In This Article:
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Revenue: KRW360.3 billion, down 9% YoY.
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Operating Profit: KRW5.2 billion, positive QoQ, down 80% YoY.
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Pretax Income: KRW31.3 billion, positive QoQ, down 60% YoY.
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Net Income: KRW37.5 billion, positive QoQ, down 34% YoY.
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Mobile Game Sales: KRW206.3 billion, down 4% QoQ.
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Lineage W Sales: Increased 8% QoQ.
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Lineage M Sales: Decreased 7% QoQ.
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Lineage 2M Sales: Decreased 8% QoQ.
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Online PC Game Sales: KRW83.3 billion, down 11% QoQ.
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Royalty Sales: KRW45 billion, down 39% QoQ.
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Operating Costs: KRW355.1 million, down 13% QoQ and 5% YoY.
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Labor Cost: KRW187.2 billion, down 40% QoQ and 8% YoY.
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Marketing Expenses: KRW13.3 billion, down 26% QoQ, up 93% YoY.
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Depreciation: KRW25.1 million, down 3% QoQ and 9% YoY.
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Other Expenses: KRW149.2 million, down 10% QoQ and 4% YoY.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NCsoft Corp (XKRX:036570) reported a positive quarter-over-quarter operating profit of KRW5.2 billion, driven by reduced severance payments.
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The company turned profitable quarter-over-quarter with a net income of KRW37.5 billion.
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Lineage W mobile game sales increased by 8% quarter-over-quarter, indicating strong performance in this segment.
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The company has outlined a robust sales growth strategy, aiming for sales in the range of KRW1.4 trillion to KRW1.5 trillion per annum using legacy IPs.
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NCsoft Corp plans to release four new titles, including AION 2 and LLL, from the second half of this year to early next year, which could drive future growth.
Negative Points
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Year-over-year, sales were 9% lower due to a decline in flagship PC and mobile games.
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Operating profit dropped 80% year-over-year due to decreased sales.
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Net income was down 34% year-over-year, impacted by non-recurring gains from financial assets and foreign currencies.
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Mobile game sales decreased by 4% quarter-over-quarter, with Lineage M and Lineage 2M experiencing declines.
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Online PC game sales decreased by 11% quarter-over-quarter, affected by diminished Guild Wars 2 expansion sales.
Q & A Highlights
Q: Regarding AION 2, how is this game different from existing legacy IPs, and what business models or monetization schemes does it have? Additionally, how does AION 2 plan to address the negative reputation of Lineage-like games? A: (Byeong-Moo Park, Co-CEO) AION 2 inherits the spirit of the original AION but incorporates technical advancements. It strengthens PvE and raid aspects, differing from Lineage-like games. While it will have pay-to-win elements, it won't follow the typical Lineage monetization scheme. We are confident about AION 2 and will introduce detailed features through live streaming and FGT events to gather feedback and insights.