KOSDAQGames950190

Ghost Studio

₩9,740▲ 0.41%2026-10-02 close

Market Cap

₩126.5B

Turnover

₩100M

Volume

10,000 shares

Shares out.

13M

PER

13.8×

PBR

—

EPS

₩683

Dividend Yield

5.89%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩554 per share · Prices as of the 2026-10-02 close

Report overview

Casual Games Cool as Content and Beauty Businesses Emerge

As core casual game revenue structurally slows, Netflix drama production and a new cosmetics business are emerging as fresh growth drivers, though earnings stability from these new ventures is still being tested.

1
Consolidated 2025 revenue recovered to KRW 109.5 billion, but the operating margin fell to 13.6%, sharply down from 29.9% in 2022.
2
Fourth-quarter 2025 revenue surged to KRW 48.8 billion, yet net income attributable to owners swung to a loss of about KRW 3.99 billion, reflecting large volatility below the operating line.
3
In the first two quarters of 2026, revenue normalized to roughly KRW 20 billion per quarter, with the operating margin recovering to above 20% and quarterly net income holding around KRW 4 billion.
4
The Netflix Originals produced by the company scored back-to-back global hits, demonstrating its content production capability.
5
The company maintains a very low debt ratio in the low double digits and has a track record of paying an annual cash dividend, underscoring balance-sheet stability.

Business structure

Ghost Studio was founded in Hong Kong in 2016 as a mobile game developer, listed on KOSDAQ in 2020, and took on its current name and business structure after acquiring 100% of entertainment company Ghost Studio in 2023.

Its core game business offers more than 25 social casino and slot titles, including Classic Vegas Casino and Double Hit Casino, plus over ten Solitaire-style games, and has expanded into Tripeaks, puzzle, and management-simulation genres.

Notable releases include Pocket Battles, Match Miracle, Cooking Tour, and Match Delivery, with revenue generated mainly through in-app purchases and advertising. Development subsidiaries in Beijing and Chengdu support the game business, which generates revenue mainly from North America and Europe.

Since 2023, the company has expanded into webtoon/web-novel platforms through subsidiaries Mitoon&Novel and Bluepick, and into drama/film production and talent management through its entertainment subsidiary, also named Ghost Studio.

Within this lineup, Netflix Original series production has become a new revenue source, and in May 2025 the company launched its own cosmetics brand, Pixelpure, expanding into overseas platforms as part of continued diversification.

Competitively, casual and social casino games face low technical entry barriers, attracting numerous global players, a point the company itself has acknowledged in its own regulatory filings.

As a result, the company is in the process of transforming from a pure casual-game cash cow into a diversified content company spanning webtoons, drama, and beauty.

Earnings trend

Quarterly revenue · Operating profit

₩20.1B₩3.8B25Q2₩20.9B₩4.3B25Q3₩48.8B₩3B25Q4₩19.8B₩4.1B26Q1₩20.4B₩4.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩105.1B₩31.4B2022₩105.1B₩26.6B2023₩87B₩15.6B2024₩109.5B₩14.9B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩20.1B	₩3.8B	18.8%
2025Q3	₩20.9B	₩4.3B	20.4%
2025Q4	₩48.8B	₩3B	6.1%
2026Q1	₩19.8B	₩4.1B	20.8%
2026Q2	₩20.4B	₩4.5B	22.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩105.1B	₩31.4B	₩27.7B	29.9%	22.5%	7.6%
2023	₩105.1B	₩26.6B	₩23.4B	25.3%	14.5%	8.6%
2024	₩87B	₩15.6B	₩8.7B	18.0%	6.0%	22.1%
2025	₩109.5B	₩14.9B	₩8.3B	13.6%	5.5%	10.0%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Annual revenue was flat at KRW 105.1 billion in both 2022 and 2023, dipped to KRW 87.0 billion in 2024, and rebounded to KRW 109.5 billion in 2025.

Operating margin, however, declined for four consecutive years, from 29.9% in 2022 to 25.3% in 2023, 18.0% in 2024, and 13.6% in 2025, indicating a structural erosion of profitability independent of the revenue recovery.

Net income attributable to owners fell sharply from KRW 27.7 billion in 2022 to KRW 8.7 billion in 2024 and stayed around KRW 8.3 billion in 2025.

On a quarterly basis, the second and third quarters of 2025 were stable, with revenue of KRW 20.1-20.9 billion and operating profit of KRW 3.8-4.3 billion, but fourth-quarter 2025 revenue jumped to KRW 48.8 billion.

