NC Barely Avoids Deficit... 2Q Operating Profit 8.8 Billion Won (Update)

Sales of 368.8 billion KRW, Operating Profit of 8.8 billion KRW
Down 16.2% and 74.9% YoY, respectively

NCSoft announced on the 5th that it recorded consolidated sales of 368.8 billion KRW and an operating profit of 8.8 billion KRW in the second quarter of this year. These figures represent decreases of 16.2% and 74.9%, respectively, compared to the same period last year.

Sales by region were 240.3 billion KRW in Korea, 56.9 billion KRW in Asia, and 33.9 billion KRW in North America and Europe. Royalty revenue amounted to 37.7 billion KRW, increasing by 15% compared to the previous quarter due to the Neo Classic server update of Blade & Soul in China. Overseas and royalty sales accounted for 35% of total sales.

Sales by platform were 218.2 billion KRW for mobile games and 86.2 billion KRW for PC online games. Mobile game sales decreased by 13% compared to the previous quarter, while PC online game sales decreased by 6%. However, Lineage M saw a significant increase in user metrics due to its 7th anniversary update and the launch of the Reboot World.

NCSoft will release its new switching RPG (role-playing game) Hoyun on the 28th in Korea, Japan, and Taiwan. It is also preparing for the global service of TL (THRONE AND LIBERTY) in collaboration with Amazon Games. The company plans to accelerate global expansion by preparing services for Blade & Soul 2 in China and Lineage 2M in Southeast Asia.

NCSoft is investing in diversifying its game portfolio with genres such as shooting and subculture games, as well as expanding its global market presence. Recently, it made a 4.8 billion KRW investment in Moon Rover Games, a Sweden-based shooting game specialist developer, and completed a 37 billion KRW investment in publishing rights and equity in Big Game Studio, a domestic subculture game specialist developer. The company plans to actively seek additional investment opportunities to continue pursuing business diversification.