[Click e-Stock] "NCSoft Needs to Prove Success of New Releases"

On May 15, Daishin Securities analyzed that despite workforce reductions at NCSoft, the company continues to experience a decline in revenue from its existing lineup. The firm stated that, for the stock price to trend upward, NCSoft needs to demonstrate tangible box office success rather than merely relying on anticipation for new releases. Daishin Securities maintained its investment opinion at 'Market Perform' and its target price at 180,000 won.

In the first quarter, NCSoft recorded sales of 360.3 billion won (down 9% year-on-year) and operating profit of 5.2 billion won (down 80% year-on-year). While sales met market expectations, operating profit fell short.

Lee Jieun, a researcher at Daishin Securities, explained, "The first quarter is an off-season for all three mobile Lineage titles. Lineage M, which accounts for the largest portion, saw a 7% decline compared to the previous quarter. Lineage 2M and Lineage W recorded an 8% decrease and an 8% increase, respectively. Royalty revenue dropped by 39% due to the fading impact of TL's launch." She added, "In the second and third quarters, operating profit is expected to continue declining due to a decrease in revenue from existing titles and increased marketing expenses for new releases."

There is an assessment that exceeding expectations in terms of box office performance is necessary to boost the stock price. Lee noted, "Although the company announced a 2026 sales guidance of 2 trillion won, this target appears unrealistic when considering the ongoing decline in revenue from existing IPs, the underperformance of new titles other than TL, and the unclear release schedules. To achieve a sustained upward trend in the stock price, NCSoft needs to prove the success of its new releases rather than relying solely on anticipation."