Value of Global IPs Acknowledged

The author is an analyst of NH Investment & Securities. He can be reached at jaemin.ahn@nhqv.com. -- Ed.

 

Com2uS’s Summoners War sales are continuing to display robust growth, and the value of its global IPs have been acknowledged. Accordingly, anticipation should strengthen further towards the release of Summoners War: Lost Centuria as the title’s Feb 2021 release date approaches.

Summoners War continues to deliver solid sales; value of IPs to again be highlighted in 2021

We adhere to a Buy rating and a TP of W165,000 on Com2uS. Given tentative confirmation of the planned release schedules for both Summoners War: Lost Centuria (Feb 2021) and Summoners War: Chronicle (2Q21), anticipation should strengthen further towards the new titles as their release dates approach.

Evidencing the power of its Summoner War IPs, the firm enjoyed its best-ever quarterly sales for Summoners War in 2Q20. Given such, the two new Summoners War-based titles to be launched in 1H21 should be the firm’s main momentum drivers in 2H20.

Of note, earlier release plans for Summoners War: Lost Centuria have been delayed by around two months. However, we believe that a planned marketing campaign for the new game will provide positive share price momentum, noting that the campaign is scheduled to kick off in time for the SWC2020 final, a high-profile Summoners War e-sports event slated for this upcoming November.

Representing the first MMORPG to be developed by Com2uS, Summoners War: Chronicle is to be released in 2Q20. Should Summoners War: Lost Centuria prove successful, it would provide a tailwind for Summoners War: Lost Centuria to enjoy additional sales growth momentum.

2Q20 review: Earnings satisfy consensus

On a consolidated basis, Com2uS posted 2Q20 sales of W147.5bn (+18.8% y-y, +50.1% q-q) and OP of W38.0bn (+17.8% y-y, +60.9% q-q), with OP arriving in line with both our estimate of W39.2bn and consensus of W37.3bn. Helped by both a 6th anniversary event and large-scale updates, Summoners War delivered its all-time highest quarterly sales in 2Q20. Moreover, Com2uS Professional Baseball and MLB 9 Innings GM both showed healthy 2Q20 earnings in keeping with the opening of pro baseball season. Although sales of the original Summoners War title will likely slow going forward, Com2uS’s earnings growth is to be re-energized by the two Summonrs War-based titles scheduled to debut in 1H21.

 

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