taultunleashed logoTR - NCsoft Announces Fiscal Year 2007 Results : FPS / MMORPG / RTS Discussion
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TR - NCsoft Announces Fiscal Year 2007 Results : FPS / MMORPG / RTS Discussion

Posted: February 14th, 2008, 7:51 am

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Company reports consolidated sales of KRW 330 billion in 2007, operating profit of KRW 49.5 billion Operating profit, pre-tax profit and net profit show increase year over year

Note: 1USD = 929.20 Korean Won (KRW)

Seoul, South Korea, February 13, 2008 – NCsoft® Corporation (KSE: 036570.KS) today reported earning results for 2007. On a consolidated basis, sales came to KRW 330 billion (US$355.1 million), operating profit KRW 49.5 billion (US$53.3 million), pre-tax profit KRW 62.1 billion (US$66.8 million), and net profit KRW 45 billion (US$48.4 million). Although the company saw its sales drop 3% year over year, operating profit, pre-tax profit, and net profit increased 14%, 24% and 18%, respectively.

For the fourth quarter 2007, consolidated net sales recorded KRW 89.1 billion (US$95.9 million), operating profit KRW 12.1 billion (US$13.0 million), pre-tax profit KRW 14.1 billion (US$15.2 million), and net profit KRW 10.3 billion (US$11.1 million). The previous quarter sales were KRW 80.1 billion, operating profit KRW 9.7 billion, pre-tax profit KRW 13.7 billion, and net profit KRW 10.1 billion. The sales and operating profit increased 11% and 24% respectively quarter over quarter and pre-tax profit and net profit increased 3% and 2% respectively. Sustained sales from the Lineage® series and the release of Richard Garriott’s Tabula Rasa® in November 2007 were the primary reasons for the quarter over quarter sales growth.

By region, fourth quarter sales came to KRW 52.6 billion (US$56.6 million) in Korea, KRW 15.1 billion (US$16.3 million) in North America, KRW 8.5 billion (US$9.1 million) in Japan, KRW 7.2 billion (US$7.7 million) in Europe, and KRW 2.5 billion (US$2.7 million) in Taiwan. Compared to the previous quarter, Korea and North America recorded 21% and 11% increases respectively, and Japan saw an increase of 9% from the previous quarter thanks to the release of the recent Lineage II content update. 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. Of total sales, 41% was derived from overseas.

By game titles, sales of Lineage and Lineage II increased 35% and 4% quarter to quarter to KRW 31.8 billion (US$34.2 million) and KRW 33.8 billion (US$36.4 million) respectively, while City of Heroes®/City of Villains® and Guild Wars® saw their respective sales drop 6% and 29% to KRW 5.4 billion (US$5.8 million) and KRW 9.2 billion (US$9.9 million). It’s important to note that Q307 results included the successful launch of Guild Wars: Eye of the North™, whereas there were no Guild Wars related launches in Q407.

Launched in the fourth quarter, Richard Garriott’s Tabula Rasa recorded sales of KRW 5 billion (US$5.4 million). 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%.

NCsoft expects to reach a 6~15% year to year increase in sales to KRW 350~380 billion, and 15~33% increase in operating profit to KRW 57~66 billion for fiscal 2008. This year NCsoft plans to launch official service for Aion® along with a variety of casual online games in Korea including Point Blank™, Punch Monster™, Dragonica™ and Love Beat™.

NCsoft, the interlocking NC logo, Lineage, Guild Wars, Guild Wars: Eye of the North, Richard Garriott’s Tabula Rasa, City of Heroes, City of Villains, Aion, Point Blank, Punch Monster, Dragonica, Love Beat, PlayNC, PlayNC.com and all associated logos and designs are trademarks or registered trademarks of NCsoft Corporation. All other trademarks are the property of their respective owners.

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