While the broader gaming sector continues its sluggish performance, select major gaming companies are rebounding on the strength of solid earnings and new title anticipation. Krafton and NC in particular are seeing sharp stock recoveries driven by robust performance from their core intellectual properties (IPs).
NC(left), Krafton logos. / Courtesy of respective companies
According to industry sources on May 6, Krafton's share price has been trending upward recently. After hitting this year's low of 208,500 won on March 4, Krafton's stock price surged approximately 37% to reach 284,500 won as of May 6. This upward momentum is interpreted as the result of improved earnings performance.
Krafton achieved its highest-ever quarterly revenue in Q1, with its flagship PUBG IP franchise revenue surpassing 1 trillion won. Anticipation for new titles has also been reflected in the stock price. The new title "Subnautica 2," which faced concerns over launch delays due to litigation issues, has resolved uncertainties with its early access release scheduled for May 15. The game has been building anticipation by ranking No. 1 on Steam's wishlist for 34 consecutive weeks. Securities firms expect sales of approximately 5 million copies in Q2 alone.
NC has also joined the rebound trend. NC's share price has recovered to the 260,000 won range, rising more than 24% since April 7. This reflects expectations for major new titles including "Lineage Classic" and "Aion 2" translating into improved earnings forecasts. The market estimates NC's Q1 revenue at 518.1 billion won and operating profit at 93 billion won—increases of 43% and 1,681%, respectively, compared to the same period last year.
While securities firms evaluate both companies' stock trends positively, they believe future valuation improvements depend on proving the quality of new titles. Krafton is accelerating its "post-PUBG" strategy centered on overseas development subsidiaries. The early access launch of "Subnautica 2" from U.S.-based developer Unknown Worlds is imminent, while the Montreal studio is developing the triple-A title "Project Windless."
Kim Jin-gu, researcher at Kiwoom Securities, assessed: "Krafton is demonstrating its IP diversification commitment to the market by disclosing development progress on Project Windless this year." He continued: "This new title needs to be sequentially validated for content completeness, optimization levels, and potential entry into the triple-A segment. If positive results are confirmed, it will also work favorably for valuation multiples."
NC is expected to expand its Western market revenue share alongside mobile casual business expansion results. NC recently completed establishment of its subsidiary "ValoPlay," which will serve as a European casual studio hub, completing business preparations. Securities firms project this business will generate over 550 billion won in revenue this year. Additionally, NC is expected to expand overseas revenue through this summer's mobile version release of "Guild Wars Reforged" and the second-half global launch of "Aion 2."
Nam Hyo-ji, researcher at SK Securities, evaluated NC: "Beyond stable performance from existing titles, the company has secured earnings upside through new titles and genre diversification." Kim Dong-woo, researcher at Kyobo Securities, analyzed: "Entry into casual gaming through acquisitions of Riiid, Spring Comes, and JustPlay marks entry into a phase of breaking away from the previous structure where profit volatility was high depending on a few large new title performances."
댓글
0