NCSoft Sales Up, Profits Down After Guild Wars Expansion Launch

Author: by Staff

Korean-headquartered MMO publisher NCsoft has reported its quarterly results, revealing revenues of $88.3 million, and a profit of $11.2 million, with sales up 5% thanks to Guild Wars: Eye of the North's launch, but profits edging down 5%, due to declines in Lineage and City Of Heroes. Specifically, the company reported third quarter 2007 sales of KRW 80.0 billion (US$88.3 million), operating income of KRW 9.7 billion (US$10.7 million), and net income of KRW 10.1 billion (US$11.2 million), all on a consolidated basis. The percentage breakdown of sales for the third quarter shows 55% in Korea (US$47.9 million), and 45% from overseas entities and royalty income: US$15.1 million in North America, US$9.0 million in Europe, US$8.6 million in Japan, US$2.9 million in Taiwan, and royalty income of US$4.8 million. A successful release of Guild Wars: Eye of the North was a primary reason for 81% growth in sales over the previous quarter for Europe. Net sales in Taiwan rose by 15% over the previous quarter, thanks to the increase in Lineage II sales. Royalty sales increased by 20%, thanks to the strong Lineage sales in Taiwan. By game title, sales in the quarter for Lineage recorded KRW 23.7 billion (US$26.2 million), Lineage II KRW 32.4 billion (US$35.8 million), City of Heroes/City of Villains KRW 5.7 billion (US$6.3 million), and Guild Wars KRW 13.0 billion (US$14.4 million). Lineage and City of Heroes/City of Villains sales dropped 7% and 10%, respectively, and Lineage II and Guild Wars increased by 1% and 57%, respectively. NCsoft CFO JaeHo Lee said, “During the third quarter, sales in North America and Europe rose with the successful launch of the Guild Wars’ expansion pack. We expect to see an increase in fourth quarter sales with the newly launched Richard Garriott’s Tabula Rasa. Aion is in a closed beta testing process, and user responses are very positive.” As for the remainder of 2007, Atrix, which is currently in open beta test will launch before the end of the year. In the first half of 2008, NCsoft plans to launch in Korea its highly anticipated MMORPG, Aion and for casual games; a first person shooter Point Blank will enter closed beta testing as will side-scroll action games, Punch Monster and Dragonica.