[EQUITIES] Neowiz Games’ earnings to fall in Q3: Ebest Investment

[THE INVESTOR] Ebest Investment & Securities anticipated that online game developer Neowiz Games’ earnings in the July-September period would miss previous market estimates, due to decreased profits in its global business.

The investment firm said in its latest report that the firm’s third-quarter operating profit would come in at 4.9 billion won (US$4.47 million), down 9.8 percent from last year with its revenue standing at 46.8 billion won, down 53.1 percent from a year ago.

Its quarterly sales for the domestic and global business is expected to drop 2.1 percent and 17.1 percent, respectively, according to Ebest Securities.

The sales drop in the local market was mainly due to its faltering PC game business. 

The investment firm said the decrease in royalty fees for CrossFire, a first-person shooter, in China and Taiwan was an attributing factor for the sales drop in the overseas market.

“Neowiz Games’ newly released games, including the ‘Sound of Your Heart,’ ‘Slugger Mobile,’ ‘Devil Breaker’ and ‘Rio 2016 Olympics,’ failed to make it in the second and third quarter,” said Seong Jong-hwa, an analyst from the investment firm, adding the firm has great potential to create growth momentum through its new games to be launched in Korea and global markets.

By Kim Young-won (wone0102@heraldcorp.com)