Officials from South Korean massively multiplayer online (MMO) games publisher NCsoft have revealed details of the company’s fourth quarter financial details, in which profits dropped by more than 40 percent.
The company reported net profits for the full year of KRW 38.0 billion ($40.5m) on sales of KRW 338.7 billion ($361 million). Sales were relatively unchanged on the previous year but net profit was down by 43 percent, year on year. The drop in profits was blamed on increased in investment in expanding the company’s game portfolio and future growth. The full year results also include a one time write-off related to the failed Auto Assault
in the second quarter of 2006.
Fourth quarter results saw a net profit of KRW 18.7 billion ($19.9m), up from KRW 12.8 billion ($13.6m) in 2005, on consolidated sales of KRW 90.2 billion ($96.1m), up 6 percent from the previous year. Brisk sales of evergreen titles Lineage
and Lineage II
were credited for the increase, along with the successful launch of Guild Wars: Nightfall
By region, fourth quarter sales in Korea were KRW 53.4 billion ($56.9m), down 1 percent, and in Japan KRW 8 billion ($8.5m), down 13 percent. The launch of Guild Wars: Nightfall
and an increase in players for Lineage II
saw North American sales rise by 14 percent to KRW 18.0 billion ($19.1m), with European sales up by 76 percent to KRW 10.8 billion ($11.5m) for the same reasons. Of total sales, the company saw a total of 46 percent being derived from overseas.
In terms of specific game titles, Lineage
sales increased by 2 percent on the previous quarter, with Lineage II
down by the same percentage. Sales of the Guild Wars
franchise rose by 65 percent, with City of Heroes
down by 26 percent. Of total sales for the company Lineage
accounted for 35 percent, Lineage II
36 percent, Guild Wars
22 percent and City of Heroes
The company’s earning guidance for the next financial year stands at sales of KRW 358 billion to 367 billion ($384m to $394m) and an operating profit of KRW 42 billion to 49 billion ($45m to $53m). The company expects to launch new MMO title Aion
in Korea at the end of 2007, as well as an upgraded version of service platform PlayNC. New Western-orientated titles Exteel
and Dungeon Runners
are expected in the first half of the year, with Tabula Rasa
and a new Guild Wars
update in the second half of the year.