Q3 operating profit hits 119.6 billion won; full-year sales target raised

'Lineage Classic,' 'Aion 2' post cumulative sales of 427.8b, 110.3b won

NCsoft's R&D center in Pangyo [NCsoft]
NCsoft's R&D center in Pangyo [NCsoft]

NCsoft posted operating profit of 119.6 billion won ($89 million) in the third quarter, swinging back to profitability. "Lineage Classic," built on one of the company's flagship intellectual properties, surpassed 400 billion won in cumulative sales within eight months of launch, driving the earnings recovery. New title "Aion 2" also exceeded 110 billion won in cumulative sales just 42 days after its global release, raising expectations for further growth.

On the strength of those results, NCsoft raised its full-year sales target to 2.8 trillion won and set next year's sales target at up to 3.4 trillion won.

NCsoft disclosed Wednesday that its third-quarter consolidated sales reached 686.5 billion won, with operating profit of 119.6 billion won. Sales rose 91 percent year-on-year but fell 11 percent quarter-on-quarter. Operating profit turned positive compared with the same period last year.

Net profit for the period came in at 20 billion won, down 85 percent quarter-on-quarter, reflecting a decline in foreign-currency-related gains due to exchange rate fluctuations.

Cumulative sales for the first three quarters of this year totaled 2.01 trillion won, up 83 percent year-on-year, allowing the company to hit the lower end of its annual sales guidance of 2 trillion won ahead of schedule.

By region, sales broke down as follows: Korea at 46 percent, North America and Europe at 34 percent, and Asia at 20 percent. The overseas share reached 54 percent, extending a rising streak to five consecutive quarters. NCsoft said its global revenue base is expanding, led by North America and Europe.

By platform, PC games generated 289.4 billion won in sales while mobile games contributed 162.2 billion won.

NCsoft said the strong performance of Lineage Classic and Aion 2 was a key driver of the quarterly results. Lineage Classic recorded third-quarter sales of 158.7 billion won, bringing its cumulative sales since launch to 427.8 billion won over roughly eight months.

Aion 2, which began its global service last month, reached a peak concurrent user count of 410,000. Cumulative sales from early access on Sept. 30 through Tuesday totaled 110.3 billion won. Revenue from Aion 2's global service is expected to be fully reflected starting in the fourth quarter.

Mobile casual sales reached 171.9 billion won, accounting for 25 percent of total revenue and contributing to portfolio diversification. NCsoft said it plans to continue expanding its business, including signing a global publishing agreement for the next title from Chinese mobile game developer Gorilla Studio.

Following the third-quarter earnings rebound, NCsoft raised its full-year sales guidance to 2.8 trillion won.

The company set next year's sales guidance in a range of 3.2 trillion won to 3.4 trillion won. NCsoft plans to release 10 new titles across multiple genres — including subculture, massively multiplayer online role-playing games and shooters — in global markets through next year.


chami@heraldcorp.com