’, which are being developed based on Kakao’s blockchain platform, Klaytn.