In This Article:
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Revenue: KRW401.9 billion, up 9% QoQ, down 5% YoY.
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Operating Loss: KRW14.3 billion, negative QoQ and YoY.
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Pre-tax Loss: KRW32 billion, impacted by foreign currency losses.
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Net Loss: KRW26.5 billion.
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Mobile Game Sales: KRW253.4 billion, up 16% QoQ.
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Online PC Game Sales: KRW80.7 billion, down 6% QoQ.
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Royalty Sales: KRW38.1 billion, up 1% QoQ.
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Operating Costs: KRW416.2 billion, up 16% QoQ and 2% YoY.
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Labor Cost: KRW201.1 billion, up 7% QoQ and 1% YoY.
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Marketing Costs: KRW48.7 billion, up 180% QoQ and 76% YoY.
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Depreciation: KRW26.5 billion, down 5% QoQ and 9% YoY.
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Variable Costs and Other Expenses: KRW139.9 billion, up 10% QoQ, down 8% YoY.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Q3 mobile game sales rose 16% QoQ, driven by a 49% increase in Lineage M sales.
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Royalty sales grew 1% QoQ, with TL's early access packs surpassing internal projections.
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NCsoft Corp (XKRX:036570) is diversifying its portfolio with new titles across various genres and platforms.
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The company is expecting strong results from the upcoming release of Journey of Monarch in Q4.
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NCsoft Corp (XKRX:036570) is implementing a new dedicated development studio system to enhance creativity and speed up new IP development.
Negative Points
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Q3 sales were down 5% YoY, and the company reported an operating loss of KRW14.3 billion.
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Pre-tax loss was KRW32 billion, influenced by foreign currency losses due to a weak dollar.
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Operating costs increased by 16% QoQ, with marketing costs rising 180% QoQ.
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The company has initiated a voluntary resignation program and shut down six projects to address high fixed costs.
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NCsoft Corp (XKRX:036570) faces challenges in maintaining sales growth and managing high fixed costs, impacting profitability.
Q & A Highlights
Q: Can you provide high-level guidance on AION 2 and its approach compared to TL's global launch? A: AION 2 will take a different approach than TL, focusing on global markets with unique game design, combat, monetization, and marketing strategies. It emphasizes PBE content and aims to set new standards in content quality and size. Further details will be announced next year. - Won Jun Hong, CFO
Q: What are the headcount goals following the restructuring and reorganization initiatives? A: The current headcount is over mid-4,000, concentrated at HQ. We aim to reduce this to around 3,000 by next year to address fixed cost issues and operating leverage effects. - Won Jun Hong, CFO