[Into the Stocks] Devsisters Runs Again... Now Toward the World

DevSisters Stock Soars 162% in a Month
Another Rally Since Early Year on Overseas Success Hopes for 'Cookie Run: Kingdom'
Growth Expected as Global IP... Genre and Platform Diversification

[Asia Economy Reporter Minwoo Lee] Devsisters' stock price has been rallying once again since the beginning of the year. Although the company struggled with 19 consecutive quarters of losses following the initial success of the original 'Cookie Run,' the massive success of the Cookie Run sequel has established it as an intellectual property (IP) that resonates in the global market.

According to the Korea Exchange on the 24th, Devsisters' stock closed at 177,200 KRW on the KOSDAQ market the previous day. Compared to the closing price of 67,500 KRW exactly one month ago on the 23rd of last month, this represents a surge of approximately 162.5%. This far outpaces the KOSDAQ index's 4.3% increase over the same period. Following a 769.3% surge in closing price from January 19 to March 25 due to the success of 'Cookie Run: Kingdom' at the start of the year, another rally is now underway.

In the US and Japan... 'Cookie Run' Running Worldwide

The recent upward trend is attributed to the effect of new content updates for 'Cookie Run: Kingdom.' Based on the Apple App Store, the game ranked 3rd in popularity in the US the day before. Its revenue ranking jumped from 389th on the 25th of last month to 29th. In Canada, the revenue ranking soared from 341st on the 23rd of last month to 24th. Changyoung Lee, a researcher at Yuanta Securities, explained, "Despite no marketing efforts in the US and Canada similar to Japan, the number of users surged after the update, leading to increased revenue. Marketing in the US will begin in earnest from the 8th of next month, and the current trend of rising user numbers and revenue is expected to continue."

The game is also maintaining its success in Japan. Based on Google Play the previous day, it ranked 2nd in popularity and 75th in revenue. Although there is a large gap between popularity and revenue rankings, new users have been steadily increasing after marketing efforts, so revenue rankings and revenue are expected to rise.

Release in China is also forthcoming. On the 14th, a publishing contract was signed with a local Chinese company, and they are currently awaiting the issuance of a game license (approval for game service in China). The researcher predicted, "Given the recent favorable atmosphere for issuing game licenses to Korean games and the fact that this is a new genre not previously serviced on Chinese mobile platforms, the possibility of license issuance is positive."

Focusing on Cookie Run... Rising Expectations for Global IP

Devsisters, which has focused solely on 'Cookie Run,' is beginning to shine. Devsisters first released 'Cookie Run for Kakao' in April 2013. Until 2012, the company was on the verge of closure but was relieved by the success of Cookie Run. After entering overseas markets with 'LINE Cookie Run' in 2014, it began direct service in 2016. However, it recorded 19 consecutive quarters of losses over five years until 2019.

Despite the bleak situation, the focus on Cookie Run has started to pay off. Following the success of 'Cookie Run: OvenBreak' and the consecutive hits of 'Cookie Run: Kingdom' released earlier this year, the company is experiencing rapid growth. The securities industry expects Devsisters to return to profitability for the first time in five years this year, with operating profit reaching 90 billion KRW. Further growth is anticipated next year. According to financial information analysis firm FnGuide, the consensus forecast for Devsisters' consolidated performance next year is 435.1 billion KRW in sales and 119.7 billion KRW in operating profit, representing increases of 9.28% and 33.15%, respectively, compared to this year's estimates.

As the company grows in scale, it has also built the stamina to sustain future success. In the past, there were long gaps between new releases, but now it has secured two cash-generating titles and established multiple development studios capable of simultaneously developing several new games. Devsisters plans to release the block-based sandbox game 'Brick City' this year, and in the second half of next year, casual action game 'Cookie Run: OvenSmash' and gun-shooting game 'Safe House,' among others. They intend to diversify genres and expand platforms using the 'Cookie Run' IP.

Sukoh Kang, a researcher at Heungkuk Securities, said, "Devsisters will not only record the highest-ever operating profit but also achieve an operating margin of about 20% as it returns to profitability for the first time in five years this year. In the second half of the year, overseas marketing for 'Cookie Run: Kingdom' and new releases such as 'OvenSmash' and 'Safe House' from 2022 will continue to drive external growth."