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The The author is a analyst for Shinhan Securities. He You can reach us at sokang@shinhan.com Ed.


4Q23 review: New Game and profitability disappoint


NCsoft’s operating profit for the 4Q23 period was KRW3.9bn, which is a far cry from the KRW13.1bn consensus estimate. Weak Market response to the December-released Throne The following are some examples of how to get started: Liberty In 4Q23, the contribution of earnings was limited. We The QoQ increase in sales is attributed to existing title updates, not a new game release. MeanwhileThe marketing budget was less than 10% despite the launch and participation in G-Star The cost of labor and event in 2023 remained largely unchanged. During NCsoft announced dividend payments of KRW3,130 for each share (KRW63.6bn total), a 1.3% dividend yield.


Growth The potential of new games is limited until 2024


Adding In spite of the poor performance, Throne The following are some examples of how to get started: Liberty The film has been released in the United States since December The outlook for the next three titles does not look promising in terms of sales growth (2019).Blade & Soul S, Battle Crush. Project G) due for release in the year 2024. Amid NCsoft’s new games may lack a clearly defined positioning strategy, given the polarization between casual games that can be handled easily and AAA-grade games with a story/IP focus. Amazon Games The rights to publish the book in other countries have been secured Throne The following are some examples of how to get started: LibertyBut the game is likely to need major upgrades in content to attract users at launch.


Maintain HOLD Rating


We NCsoft’s HOLD rating is maintained. The Company falls short of peers when it comes to new releases compared with top-line earnings. But investors are patiently waiting, given the high success rates of past games and their large sales. HoweverThe failure to expand beyond the Lineage IP and negative comments for Throne The following are some examples of how to get started: Liberty Massive investment has led to a decline in earnings and stock valuations. In According to our opinion, NCsoft’s inability to meet the needs of users by providing items, skins and content for games is the main reason why sales have not increased significantly. ThusWe have low expectations of the performance of the game in overseas markets. The Recent global success of Lost Ark Its entertainment value, its quality, and its operational capabilities are much more important than the publishing capability of Amazon Games. In To regain investor confidence, NCsoft needs to make efforts in the following areas: 1) release more games or increase their number; 2) improve management of its workforce; and 3) grow overseas sales.

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