This reflected the first-ever recognition of Netflix drama production revenue, which the company cited as the main driver of the change, attributing it to the expansion of its content business through global OTT drama production revenue.

However, operating profit that quarter was only about KRW 3.0 billion, showing sharply compressed margins, and net income attributable to owners swung to a loss of roughly KRW 3.99 billion, indicating significant volatility below the operating-profit line.

Subsequently, in the first quarter of 2026 (revenue KRW 19.8 billion, operating profit KRW 4.1 billion, net income KRW 4.1 billion) and the second quarter (revenue KRW 20.4 billion, operating profit KRW 4.5 billion, net income KRW 4.4 billion), revenue returned to levels typical of the core casual game business, with the operating margin recovering into the low-20% range and quarterly net income stabilizing around KRW 4 billion.

Over the trailing four quarters (Q3 2025 through Q2 2026), combined net income attributable to owners totaled roughly KRW 8.9 billion, with the recovery in the first half of 2026 largely offsetting the one-off loss recorded in the fourth quarter of 2025.

Industry analysis

The casual social casino and Solitaire game market is a mature segment with low technical entry barriers that attracts numerous global operators, a competitive dynamic the company itself has acknowledged in its own filings.

This drives up marketing spend needed to acquire new users, and profitability comes under quick pressure once platform fee promotions from Google and Apple normalize. Indeed, margins deteriorated in the first half of 2025 once temporary platform fee discounts expired.

On the content side, however, global OTT demand for Korean drama has remained strong, and the company's co-produced Netflix Original series have repeatedly reached the top of non-English-language rankings, establishing its standing as a content producer.

That said, project-based revenue recognition in drama production tends to create significant seasonality and volatility, and the market is still watching to see whether hit content translates directly into improved financial results.

The cosmetics business rides a favorable tailwind from growing overseas demand for K-beauty, but as a late entrant its revenue contribution has not yet been established.

Relative to competitors, the company has a long service history and multi-language, multi-region operating know-how in casino and Solitaire games, but it remains smaller in scale than leading game publishers.

Outlook

The Netflix Original series released in November 2025, the company's first self-produced drama, reached number one in 20 countries globally, marking a successful debut.

This was followed by a sequel series released on April 3, 2026, which recorded 7.4 million viewing hours in its second week, topping the Netflix non-English TV category and ranking first in 14 countries worldwide, extending the studio's back-to-back hit streak.

However, the stock rallied sharply intraday on the news before settling back down, and an industry source noted that how content hits translate into recognized earnings depends on revenue recognition structure and production-cost recovery methods, meaning the timing and scale of the financial impact can vary.

In the game segment, the company globally launched a new 3D match-puzzle title, Match Delivery, in September 2025, continuing to expand its casual game lineup.

On the cost-efficiency side, the company is reported to have reduced headcount in its game division and stabilized marketing costs, a move that coincides with the operating-margin recovery seen in the first half of 2026. Its entertainment subsidiary has also reportedly begun production of a new MBC drama, "White Scandal,

Valuation

PER

13.8×

PBR

—

ROE

6.0%

EPS

₩683

BPS

—

Dividend per share

₩554

The current share price trades at a discount to the company's book value per share, rather than at a premium. The multiple applied to earnings appears lower than the valuation band seen during 2022-2023, when the company posted operating margins in the 25-30% range amid faster growth.

The recent dividend yield stands out as relatively high within the KOSDAQ game sector, consistent with a policy of paying stable annual cash dividends backed by steady operating cash flow.

That said, given the swing to a one-off net loss in the fourth quarter of 2025 and the project-based volatility inherent in content revenue, interpreting the earnings multiple requires looking at both the trailing four-quarter trend and the future revenue stability of the new content and beauty businesses.

Overall, the valuation of this stock appears to reflect a mixed earnings structure combining a stable game cash-cow business with higher-volatility new ventures.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23

Bull factors

Production Capability Proven by Back-to-Back Netflix Hits

Its first produced drama topped rankings in 20 countries globally, and the follow-up series also hit number one in the Netflix non-English TV category and in 14 countries with 7.4 million viewing hours in its second week.

Back-to-back hits have built credibility as a content producer, and the entertainment subsidiary is reportedly also producing a new MBC drama, keeping the pipeline active. This provides a basis for diversifying revenue sources beyond the single game business.

