SHIFT UP (462870) Q3 2024 earnings summary

Executive summary

• 9M 2024 revenue was ₩160.6bn, led by Goddess of Victory: Nikke and the April launch of Stellar Blade; operating income was ₩106.5bn and net income ₩88.4bn.

• Global-listed on the KOSPI on July 11; plans include expanding Nikke into China, bringing Stellar Blade to PC, and developing new IP and related businesses.

Financial highlights

• 9M revenue was ₩160.595bn vs ₩122.777bn in 9M 2023; operating income was ₩106.519bn vs ₩78.676bn, and net income was ₩88.444bn vs ₩74.072bn.

• Q3 revenue was ₩58.018bn vs ₩38.091bn in Q3 2023; operating income was ₩35.577bn vs ₩16.140bn, and net income was ₩23.484bn vs ₩23.936bn.

• 9M operating cash flow was ₩103.077bn; cash and cash equivalents rose to ₩292.117bn from ₩116.136bn at year-end 2023.

Outlook and guidance

• Nikke China service preparation is underway with its global publisher; China is viewed as a key opportunity to extend the IP’s performance.

• Stellar Blade PC expansion is in preparation; free content updates, seasonal events, and derivative works are intended to strengthen and extend the IP.

• Portfolio plans include developing and securing new IP, expanding IP-based business, and exploring AI to improve content-production efficiency and gameplay variety.

• IPO proceeds include ₩315bn planned for facilities and ₩114.67bn for operating needs; the facilities spending timeline had not yet arrived at quarter-end.