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NCsoft Fiscal 2007 Results News
Chris Leyton
14/02/2008
Despite a drop in sales for the year, NCsoft records increases in operating profit and net profit...
Despite seeing a 3% reduction in sales, Korean online publisher NCsoft today reported increases in operating profit, pre-tax profit and net profit during its fiscal year 2007 report.
For the fiscal year period, sales came to KRW 330 billion (£178.68 million), operating profit KRW 49.5 billion (£26.80 million), pre-tax profit KRW 62.1 billion (£33.62 million), and net profit of KRW 45 billion (£24.37 million).
Sustained sales of the Lineage series along with the release of Richard Garriot's Tabula Rasa ensured a good Q4 period for the publisher, with net sales standing at KRW 10.3 billion (£5.58 million), operating profit of KRW 12.1 billion (£6.55 million), and net profit of KRW 10.3 billion (£5.58 million).
Highlighting the strength of NCsoft's position in Korea, regional breakdown of sales for the fourth quarter came to KRW 52.6 billion (£28.48 million) in Korea, KRW 15.1 billion (£8.18 million) in North America, KRW 8.5 billion (£4.60 million) in Japan, KRW 7.2 billion (£3.90 million) in Europe, and KRW 2.5 billion (£1.35 million) in Taiwan. The percentage breakdown of sales by region shows 59% in Korea, 17% in North America, 9% in Japan, 8% in Europe, 3% in Taiwan, and 4% from royalty income.
By game titles, sales of Lineage and Lineage II increased 35% and 4% quarter to quarter to KRW 31.8 billion (£17.22 million) and KRW 33.8 billion (£18.30 million) respectively. City of Heroes/City of Villains and Guild Wars both saw their respective sales drop 6% and 29% to KRW 5.4 billion (£2.92 million) and KRW 9.2 billion (£4.98 million).
Released during the fourth quarter, Richard Garriott's Tabula Rasa recorded sales of KRW 5 billion (£2.71 million), suggesting that the MMO population has surpassed the 100,000 mark. The percentage breakdown of sales by game title shows Lineage, Lineage II with 37% and 39%, respectively, followed by Guild Wars with 11%, City of Heroes/City of Villains with 6% and Richard Garriott's Tabula Rasa with 6%.
For the year ahead, NCsoft expects to reach a 6-15% year to year increase in sales to KRW 350-380 billion (£189.51-205.75 million), and 15-33% increase in operating profit to KRW 57-66 billion (£30.86-35.74 million) for fiscal 2008.
Alongside updates to existing titles, NCsoft will release its next big MMO Aion during the year.
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