NCSoft FY2024 Q3 Earnings Release

Nov, 2024 Q3 2024 Earnings Release
November 4, 2024 NCSOFT IR

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The financial results for Q3 2024 have been prepared on an unaudited basis and may be
subject to change during an independent auditing process.
Please note that NCSOFT will not be responsible for individual investment decisions based
on this material.
※ Key Consolidated Subsidiaries (based on K -IFRS):
NCSOFT Corporation(HQ, KOR), NC West Holdings(100%, USA),
NC America(100%, USA), NC Europe(100%, GBR), NC Japan(100%, JPN),
NC Taiwan(100%, TWN), NCSOFT Service(100%, KOR), NC Dinos(100%, KOR),
NC ITS(100%, KOR), This Game Studio(40%, CAN), NC Vietnam Visual Studio(100%, VNM)
NCSOFT Asia Holdings(100%, SG)

Disclaimer

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Contents
I. Consolidated Earnings
1. Financial Highlights
2. Sales Breakdown
3. Cost Breakdown
II. Appendix
4. Consolidated Financial Statements

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1. Financial Highlights
Quarterly Performance
(Unit : KRW MN)
Sales posted KRW 401.9 billion, up 9% qoq but down 5% yoy
Operating loss totaled KRW 14.3 billion, marking a transition to a loss qoq and yoy
↑ 9% QoQ
↓ 5% YoY
TTR QoQ
TTR YoY
TTR QoQ
TTR YoY
423,108 437,709 397,911 368,869 401,937
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Sales
16,527
3,853
25,723
8,844
(14,291)
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Operating Profit
46,194
(20,368)
78,365 84,912
(32,036)
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Pre -tax Income
44,004 25,190
57,122 71,107
(26,524)
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Net Income
TTR QoQ
TTR YoY

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Mobile game sales rose 16% qoq to KRW 253.4billion, representing 63% of total sales, driven by the strong performance of Lineage M
PC online game sales dropped 6% qoq to KRW 80.7 billion, accounting for 20% of total sales
2. Sales Breakdown (by Game)
Mobile Games
(Unit : KRW MN)
PC Online Games
(Unit : KRW MN)
119,614 118,600 105,125 106,974
158,891
54,926 72,869
55,872 42,289
43,143
90,077
98,555
82,857
65,472
46,866
9,232
8,874
5,582
3,493
4,491
273,848
298,899
249,436
218,228
253,391
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Lineage M Lineage 2M Lineage W Blade & Soul 2
26,402 21,324 24,250 24,554 26,455
20,527 22,310 23,460 21,221 20,216
19,257 15,203 14,256 13,113 11,820
6,034
5,016 4,120 3,832 3,220
20,977
23,860 25,370 23,480 19,016
93,196 87,712 91,456 86,200 80,727
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Lineage Lineage 2 AION Blade & Soul Guild Wars 2 Total
* Not including other mobile games * Not including other PC online games

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2. Sales Breakdown (by Region)
Korea sales grew by 19% qoq to KRW 286.2 billion, led by the uplift from Lineage M
Overseas and royalty sales declined by 10% qoq to KRW 115.7 billion, representing 29% of total sales
3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Total 423,108 437,709 397,911 368,869 401,937
Royalty 35,289 30,578 32,686 37,668 38,107
NA/EU 33,073 37,937 36,637 33,950 28,242
Asia 78,376 84,691 69,164 56,926 49,378
Korea 276,370 284,504 259,424 240,324 286,210
423,108 437,709 397,911 368,869 401,937
Sales by Region
(Unit : KRW MN)

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3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Total 406,581 433,856 372,188 360,025 416,228
Variables & Others 151,379 162,546 134,740 126,795 139,949
D&A 29,285 26,803 27,767 27,879 26,504
Marketing 27,658 40,304 6,901 17,378 48,656
Labor 198,258 204,203 202,780 187,973 201,120
406,581 433,856
372,188 360,025
416,228
Total operating expenses for Q3 recorded KRW 416.2 billion, up 16% qoq and 2% yoy
Labor cost was KRW 201.1 billion, up 7% qoq and 1% yoy
Marketing expenses increased 180% qoq to KRW 48.7 billion, due to large game updates and advertising for anew title
Variables and other costs rose 10% qoq to KRW 139.9 billion, due to factors such as increased mobile game distribution fees
3. Cost Breakdown
Cost Breakdown
(Unit : KRW MN)

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FY 2023 3Q 24
Liabilities
I. Current Liabilities 614,287 365,031
Borrowings 239,954 –
Account payables 78,084 77,730
Lease liabilities 39,958 46,727
Current tax liabilities 1,537 98
Other current liabilities 254,754 240,476
Other provisions – –
II. Non -current Liabilities 526,484 522,956
Debentures and borrowings 169,691 169,771
Defined benefit obligations 5,819 1,081
Long -term employee benefits 23,075 25,418
Lease liabilities 192,673 162,755
Others 135,227 163,931
Total Liabilities 1,140,772 887,987
Shareholders Equity
Capital Stock 10,977 10,977
Other Paid -in Capital (189,424) (365,103)
Other Components of Equity (44,503) (34,997)
Retained Earnings 3,472,647 3,500,750
Non -controlling Interest 3,332 4,096
Total Stockholders Equity 3,253,029 3,115,722
Total Liabilities and
Shareholders Equity 4,393,800 4,003,709
Statement of Financial Position
4. Consolidated Financial Statements
(Unit : KRW MN)
FY 2023 3Q 24
Assets
I. Current Assets 2,336,839 1,780,032
Cash and cash equivalents 365,200 949,375
Short -term financial instruments 1,167,467 333,364
Account receivables 132,703 213,421
Other receivables 39,637 47,860
Short -term investment assets 585,401 196,507
Others 46,431 39,505
II. Non -current Assets 2,056,962 2,223,677
Long -term loans 7,347 7,298
Other receivables 21,281 21,842
Long -term investment assets 640,388 819,311
Investment stock in
associated companies 24,887 49,976
Investment property 88,900 87,793
Tangible assets 1,000,513 998,392
Intangible assets 96,109 102,338
Others 177,537 136,728
Total Assets 4,393,800 4,003,709

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3Q 23 4Q 23 1Q 24 2Q 24 3Q 24
Sales 423,108 437,709 397,911 368,869 401,937
Operating Expenses 406,581 433,856 372,188 360,025 416,228
Operating Income 16,527 3,853 25,723 8,844 (14,291)
Non -operating Income 29,667 (24,221) 52,642 76,069 (17,744)
Pre -tax Income 46,194 (20,368) 78,365 84,912 (32,036)
Income Tax 2,190 (45,558) 21,244 13,806 (5,512)
Net Income 44,004 25,190 57,122 71,107 (26,524)
Equity Attribution to the
Owners of the Parent Company 43,611 24,953 57,176 70,994 (26,500)
Non -controlling Interest 393 237 (55) 112 (23)
4. Consolidated Financial Statements
Income Statement
(Unit : KRW MN)