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Photo=Kakao Games |
[Alpha Biz= Paul Lee] Kakao Games hit a new 52-week low as investor sentiment weakened following analysts’ projections of continued losses in the first half of the year.
As of 9:44 a.m. today, according to MP Doctor, Kakao Games' shares were trading at KRW 13,770, down 1.36% (KRW 190) from the previous session. During intraday trading, the stock fell as low as KRW 13,710, marking its lowest point in a year.
NH Investment & Securities forecasted that Kakao Games' Q1 revenue would drop 31.9% year-on-year to KRW 121.5 billion, with an operating loss of KRW 5.3 billion. The decline is attributed to waning revenues from aging titles such as ArcheAge War and Uma Musume Pretty Derby.
The brokerage noted that while the company is shifting focus to its core gaming business by winding down non-core subsidiaries like Kakao VX and Senna Technology, this increases the pressure on upcoming new releases to perform well. Recovery in performance is expected only after the launch of new games in the third quarter or later.
“Due to the underperformance of new games, an operating loss in the first half of the year appears inevitable,” NH Investment & Securities said. “The company’s financial recovery and potential stock rebound will likely hinge on the success of new titles slated for release in the latter half of 2025.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
