South Korean-headquartered MMO publisher and developer NCsoft has announced its revenues for the fiscal year that ended December 31, 2005, recording impressive sales of KRW (Korean Won) 338.8 billion (US$346.5 million), and somewhat reduced profit of KRW 76.6 billion (US$78.3 million) and pre-tax profit of KRW 84.6 billion (US$86.5 million) based on its 2005 financial statement.
Sales grew by 17% from the previous year (FY2004), though operating income and pre-tax income fell by 21% and 13% respectively, partly due to the company's continued spending on expansion.
According to NCSoft, the financial results were driven by the perennially popular, at least in Korea, Lineage
and Lineage 2
, which have historically stable sales records, but other revenue includes that from sales of the non-subscription-based Guild Wars
, which launched service in the first half of the year and Cryptic's superhero follow-up City of Villains
, which was released in the second half of 2005.
Overall, regional sales based on percentages showed Korea with 51% of total sales, North America 27%, Europe 8%, Japan 8%, thanks to a strong performance frmo Lineage
, and overseas royalties 6%. With a domestic (Korea) to overseas sales ratio of 51/49 and increased overseas sales, NCsoft continues to expand globally
A breakout of sales by product line for the quarter indicates that Lineage
and Lineage 2
had a strong performance in Q4. With the success of the Episode 4
contributed sales of KRW 29.8 billion, up 6% from the previous quarter and Lineage 2
recorded sales of KRW 30.3 billion, up 2% from the previous quarter. City of Villains
, which launched in the fourth quarter in North America and Europe, followed the success of its predecessor, City of Heroes
, and marked sales of KRW 15.8 billion, up 146% from the previous quarter.
For 2006 business goals, NCsoft is anticipating sales of KRW 396 billion ($408 million) and operating profit of KRW 66 billion ($68 million). The regional sales mix is expected to be: Korea 53%, North America and Europe 30%, Japan 10%, and overseas royalties 7%. Sales by product mix is anticipated to be: Lineage
27%, Lineage 2
29%, Guild Wars
13%, City of Heroes/Villains
10%, new games 14%, and royalties 7%.