1. What Happened?

Neowiz Holdings announced impressive earnings in its H1 2025 report, with revenue of KRW 110.4 billion, operating profit of KRW 17.1 billion, and net income of KRW 25.8 billion. This significantly exceeded market expectations, driven by the success of “Lies of P” and “Brown Dust 2.”

2. Why These Results?

The robust growth of its core game business was the primary driver. The successful launch of “Lies of P” and the solid performance of “Brown Dust 2” significantly contributed to revenue and profit growth. Improved profitability in other business segments, such as advertising, investment, and commissioned services, also played a positive role. The company successfully turned around from a loss in Q4 2024, demonstrating a recovery in fundamentals.

3. What’s Next?

This earnings surprise is expected to trigger a re-evaluation of Neowiz Holdings’ corporate value. The successful recovery of the game business validates its core competencies, and the positive earnings will boost investor confidence, providing momentum for stock price appreciation. Continued growth of the “Lies of P” IP and global expansion of “Brown Dust 2” could further drive the stock’s upward trajectory.

  • However, caution is advised. Uncertainties surrounding new technology investments and the virtual asset business, as well as macroeconomic volatility, remain risk factors.

4. What Should Investors Do?

  • Continuously monitor the performance of the game business and new technology investments.
  • Keep an eye on the company’s strategies for managing regulatory risks related to the virtual asset business and changes in macroeconomic indicators.
  • It’s also important to check the sustainability of shareholder return policies.