1. Mitoon’s Q2 Performance: Decoding the Earnings Surprise
Mitoon reported Q2 2025 revenue of KRW 22.3 billion, operating profit of KRW 2.9 billion, and net income of KRW 2.3 billion, significantly exceeding market expectations. While slightly down from Q1, this performance is encouraging given the overall industry slump. This is attributed to the initial success of ACE CASINO and Pixelpure, along with efficient cost management.
2. ACE CASINO and K-Beauty: Mitoon’s New Growth Engines?
Mitoon launched ACE CASINO to enter the Web3 gaming market and diversified its business with the K-beauty brand Pixelpure. Early results are positive, but long-term success depends on securing market competitiveness and continuous content development.
3. Key Risk Factors for Investors
- Core Business Recovery: Overcoming the downturn in the gaming business is crucial.
- New Business Performance: Monitoring the actual revenue contribution of ACE CASINO and Pixelpure is essential.
- Macroeconomic Uncertainty: The impact of external factors like exchange rate and interest rate fluctuations must be considered.
- Convertible Bond Dilution: Potential stock dilution from convertible bonds should be factored in.
4. Should You Invest in Mitoon? A Strategic Approach
While positive short-term price momentum is expected, a cautious approach is recommended for long-term investors. Closely monitoring the performance of new ventures and the recovery of the core business is crucial. Currently, a wait-and-see approach is recommended, pending further performance improvements and concrete results from new businesses.