Low Debt Ratio and Stable Cash Dividend

The debt ratio has remained very low, in the single-to-low-double digits, throughout 2022-2025, supported by a consistent inflow of operating cash flow each year. On this basis, the company has paid a cash dividend annually.

Despite earnings volatility from new-business investment, overall financial soundness has not been significantly impaired.

Signs of Operating Margin Recovery in H1 2026

After the one-off net loss in the fourth quarter of 2025, the operating margin recovered to the low-20% range in the first two quarters of 2026, and net income stabilized around KRW 4 billion per quarter.

This coincides with reported cost-efficiency efforts in personnel and marketing spend, suggesting the core game business's profitability may have passed a trough.

Bear factors

Structural Slowdown in Casual Game Revenue

The core game business has reportedly seen continued revenue contraction since 2023 amid intensifying competition. The market structure allows continual entry of new competitors due to low technical barriers, and marketing spend needed to acquire new users remains a persistent burden. Even as new-business revenue grows, it may not fully offset the contraction in the core game business.

Multi-Year Decline in Operating Margin

The operating margin declined for four straight years, from 29.9% in 2022 to 13.6% in 2025. The fact that margins kept falling even as revenue recovered in 2025 raises the possibility that the profit structure of new businesses, such as drama production, may carry lower margins than the legacy game business.

Lag and Volatility Between Content Hits and Earnings Impact

In the fourth quarter of 2025, drama production revenue was recognized for the first time, sharply boosting revenue, yet net income actually swung to a loss.

Even after news of the Netflix hit, the stock only spiked intraday without a clear sustained reaction, reflecting market concern that content hits may not directly translate into commensurate earnings recognition in scale or timing.

Risk factors

Content Revenue Volatility

Drama production revenue is recognized on a project basis, creating significant quarterly volatility. As seen in the fourth quarter of 2025, revenue can surge while net income actually deteriorates due to associated costs and non-operating items. The earnings contribution can vary greatly depending on the success and contract terms of future content.

Foreign Exchange and Overseas Business Risk

The company uses the US dollar as its functional currency for consolidated financial reporting and provides won-converted results using separately published exchange rates.

Fluctuations in the won-dollar exchange rate can directly affect reported revenue and profit in won terms, and because most game and content revenue is generated overseas in North America and Europe, the company faces persistent currency exposure.

Intensifying Competition and Platform Policy Risk

The casual and social casino game market has low technical entry barriers, leading to continuous inflows of new competitors.

Changes in platform fee policies or promotional terms from Google and Apple directly affect profitability, and margins actually deteriorated in the first half of 2025 when fee promotions normalized.

What to watch next

Around November 2026 (expected)
Watch for the preliminary third-quarter 2026 earnings release — the key point is whether the operating margin recovery to the 20%-plus range and stabilized net income seen in the first half continue into the third quarter.
Upon confirmation and broadcast of the MBC drama 'White Scandal'
Once the new drama being produced by the entertainment subsidiary has a confirmed broadcast schedule and its broadcast/revenue recognition timing is set, this will provide additional evidence on whether content revenue can recur reliably.
Upon disclosure or reports of Pixelpure's overseas sales expansion
Confirming when and to what extent the cosmetics business begins to meaningfully contribute to revenue will help assess whether business diversification is translating into actual financial results.
Upon announcement of new game or content IP releases
If a schedule for follow-up casual games after Match Delivery, or new drama and film IP, is announced, it will help assess whether growth momentum continues across both the game and content businesses.

Overall view

Ghost Studio is diversifying its revenue structure by layering new businesses—drama production, webtoons/web novels, and cosmetics—on top of its stable casual game cash cow.

Annual revenue recovered in 2025 on the back of recognized Netflix drama production revenue, but the operating margin fell for a fourth straight year to 13.6%, and the fourth quarter saw net income swing to a loss even as revenue surged, illustrating significant volatility.

In the first half of 2026, revenue returned to levels typical of the core game business, the operating margin recovered into the 20%-plus range, and net income stabilized at roughly KRW 4 billion per quarter.

Two back-to-back global hits among its Netflix Original productions have proven the company's content production capability, but the timing and scale at which such hits flow through to earnings remain variables to watch.

The balance sheet is relatively stable, characterized by a low debt ratio, consistent operating cash flow, and an annual dividend track record.

Ultimately, the key to assessing this stock lies in weighing the pace of structural slowdown in the core casual game business against how reliably the new content and beauty businesses can contribute to revenue going forward.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.