"Targeting the Global Market with Lineage W... NC Strengthens Performance Momentum in the Second Half"

Performance Improvement Momentum Ignites from Second Half
Bigger Growth Possible Next Year

Kim Taek-jin, CEO of NCSoft

[Asia Economy Reporter Minwoo Lee] NCSoft aims for a full-scale earnings rebound through its upcoming second-half release, 'Lineage W.' Along with Blade & Soul 2, which is also scheduled for release in the second half of this year, sales are expected to be fully reflected, leading to a significant improvement starting next year.

On the 22nd, Korea Investment & Securities maintained its target price of 1.1 million KRW and a 'Buy' rating for NCSoft based on these factors. The previous trading day's closing price was 853,000 KRW.

With the unveiling of 'Lineage W' on the 19th, expectations grew that the previously sluggish stock price could rebound. Since the game was developed from the outset with a focus on overseas markets, it highlights narrative structures tailored to the preferences of international users and expands the existing clan battles into a concept of national wars.

Kim Taek-jin, CEO of NCSoft, held an online showcase called 'The World' at the time, stating, "This project was prepared with the mindset of developing the last Lineage," and emphasized, "It is the culmination of all the intellectual property (IP) of Lineage accumulated over 24 years." On that day, NCSoft's stock closed up 8.25% compared to the previous day, marking the largest single-day gain this year.

Accordingly, there is an analysis that NCSoft should be viewed differently from the second half of the year onward. Jeong Ho-yoon, a researcher at Korea Investment & Securities, said, "Previously, the only momentum for the second half was the release of Blade & Soul 2 on the 26th, but with the additional release of Lineage W, the momentum for new titles has become stronger," adding, "From the first quarter of next year, when the sales of both games are fully reflected, earnings are expected to improve more rapidly." Korea Investment & Securities estimates the daily sales for the first six months after launch to be 2.2 billion KRW for Blade & Soul 2 and 2.5 billion KRW for Lineage W, respectively. Accordingly, NCSoft's operating profit for the first quarter of next year is projected to increase by 539.2% compared to this year, reaching 362.6 billion KRW.

Researcher Jeong also noted, "From 2022, it is highly likely that the previously mentioned new titles from NCSoft, 'Aion 2' and 'Project TL,' will be released sequentially," diagnosing that "this could be another period of significant earnings growth for NCSoft."

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