[Click e-Stock] "NCSoft Expected to See Significant Sales Growth This Year"

Daol Investment & Securities stated on January 15 that NCSoft is expected to see significant sales growth and increased profit margins this year. The investment opinion remains 'Buy' with a target price of 300,000 won.

Kim Hyeyoung, a researcher at Daol Investment & Securities, explained, "NCSoft plans to launch three new IPs, Lineage Classic, two spin-offs, and four regionally expanded games this year." She added, "With significant sales growth and a reduction in commission rates, an increase in profit margins is expected."

The company forecasts that in the fourth quarter of last year, NCSoft achieved sales of 424.1 billion won and operating profit of 5.8 billion won. Compared to the same period last year, sales increased by 3.6%, and operating profit turned positive. She noted, "During the live broadcast on the 6th of this month, it was announced that Aion 2's sales surpassed 100 billion won." She continued, "Since membership sales are recognized over 28 days and item sales over 9 days, it is estimated that 85.1 billion won was recognized in the fourth quarter of last year, with some deferred to the first quarter of this year."

She also explained, "The sales rankings of Lineage M, Lineage 2M, and Lineage W declined after the launch of Aion 2." She added, "While there may be some cannibalization, overall sales are expected to grow."