“We estimate Blade & Soul US (launched in January) generated more than W20bn in new revenue, and believe revenue from all of the company’s cash cow titles (Lineage I, Lineage II, Aion, Blade & Soul, and Guild Wars 2) also remained solid in the quarter. Earnings were likely further supported by lower expenses, with both special items (e.g., professional baseball team contracts) and marketing spend declining QoQ.”
Daewoo believes that the Lineage Eternal beta tests this quarter are “unlikely to have a meaningful impact” on the value of the company’s stock and thinks the next few months will see little by way of releases from the company.
“We expect an absence of new releases in May and June, but think this factor is already priced in. In our view, May and June could be seen as an opportune time to buy the stock in anticipation of the positive momentum ahead. We reiterate our Buy rating on NCSOFT with a target price of W420,000.”