NCsoft sinks to red from July-September on expenses for new releases, updates

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NCsoft sinks to red from July-September on expenses for new releases, updates

Published: 04 Nov. 2024, 17:16

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NCsoft, a major Korean game developer, said Monday it shifted to a net loss in the third quarter due to a rise in operating costs caused by the release of new game titles and massive updates.

The company posted a net loss of 26.5 billion won ($19.3 million) in the July-September period, swinging from a net profit of 44 billion won a year earlier, according to its regulatory filing.

It also swung to an operating loss of 14.3 billion won from a profit of 16.5 billion won a year ago, while its sales fell 5 percent on year to 401.9 billion won.

The gamemaker said it turned to the red in the third quarter mainly due to increased operating costs to promote new games and the currency exchange rate conditions.

The company released a new massively multiplayer online role-playing game (MMORPG) title, Throne and Liberty, and switching role-playing game Hoyeon earlier this year.

NCsoft raised 286.2 billion won in revenue in Korea, 49.4 billion won in Asia, and 28.2 billion won in North America and Europe.

By game type, sales from mobile games increased 16 percent on year to 253.4 billion won, while sales from online computer games dropped 6 percent to 80.7 billion won.

As part of efforts to overcome sluggish performance, the company said it plans to establish four new firms through a split-off, including independent game studios and an artificial intelligence company.

The company plans to globally launch new titles, including shooter game LLL and MMORPG AION2, next year.

Shares in NCsoft rose 1.15 percent to 219,500 won on the main Seoul bourse, underperforming the broader Korea Composite Stock Price Index's 1.83 percent gain. The earnings were released after the stock market closed.

Yonhap