NCsoft Profits up on Lineage, Lineage II

by James Fudge, 5/14/2008 7:40 PM

NCsoft announced financial results for the quarter ended March 31, 2008, proving that its oldest and dearest franchise is still the driving force behind its continued success. Sales for the quarter were 88.1 billion Korean Won (US $84.3 million). Operating income was KRW 19.7 billion (US $18.9 million), and net profit was KRW 8.1 billion (US $7.7 million). Operating profit showed significant improvements quarter over quarter by 63 percent and year over year 16 percent, according to NCsoft.

Lineage and Lineage II continued to deliver the lion's share of NCsoft's profits for the quarter, with modest gains from Guild Wars, and City of Heroes. The popularity of Lineage in Asia, continued sales of Guild Wars, City of Heroes in North America and Europe, and a decrease in advertising and sales costs were some of the primary reasons for the increase in operating income. Richard Garriott's Tabula Rasa was conspicuously absence in NCsoft's earnings.

By region, sales came to KRW 49.8 billion (US $47.7 million) in South Korea, KRW 10.9 billion (US $10.4 million) in North America, KRW 8.9 billion (US $8.5 million) in Europe, KRW 9.6 billion (US $9.2 million) in Japan, KRW 2.8 billion (US $2.7 million) in Taiwan, and KRW 6 billion (US $5.7 million) in royalty income. The percentage breakdown of sales by region shows 57 percent in Korea, 12 percent in North America, 10 percent in Europe, 11 percent in Japan, 3 percent in Taiwan and 7 percent from royalty income.

By game title, sales came to KRW 29 billion (US $27.8 million) from Lineage, KRW 35.7 billion (US $34.1 million) from Lineage II, KRW 5.4 billion (US $5.2 million) from City of Heroes/City of Villains and KRW 9.5 billion (US $9.1 million) from Guild Wars. The percentage breakdown of sales by game title shows 35 percent from Lineage, 43 percent from Lineage II, 7 percent from City of Heroes/City of Villains and 12 percent from Guild Wars.

This summer NCsoft says that it plans to launch its third closed beta test of Aion before launching the product later in the year. Casual online games such as Point Blank, Punch Monster, Dragonica, and Love Beat are also scheduled for launch later this year.

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