NCsoft Releases Q1 2009 Earnings Results

Korean MMO giant NCsoft released today its first quarter earning results for 2009, showing significant profit increases in the Asian market, while the North American figures are still spiraling down from 17% market share in 2006 to the current 8%.

The report also noted Aion's upcoming Western market release and beta tests for new titles: Punch Monster, Dragonica, Steel Dog and Metal Black "within the year". Full report below:

Seoul, South Korea -- May 11, 2009 -- NCsoft® Corporation (KSE: 036570.KS) today reported earnings results for 2009 Q1. On a consolidated basis, sales came to KRW 133.4 billion ($USD 107.7 million/€EUR 79.2 million), operating profit KRW 42.5 billion ($USD 34.3 million/€EUR 25.2 million), and net profit KRW 33.5 billion ($USD 27.0 million/€EUR 19.9 million). Sales, operating profit, and net profit showed sharp escalations with an increase of 34%, 221% and 422% respectively quarter over quarter (QoQ).

NCsoft explained that substantial increase in profit was based on solid maintenance of Lineage and Lineage II sales, in addition to Aion sales. The decrease in marketing spend and the narrow increase in operating costs QoQ (6%) resulted in the drastic growth of operating profit.

By region, first quarter sales came to KRW 89.2 billion in Korea ($USD 72.0 million/€EUR 53.0 million), KRW 10.8 billion in North America ($USD 8.7 million/€EUR 6.4 million) KRW 4 billion in Europe ($USD 3.2 million/€EUR 2.3 million), KRW 18.1 billion in Japan ($USD 14.6 million/€EUR 10.7 million), KRW 3.9 billion in Taiwan ($USD 3.1 million/€EUR 2.3 million), and KRW 7.4 billion ($USD 5.9 million/€EUR 4.3 million) from royalties. The successful launch of Aion influenced sales growth in Korea and expected sales of the Lineage series increased the significance of Japan. On the other hand, a decrease in Guild Wars sales due to no retail expansion package releases this quarter led to a drop of sales in the North American and European regions.

By game titles, sales of Lineage, Lineage II, Aion, City of Heroes®, and Guild Wars® increased 23%, 33%, 34%, 5% and 3% quarter to quarter to KRW 29.4 billion, KRW 41.1 billion, KRW 42.6 billion, 6.8 billion and KRW 4.3 billion respectively.

NCsoft's CFO Jaeho Lee said, "Aion has solidified its position as a new growth force without encroaching sales of the Lineage series. Starting with its service in China in Q2, we are ready for a successful launch of this triple-A franchise in Japan, Taiwan, North America and Europe within the second half of the year."

NCsoft is expected to carry out large-scale updates for Lineage and Lineage II worldwide in the coming months. In Eastern territories NCsoft expects to begin beta tests for Punch Monster, Dragonica, Steel Dog and Metal Black within the year.

About NCsoft

NCsoft, headquartered in Seoul, Korea, is the world's premier publisher and developer of massively multiplayer online games, including the critically acclaimed City of Heroes®, Guild Wars® and Lineage® franchises. NCsoft West is a division of NCsoft that holds operating responsibilities for North America, Europe, South America and Australia/New Zealand. More information can be found at http://us.ncsoft.com/.

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