[Asia Economy Reporter Yoo Hyun-seok] Kakao Games is expected to improve its performance this year through various achievements.
According to the financial investment industry on the 12th, Kakao Games recorded consolidated sales of 142 billion KRW and operating profit of 16.6 billion KRW in the fourth quarter of last year. This represents a decrease of 5.6% and 21.9%, respectively, compared to the previous quarter.
Seong Jong-hwa, a researcher at Ebest Investment & Securities, said, "This was expected due to the downward setup pattern in the second quarter of Guardian Tales," adding, "The operating results for the fourth quarter of last year slightly missed previous forecasts but were generally in line."
The securities industry analyzes that attention should be focused on the possibility of performance improvement this year rather than the fourth quarter results of last year. The reason is the emergence of games that will drive performance improvement. First, it is explained that the global launch of Elion, the release of Odin, and the reflected sales of Eternal Return will be included.
According to FnGuide, securities firms estimate Kakao Games' sales and operating profit for this year to be 685.1 billion KRW and 122.5 billion KRW, respectively. This is an increase of 38.26% and 84.07% compared to the previous year.
Researcher Seong said, "The key point of the fourth quarter conference call last year was not the performance but that many factors were found that could significantly raise the performance outlook since 2021, such as upward revisions of the global outlook for 'Elion,' upward revisions of the outlook for 'Odin,' and the new reflection of sales estimates for Eternal Return: Black Survival."
Yoon Eul-jung, a researcher at Shin Young Securities, also explained, "More than 10 new games were scheduled to be released in 2021," adding, "In addition, global services for already released games such as Moonlight Sculptor in the second quarter and Elion in the fourth quarter are planned, so performance growth is expected accordingly."
In particular, there is also a forecast that Kakao Games' revaluation is possible depending on the success of new games. Kim Dong-hee, a researcher at Meritz Securities, emphasized, "Depending on the performance of 'Odin' in the second quarter and 'Eternal Return' and 'Elion' in the second half, it is possible to re-evaluate performance forecasts and corporate value."
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