Lineage Brothers' Outstanding Performance... NC Achieves Record Highest Quarterly Earnings in Q1 (Comprehensive)

Operating Profit 241.4 Billion KRW... 204% Increase Year-on-Year
Sales 731.1 Billion KRW... Highest Quarterly Performance Ever
Expectations Rise for Annual Sales to Reach 2 Trillion KRW This Year

[Asia Economy Reporter Jin-gyu Lee] "Taekjin hyung's all-nighter paid off."

NCSoft (hereafter NC) achieved its highest-ever first-quarter performance thanks to the strong showing of the 'Lineage brothers.' Revenue increased by 104% and operating profit by 204% compared to the same period last year. This was due to increased game usage as indoor activities rose amid the spread of the novel coronavirus disease (COVID-19). At this rate, it is expected that annual sales of 2 trillion won could be achieved.

◆Lineage brothers' strong performance = On the 12th, NC announced that its first-quarter revenue and operating profit reached 731.1 billion won and 241.4 billion won, respectively. Net profit recorded 195.4 billion won, up 162% from the same period last year. This surpasses the record for the largest quarterly performance set in the third quarter of 2017. Previously, NC recorded revenue of 727.3 billion won and operating profit of 327.8 billion won in Q3 2017, driven by the launch effect of Lineage M.

This record-breaking performance was driven by increased game usage due to COVID-19, with Lineage2M and Lineage M leading the results. Mobile game revenue, led by Lineage2M?which gained attention with the "Taekjin hyung stayed up all night?" advertisement?increased by 54% from the previous quarter to 553.2 billion won. By game, Lineage2M achieved 341.1 billion won, and Lineage M reached 212.0 billion won. Lineage M's revenue rose 9% compared to the same period last year. For PC games, Lineage recorded 44.8 billion won, Lineage2 26.4 billion won, Aion 10.1 billion won, Blade & Soul 19.6 billion won, and Guild Wars 2 12.5 billion won. PC game revenue increased by 20% year-on-year. Royalty revenue grew 19% from the previous quarter to 52.8 billion won, thanks to the effect of Lineage M's Taiwan update. An industry insider said, "Lineage2M, launched in November last year, maintained an average daily revenue of around 4 billion won in Q1, playing a key role as NC's cash cow," adding, "Lineage M also recorded an average daily revenue of around 2 billion won in Q1, dispelling concerns about revenue decline due to Lineage2M's launch." According to mobile application ranking analysis site Gevolution, Lineage2M holds the number one spot in revenue on Google Play. Since achieving first place on December 1 last year, it has maintained the top position for six consecutive months. Revenue by region was 634.6 billion won in Korea, 19.0 billion won in North America and Europe, 12.9 billion won in Japan, and 11.8 billion won in Taiwan.

◆Expectations for the '2 trillion club' this year = Industry expectations are growing that NC will join the '2 trillion club' this year. NC's revenue has remained in the 1.7 trillion won range for three years since 2017. The daily revenue of Lineage2M and Lineage M remains high, and the global launch of Lineage2M is also scheduled, making the possibility higher than ever. Additionally, new mobile titles based on proprietary intellectual property (IP) such as Aion 2 and Blade & Soul 2 are set to be released one after another. Jin-gu Kim, a researcher at KTB Investment & Securities, explained, "The domestic performance of Lineage2M will be reflected in every quarter, and the success of overseas market entry will also drive growth," adding, "Annual revenue this year is expected to increase by 59% from last year to 2.7099 trillion won." An NC official stated, "We plan to sequentially introduce various new titles currently in production on mobile, PC, and console platforms both domestically and internationally this year."

This content was produced with the assistance of AI translation services.