NCSoft sees first quarter sales and revenue decline
It sounds like NCSoft – the publishers behind such MMOs like Blade & Soul, Lineage 2, Guild Wars 2, and more – posted a 30% drop in sales for the first quarter of this year on top of other revenue losses.
Sales totaled KRW 512.5 billion, compared to KRW 731.1 billion, resulting in this 30% year-on-year decline. NCSoft also reported operating profits down 77% year on year. Net profit is down 59% year on year, with pre-tax profit down 64% year on year.
Quarter over quarter, net income has actually appeared stable and appears stable. But it’s clear that compared to FY2020, NCSoft’s bottom line has been hit hard. Mobile games like M line, and Lineage 2M both have seen fewer sales year on year.
In the PC space, games like Aion has actually seen an increase in sales year on year, just like Guild Wars 2, and Line. however, Line 2 and Blade & Soul seen a sales deficit year on year. Regionally, North America and the EU have actually grown year on year, as have Taiwan and Japan. But Korea, by far the biggest market for NCSoft in terms of sales, has shrunk considerably. NCSoft attributes this to large-scale mobile game updates.
From a breakdown of costs, operating expenses increased by 13% quarter on quarter, but down 7% year on year. Labor costs increased 26% quarter on quarter due to increased headcount, regular bonuses and special bonuses. Marketing also grew 23% quarter on quarter, which was attributable to advertising for new titles.
You can verify the full revenue report here.
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