Netmarble Games Corp | Asia Pacific: 2Q26: OP miss

Research evidence excerpt

Not for redistribution without written consent of Morgan Stanley

M

Update

August 5, 2026 10:21 AM GMT

Morgan Stanley & Co. International plc, Seoul Branch+

Netmarble Games Corp | Asia Pacific

Sohyun Park

Equity Analyst

2Q26: OP miss

Seyon Park

Equity Analyst

AlphaSignals Earnings Reaction

Unchanged

Modest shortfall

Modest revision lower

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Netmarble Games Corp (251270.KS, 251270 KP)

Key Takeaways

Revenue of W749bn was in line with MSe/consensus, supported by a full-quarter

contribution from The Seven Deadly Sins: Origin, and the launch of SOL: Enchant.

Operating profit of W80bn missed MSe/consensus by 11%/12%, mainly due to

higher marketing spend for new launches and increased labor costs.

Net profit came in at W204bn, significantly above expectations, reflecting around

W200bn of gains from the Guro G-Tower sale.

S. Korea Telecoms & Internet | S. Korea

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 5, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (bn)

EV, curr (bn)

Avg daily trading value (bn)

Equal-weight

In-Line

W40,000

5

W37,950

W69,000-34,200

82

W3,109

W1,197

W12

The company reduced its 2H26 pipeline from five games to three, removing

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

Project OCTOPUS and EVIL BANE to focus more on extending the PLC of existing

EPS (W)**

Prior EPS (W)**

EPS (W)§

Revenue, net (W bn)

EBITDA (W bn)

ModelWare net inc (W

bn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

2,746

3,739

2,835

584

300

4,891

4,858

2,817

536

476

2,957

4,110

2,681

501

317

3,076

4,182

2,612

500

327

13.2

0.7

3.5

1.0

9.6

6.8

6.5

0.5

9.1

8.8

1.6

2.6

5.1

4.7

9.8

0.5

8.2

5.5

1.4

3.1

9.5

4.6

9.5

0.5

8.2

5.5

1.0

3.2

10.0

4.5

games.

Revenue sustainability remains to be proven: The shift from maximizing launch

volume to extending the life cycle of successful games is directionally positive, in

our view, as competition in the mobile gaming space has becoming increasingly

difficult.…