[EQUITIES] ‘DoubleUGames’ subsidiary back on track’
[THE INVESTOR] DoubleUGames will gain momentum in the fourth quarter as its subsidiary Double Down Interactive normalizes, said Shinhan Investment on Nov. 8 maintaining a “buy” recommendation and 85,000 won (US$75.99) target price.
Its operating profit in the period will rise 8.7 percent from the previous quarter to 42.7 billion won. It is the conventional year-end high season and average revenue in the fourth quarter over the past three years has increased 10 percent from the third quarter, said analyst Lee Mun-jong.
DDI’s earnings have been restored and will begin to be reflected in the fourth quarter. As the figures will be fully reflected from next year, the game company’s operating profit will rise as high as 22 percent. Considering that the subsidiary was 13th highest in revenue before acquisition, DoubleUGames will be able to generate more revenue, he added.
By Hwang You-mee (email@example.com)