NCSoft's Second-Quarter Operating Profit Up 70.5% Year-on-Year on Increased Game Sales

NCSoft reported improved results compared to the same period last year, driven by increased game sales.

NCSoft Pangyo R&D Center. Provided by NCSoft

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On August 12, NCSoft announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally estimated at 15.1 billion KRW, up 70.5% from the same period last year. During the same period, revenue rose 3.7% to 382.4 billion KRW. However, due to factors such as exchange rate fluctuations, the company posted a net loss of 36 billion KRW, turning to a deficit.

Both mobile and PC online game sales increased compared to the previous quarter and the same period last year.

Mobile game sales reached 219 billion KRW, up just 0.3% year-on-year and 6% quarter-on-quarter. Among these, Lineage2M expanded its global service region to Southeast Asia, achieving 48 billion KRW in sales, a 27% increase from the previous quarter.

PC game sales reached 91.7 billion KRW, up 6% year-on-year and 10% quarter-on-quarter. In particular, Aion posted 13 billion KRW in sales, a 53% increase from the previous quarter, driven by the launch of new servers.

By intellectual property (IP), LineageM generated the largest revenue at 121.1 billion KRW, followed by Lineage2M (48 billion KRW), LineageW (47.6 billion KRW), Lineage2 (22.7 billion KRW), Lineage (20.7 billion KRW), Blade & Soul (19.5 billion KRW), and Guild Wars 2 (15.8 billion KRW).

By region, sales were 244.8 billion KRW in Korea, 69.1 billion KRW in Asia, and 26.2 billion KRW in North America and Europe. Royalty revenue was recorded at 42.3 billion KRW. Overseas and royalty revenue accounted for 36% of total sales.

Operating expenses increased by 2% year-on-year to 367.3 billion KRW.

NCSoft plans to launch Aion2, a highly anticipated MMORPG, in the fourth quarter. Aion2 is currently undergoing content enhancement based on feedback gathered from a user focus group test (FGT, small group test) conducted at the end of June.

NCSoft recently established a mobile casual center with the aim of expanding its global game portfolio and securing new growth engines. The company also plans to extend its artificial intelligence (AI) technology and data science capabilities into the mobile casual game sector. In addition, NCSoft will continue to invest in enhancing large-scale online game development, building clusters for shooting and subculture genres, and strengthening global competitiveness.

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