NCSoft is demonstrating the results of its two-year restructuring efforts through its first-quarter performance. The revival of legacy game intellectual properties (IPs) and the integration of mobile casual gaming have led to revenues and profits that significantly exceed market expectations. Industry experts view NCSoft's restructuring as the beginning of a structural transformation rather than a one-time event.
According to the gaming industry on June 1, NCSoft reported its first-quarter results during a conference call held on May 13, revealing consolidated revenues of 557.4 billion won, operating profit of 113.3 billion won, and net profit of 152.4 billion won. Revenue increased by 55% year-over-year and by 38% from the previous quarter, while operating profit surged 2,070% compared to the same period last year (5.2 billion won).
The primary drivers of this performance rebound are the successful launches of two PC massively multiplayer online role-playing games (MMORPGs), Aion 2 and Lineage Classic. First-quarter PC game revenue reached 318.4 billion won, marking a 210% increase year-over-year and a 69% increase from the previous quarter. This is NCSoft's highest quarterly PC revenue on record. For the first time since the launch of Lineage M in 2017, NCSoft's PC game revenue has surpassed its mobile game revenue.
Launched simultaneously in South Korea and Taiwan last November, Aion 2 generated 136.8 billion won in quarterly revenue. The company noted that Aion 2's active user engagement and high-quality gameplay contributed to achieving the highest quarterly revenue among NCSoft titles. Aion 2 is also set for a global launch in North America and Europe in the third quarter, indicating significant growth potential.
Lineage Classic recorded quarterly revenue of 83.5 billion won. Since its release on February 11, it has accumulated 200 billion won in revenue over 90 days. NCSoft reported that the game has attracted new users in their 20s and 30s while maintaining a solid daily active user (DAU) base among its existing older fan demographic.
The mobile casual gaming segment is also noteworthy. The performance of Lihuhu (Vietnam) and Springcoms (South Korea), both acquired by NCSoft last year, is being reflected in this quarter's results for the first time.
This marks the beginning of new revenue streams in NCSoft's previously MMORPG-focused revenue structure. Starting in the second quarter, results from JustPlay (Germany) will also be included, suggesting rapid expansion for NCSoft.
This earnings surprise is interpreted as evidence that NCSoft's promised "predictable growth structure" is taking shape, rather than being a result of a one-off new release. The company has previously outlined three main growth pillars: enhancing legacy IPs like Lineage, Aion, and Guild Wars; securing new IPs in genres like shooters and subcultures; and expanding into mobile casual gaming.
In the second half of this year, NCSoft plans to accelerate its new IP initiatives. The company is preparing for the global launch of Aion 2 in the third quarter, along with a diverse lineup of genres, including the PC console open-world tactical shooter "Cinder City," the animated action RPG "Limit Zero Breakers," and the time survival shooter "Time Takers," all set for global testing and release.
Co-CEO Park Byung-moo stated, "Based on our efforts over the past two years for structural improvement, we are designating this year as the year of innovation for NCSoft. As our business structure becomes more predictable and steadily growing, we ask for your continued support for our future achievements."
* This article has been translated by AI.
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