[IPO] T3 Entertainment Listed on KOSDAQ... "Expanding Business Area with Audition IP"

Hong Min-gyun, CEO of T3 Entertainment.

[Asia Economy Reporter Jang Hyowon] Game software developer T3 Entertainment is going public on the KOSDAQ. After listing, T3 Entertainment plans to expand its business area based on the Audition IP (intellectual property).

On the 31st, Hong Mingyun, CEO of T3 Entertainment, held an online press conference and stated, “Based on the traditional Audition IP (intellectual property), we are continuously growing as a leading domestic game company in the global market,” adding, “We will expand our business area through the core IP resources and technological competitiveness accumulated over about 20 years.”

Founded in 2000, T3 Entertainment is a specialized game developer that has built solid technological capabilities by developing games across various genres from PC to mobile. The company has released games utilizing virtual reality (VR) and augmented reality (AR) through its own research institute, securing numerous related technologies and continuously strengthening its technological capabilities. Approximately 70% of T3 Entertainment’s workforce is engaged in research and development.

The company’s flagship title is the rhythm dance game “Audition.” T3 Entertainment developed Audition in 2004 and has been stably servicing it in 37 countries worldwide for 18 years. As a result, the company has not only accumulated game operation know-how but also secured local publishing networks such as China’s “Nineyou” and “NetEase,” and Vietnam’s “VTC.”

Since its development, Audition has achieved a global cumulative revenue of 1.5 trillion KRW and over 700 million cumulative registered users, making it T3 Entertainment’s representative work. Following the success of Audition, the company has released various versions of the game using the IP, including “Club Audition.”

Performance growth is also smooth. T3 Entertainment’s consolidated results for last year showed operating revenue of 68.666 billion KRW, operating profit of 9.129 billion KRW, and net profit of 10.16 billion KRW, representing increases of 15.5%, 174.6%, and 692.8% respectively compared to the same period last year. In particular, operating revenue and operating profit achieved a compound annual growth rate (CAGR) of 26% and 40% respectively from 2019 to last year, showing significant growth.

The strong trend has continued into the first half of this year. T3 Entertainment’s consolidated results for the first half of this year recorded operating revenue of 35.656 billion KRW, operating profit of 7.772 billion KRW, and net profit of 9.23 billion KRW, representing increases of 10.9%, 42.8%, and 69.1% respectively compared to the same period last year.

T3 Entertainment holds subsidiaries HanbitSoft (30.69% stake) and HanbitDrone (46.30% stake). HanbitSoft is a KOSDAQ-listed company engaged in software development and supply, offering games such as “Granado Espada” and “Aika.” HanbitDrone is an official partner of Chinese drone manufacturer DJI and distributes and sells drones suitable for various fields including consumer, enterprise, agriculture, and education.

T3 Entertainment plans to expand its business area by leveraging its accumulated technological capabilities and the Audition IP. CEO Hong Mingyun said, “So far, we have developed games across various genres and platforms including augmented reality, virtual reality, MMORPG, MORPG, strategy simulation, casual, RTS, and TPS, building technological capabilities and know-how,” adding, “In addition, through regular updates, the company has secured about 80,000 self-developed Audition IP resources such as avatars, faces, costumes, accessories, and emoticons, and is developing a new metaverse-style game ‘Audition Life.’” Audition Life is targeted for release as early as the second half of next year.

Meanwhile, the total number of shares offered by T3 Entertainment is 17 million, with a desired public offering price of 1,500 to 1,700 KRW per share. The company plans to raise approximately 28.9 billion KRW through this offering. The proceeds will be used for game development costs to expand the new game lineup and new country services, as well as marketing expenses. Institutional investor demand forecasting is scheduled for November 1 to 2, and general subscription from the 7th to the 8th. The lead underwriter is Mirae Asset Securities.