[Click eStock] "Gamevil, Q3 Earnings Pause... Q4 Rebound Expected"

[Asia Economy Reporter Park Jihwan] Ebest Investment & Securities stated on the 21st that Gamevil's Q3 performance this year is expected to undergo a pause before rebounding from Q4, maintaining a 'Buy' investment rating while lowering the target price by 8% from 48,000 KRW to 44,000 KRW.

Researcher Seong Jonghwa of Ebest Investment & Securities explained, "The Pro Baseball 2020 Superstars Global, launched last August, recorded daily sales exceeding 100 million KRW from late August to mid-September, and maintained daily sales above 50 million KRW even after late September, demonstrating a modest hit at a meaningful level." He anticipated that daily sales of around 100 million KRW would be sustained during October and November, as the professional baseball post-season continues in Japan, the United States, Korea, and Taiwan.

Q3 performance is expected to experience a pause. A significant slowdown compared to the previous quarter is forecasted. Researcher Seong stated, "Although the modest hit of Pro Baseball 2020 Superstars Global will significantly increase sales in the sports genre, overall sales are expected to slightly decrease compared to the previous quarter due to the downward stabilization of other existing games and the base effect from the previous quarter's one-time surge in overseas subsidiary sales." Additionally, operating profit is expected to turn slightly negative compared to the previous quarter due to increased operating expenses such as related marketing costs.

However, Q4 performance is expected to rebound. He evaluated, "The full three-month reflection of Pro Baseball 2020 Superstars Global, new sales contributions from Project CARS Go launching in five countries and Arcana Tactics Global scheduled for November, and stabilization of marketing expenses are expected to drive the rebound."