NC's Operating Profit Soars 2,070% on Success of "Aion 2" and "Lineage Classic" (Comprehensive)

First Quarter Sales Reach 557.4 Billion Won, Operating Profit at 113.3 Billion Won
Record-High PC Game Sales; New IPs to Be Unveiled Sequentially
German Studio JustPlay’s Results to Be Reflected from Second Quarter

NC announced a significant improvement in its first-quarter results, delivering a "surprise" performance driven by the success of "Aion 2" and the hit launch of "Lineage Classic."

On May 13, NC revealed that consolidated sales for the first quarter of this year reached 557.4 billion won, with operating profit at 113.3 billion won. These figures represent increases of 55% and 2,070%, respectively, compared to the same period last year. Net profit for the period rose by 306% to 152.4 billion won, while the operating margin reached 20%.

The strong performance was led by "Aion 2," launched at the end of last year, and "Lineage Classic," released in February this year. In the first quarter, "Aion 2" generated 136.8 billion won in sales, and "Lineage Classic" brought in 83.5 billion won. Notably, "Lineage Classic" achieved cumulative sales of 192.4 billion won during the 90 days following its launch (February 11 to May 11).

Thanks to this momentum, PC game sales reached a record quarterly high of 318.4 billion won, up 210% from the same period a year earlier. Mobile game sales amounted to 182.8 billion won. NC also reported that, following the launch of "Lineage Classic," its three major mobile titles continued to maintain solid user traffic. Mobile casual games generated 35.5 billion won in sales. This quarter, the sales of Lifuhuhu and SpringComms, companies invested in by NC, were reflected in its consolidated results for the first time.

By region, sales were distributed as follows: Korea accounted for 58%, Asia for 27%, and North America and Europe for 15%. Overseas sales, which represented 35% a year ago, expanded to 42%.

In the second half of this year, NC will launch global services for "Aion 2" in North America, South America, Europe, and Japan. New intellectual properties (IPs) such as "Cinder City," "Limit Zero Breakers," and "Time Takers" are also scheduled to be introduced sequentially after global testing.

Co-CEO Park Byungmoo stated during the earnings conference call that day, "This year marks the beginning of advanced growth and innovation, building on the efforts of the past two years. We aim not only to meet our annual guidance of 2.5 trillion won but also to achieve significantly higher internal profit targets."

He added, "Aside from the announced lineup, we are preparing 10 spin-offs and new titles, and expect even greater growth next year. We are steadily progressing toward achieving 5 trillion won in sales by 2030, with over 20 new titles and mobile casual games."

NC also expressed strong confidence in the growth of its mobile casual business. Lifuhuhu, the Vietnam-based game developer acquired last year, is set to release at least 20 games this year.

Hong Wonjun, NC's Chief Financial Officer (CFO), said, "Given that the principle of the mobile casual business is selective focus depending on the situation, we will intensively market and push one to two games per quarter. The same applies to other studios as well."

At the end of last year, NC acquired Lifuhuhu and the domestic company SpringComms, and in March this year, it acquired the German game developer JustPlay. The sales of Lifuhuhu and SpringComms were reflected in this quarter's consolidated results for the first time, and starting from the second quarter, JustPlay's sales are also expected to be included.

CFO Hong stated, "JustPlay's first-quarter sales grew by 76% compared to the same period last year, showing better-than-expected momentum. Once its results are consolidated starting in the second quarter, the scale of mobile casual business sales will expand significantly."

Additionally, for its future lineup beyond next year, NC highlighted its own in-development title "Horizon Steel Frontiers," as well as "Astrae Oratio" from local developer Dynamis One, and "DEFECT" from North American studio Empty Vessel.

Co-CEO Park commented on "Horizon Steel Frontiers," saying, "We are considering global testing starting in the second half of the year. We are discussing marketing strategies in light of the positive response from Sony, which owns the original IP. Once details are finalized, a concrete roadmap will be presented."