[Click eStock] "Com2uS, Expecting Value Recovery by Focusing on Core Gaming Business"

Market Cap Declined but Solid Financial Assets
Q2 Separate Sales Expected to Increase, New Lineup Expansion
High-Intensity Restructuring of Subsidiary Following 'M&A Failure'

On the 23rd, Samsung Securities analyzed that Com2uS is focusing on its core gaming business and is undergoing efforts to restore corporate value. They maintained a 'Buy' investment rating and a target price of 52,000 KRW.

Odonghwan, a researcher at Samsung Securities, stated, "Com2uS's market capitalization has fallen below 500 billion KRW due to consecutive failures of new game launches and poor merger and acquisition (M&A) investment decisions. However, it holds financial assets exceeding 700 billion KRW, and since the appointment of CEO Nam Jaegwan, formerly of Kakao, the company has been implementing intensive subsidiary restructuring and securing a new game lineup as part of its improvement efforts."

Com2uS's standalone sales in the second quarter are expected to increase by 24% compared to the previous quarter, driven by the Summoners War 10th anniversary promotion, the professional baseball season effect, and the launch of Starseed. However, due to weak video content sales at its subsidiary Wysiwyg Studios, subsidiary sales are expected to decline by 8%, resulting in an overall sales increase of only 18%. Operating profit is anticipated to remain at the breakeven level of 600 million KRW due to expanded subsidiary losses and increased game marketing expenses.

Researcher Oh said, "Com2uS is expanding its external publishing lineup alongside in-house new game development. In July alone, it signed publishing contracts for three titles: Gods&Demons (idle RPG), Project M (MORPG), and Project Siren (simulation nurturing)." Accordingly, more than seven new titles, including BTS Cooking On starting in August, Frostpunk, and Pro Baseball Rising, are scheduled for release. In particular, Pro Baseball Rising, which secured the Japanese NPB license, is expected to be the key to Com2uS's game revenue rebound in 2025.

Last year in the fourth quarter, Com2uS conducted large-scale restructuring of subsidiaries such as Wysiwyg Studios and Com2Verse, reducing subsidiary personnel by more than 70% to minimize losses. Although the long-term growth prospects of media businesses like Wysiwyg Studios and MyMusicTaste are not bright, losses are expected to shrink in the second half through expanded drama scheduling. Additionally, the personnel reallocation related to Com2Verse has been completed, and most operating losses are expected to be eliminated from the second half onward.