NCSoft Reports Q2 Operating Profit of 123 Billion KRW, Up 9% YoY

[Asia Economy Reporter Seungjin Lee] NCSoft announced its second-quarter earnings. Both revenue and operating profit increased compared to the previous year, but growth slowed as the popularity of Lineage declined.

NCSoft reported on the 12th that its second-quarter revenue increased 17% year-on-year to 629.3 billion KRW. Operating profit was 123 billion KRW, up 9% from the previous year, and net profit for the period grew 26% to 118.7 billion KRW.

Although earnings improved compared to last year, results dropped significantly compared to the previous quarter due to a decline in sales of the Lineage series. Second-quarter revenue and operating profit decreased by 20% and 50%, respectively, compared to the previous quarter. In particular, mobile game revenue fell 26% quarter-on-quarter due to stabilization of Lineage W’s revenue and a decline in Lineage2M’s revenue.

By region, revenue was 408.8 billion KRW in Korea, 144.6 billion KRW in Asia, and 39.9 billion KRW in North America and Europe. Revenue from North America and Europe increased 64% year-on-year and 7% quarter-on-quarter. Royalty revenue was 36 billion KRW. Overseas and royalty revenue accounted for 35% of total revenue.

Mobile game revenue recorded 475.2 billion KRW, up 35% year-on-year. By product, Lineage W generated 223.6 billion KRW, Lineage M 141.2 billion KRW, Lineage2M 96.2 billion KRW, and Blade & Soul 2 14.2 billion KRW.

PC online game revenue was 25.7 billion KRW for Lineage, 22.6 billion KRW for Lineage2, 14.2 billion KRW for Aion, 6.1 billion KRW for Blade & Soul, and 27.2 billion KRW for Guild Wars 2.

NCSoft explained, "Lineage M achieved a 22% increase quarter-on-quarter due to the effect of its 5th anniversary update. Guild Wars 2 saw a 70% year-on-year increase as sales from the third expansion pack released in February this year were fully reflected, achieving year-on-year growth for eight consecutive quarters."

NCSoft is developing various new titles in different genres that are increasing market share globally, including TL (MMORPG), Project R (Battle Royale), Project M (Interactive Movie), and BSS (Collectible RPG).