SHIFT UP (462870) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record KRW 224.1bn, up 32.9% YoY; operating income rose 37.5% to KRW 152.7bn and net income rose 38.7% to KRW 148.0bn.

• Growth reflected continued performance from Goddess of Victory: NIKKE and the April launch of Stellar Blade, which added a second major revenue stream.

Financial highlights

• Revenue was KRW 224.1bn vs. KRW 168.6bn in FY2023; operating expenses rose 24.1% to KRW 71.4bn, slower than revenue growth.

• Operating income was KRW 152.7bn vs. KRW 111.1bn; pretax income KRW 178.8bn vs. KRW 114.3bn; net income KRW 148.0bn vs. KRW 106.7bn.

• Finance income increased to KRW 21.0bn from KRW 2.3bn, including KRW 9.7bn fair-value gains on financial assets; finance costs were KRW 2.2bn.

• Operating cash flow was KRW 114.1bn vs. KRW 119.8bn; cash and cash equivalents ended FY2024 at KRW 289.3bn, up from KRW 116.1bn.

Outlook and guidance

• Preparing Goddess of Victory: NIKKE’s China launch with its global publisher to extend the title’s regional reach.

• Stellar Blade PC expansion is in preparation; plans also include derivative works to extend the IP and reinforce its brand.

• A new cross-platform project, Witches, is in development to diversify the game portfolio; IP-based business expansion is also planned.