Nomus, which plunged 35% on the day of listing, rebounds after Q3 earnings release

Listed on November 12 at an offering price of 30,200 KRW
Closed trading at 19,400 KRW, down 35.8% on the first day
Q3 sales increased 180% year-on-year

Nomus, which entered the KOSDAQ market on the 12th of last month and experienced a drop of more than 30% compared to its IPO price on the same day, has recently been rebounding rapidly. This appears to be due to alleviating concerns about growth by releasing its third-quarter earnings for this year. With the rising popularity of K-pop, expectations for Nomus's performance improvement, which creates added value by utilizing artist intellectual property (IP), are also increasing.

According to the financial investment industry on the 4th, Nomus's stock price rose 41% over four trading days starting from the 28th of last month.

Nomus entered the KOSDAQ market with an IPO price of 30,200 KRW but closed at 19,400 KRW on the listing day. The stock price steadily declined and fell to as low as 14,620 KRW during trading on the 20th of last month. The stock price began to rebound after releasing its third-quarter earnings on the 28th of last month.

In the third quarter, on a consolidated basis, Nomus recorded sales of 26.4 billion KRW and an operating profit of 3.7 billion KRW. Sales increased by 180% compared to the same period last year, and operating profit turned positive. For the cumulative third quarter, sales reached 54.1 billion KRW, and operating profit was 6.8 billion KRW.

The core of Nomus's business lies in expanding entertainment services through artist IP. It possesses various products that can maximize profits in the entertainment sector. These include planning domestic and overseas performances for K-pop artists, providing private messaging services where fans can have one-on-one conversations with artists, stores where albums and merchandise can be purchased, fandom communities, and memberships. Nomus operates artist IP platforms such as Wonderwall and fromm.

Daehyung Cho, a researcher at DS Investment & Securities, explained, "Through a local promoter network, we predict performance demand in advance to select an appropriately sized venue, minimizing risks associated with overseas tours." He added, "The fandom database (DB) secured through performance planning is utilized for product planning and production. As the number of artists and small to medium-sized agencies becoming independent after contract periods increases, collaboration with Nomus is expected to grow."

The trend of improving Nomus's performance is expected to continue for the time being. ‘Fromm,’ launched based on the artist IP service know-how secured by Nomus, is growing rapidly. Fromm provides a single app that includes ▲‘Fromm Message,’ where artists and fans can communicate privately, ▲‘Fromm Store,’ where fans can purchase artists’ content, albums, fan events, and concert tickets, ▲‘Fromm Channel,’ a public communication space for artists and fans, ▲and ‘Fromm Membership,’ a fan club service offering exclusive benefits.

A Nomus representative said, "Of last year's sales of 42.3 billion KRW, 20.9 billion KRW was recorded overseas, showing strength in international markets," adding, "As the expansion of K-pop artists' IP is progressing smoothly, we expect a 'lock-in' effect through Fromm."

The number of Fromm subscribers, currently estimated at around 250,000, is expected to increase to about 300,000 by the end of the year as additional IPs are secured. Additional services such as private video messages are also being prepared. DS Investment & Securities estimates that Nomus will achieve sales of 114 billion KRW and operating profit of 31.7 billion KRW next year, representing increases of 63.5% and 177.2%, respectively, compared to this year's estimates.