|Smart Today=Reporter Kim Se-hyung| Hana Securities stated on the 22nd that game companies with a high proportion of global sales are expected to benefit from the recent weakness of the Korean won. In particular, it is anticipated that W Games will see a significant benefit.
Hana Securities noted that game companies with a high proportion of global sales are directly exposed to exchange rate effects, and thus can benefit in a strong dollar phase, predicting the benefits from the recently soaring dollar-won exchange rate.
In particular, W Games, which receives revenue in dollars while paying costs in won during a strong dollar phase, is expected to benefit the most.
According to this, as of the last third quarter, the order of companies with a high proportion of global sales is W Games (100%), Krafton (92%), Shift Up (approximately 85%), Netmarble (71%), NeoWiz (53%), and NCSoft (40%).
Hana Securities also stated, "There are forms like Krafton that sell in-game currencies in dollars on Steam, so if the proportion of global sales is high, the positive impact on performance is clear," adding, "Although the strong dollar may not be 100% reflected in sales depending on the regional settlement structure, the average exchange rates for the fourth quarter compared to the previous year are expected to benefit as the yuan is +5.3%, euro +13.1%, and yen +2.7%."
Additionally, among domestic game companies, those with significant dollar assets are expected to see improvements in net profit through non-operating income recognition, and it is judged that if the exchange rate at the end of the fourth quarter closes at around 1476.3 won, the consensus for net profit of game companies is likely to be revised upwards, assuming there are no one-time subsidiary impairment losses.
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