NCSOFT sees profit plummet on higher sales

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NCSOFT sees profit plummet on higher sales

NCSOFT Corp., South Korea’s biggest online game publisher, reported a weak performance in the second quarter.

Sales actually increased 7.52 percent on-year to 258.6 billion won ($229.4 million) during the April-June period, the company said in a regulatory filing Monday.

Despite the rise in sales, net profit was 30.8 billion won, down 65.91 percent from the previous year, the company said. Operating income also shrank 56.39 percent on-year to 30.8 billion won.

The figures were far below the market consensus of 300 billion won for sales and 60 billion won for operating income.

The weaker-than-expected second-quarter earnings were in part due to the poor performance of the company’s computer game business despite the popularity of the mobile version of its mega-hit game “Lineage M,” industry sources said.

“Lineage M,” which was released in June in the local market, had more than 7 million users as of July. It has a very high degree of visual resolution, yet feels like the original “Lineage.”

Sales of “Lineage M” are expected to be reflected in the third quarter.

By product, sales of “Lineage” came to 33.8 billion won in the second quarter, followed by “Lineage 2” with 16.7 billion won. Revenues from the mobile game business came to 93.7 billion won, accounting for 36 percent of the total.

By region, sales came in at 170.4 billion won in Korea, 28.7 billion won in North America and Europe, 10.5 billion won in Japan and 9.3 billion won in Taiwan.

NCSOFT shares rose 3.09 percent, or 11,500 won, to 384,000 won.

Yonhap


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