NCSoft FY2024 Q4 Earnings Release

Q4 2024 Earnings Release
2025. 2. 12 NCSOFT IR

2
The financial results for Q4 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), NC IDS (100%, KOR), NC QA (100%, KOR)

Disclaimer

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

4
1. Financial Highlights (Quarterly)
3,853 25,723 8,844
(14,291)
(129,491)
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Operating Profit
N/A QoQ
TTR YoY
↑2% QoQ
↓ 6% YoY
Quarterly Performance
(Unit : KRW MN)
437,709 397,911 368,869 401,937 409,407
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Sales
N/A QoQ
TTR YoY
N/A QoQ
N/A YoY
(20,368)
78,365 84,912
(32,036) (10,334)
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Pre -tax Income
Sales posted KRW 409.4 billion, up 2% QoQ and down 6% YoY
Operating loss totaled KRW 129.5 billion due to increased key operating expenses
25,190
57,122 71,107
(26,524) (7,588)
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Net Income

5
2,571,792
559,006 609,051
435,990
1,779,833
137,284 206,228 213,914
1,578,123
(109,215)
120,908 94,116
Sales Operating Profit Pre-tax Income Net Income
2022 2023 2024
Full -year 2024 sales recorded KRW 1,578.1 billion (YoY -11%) and operating loss was KRW 109.2 billion (TTR YoY)
1. Financial Highlights (Yearly)
Performance of Past 3 Years
(Unit : KRW MN)
TTR YoY
↓11% YoY
↓ 41% YoY ↓ 56% YoY

6
Q4 mobile game sales declined by 15% QoQ to KRW 215.6 billion, representing 53% of total sales
Q4 Online PC game sales increased 16% QoQ and 6% YoY to KRW 93.4 billion, accounting for 23% of total sales
2. Quarterly Sales Breakdown (By Game)
118,600 105,125 106,974
158,891 121,770
72,869
55,872 42,289
43,143
41,263
98,555
82,857
65,472
46,866
49,086
8,874
5,582
3,493
4,491
3,506
298,899
249,436
218,228
253,391
215,624
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Lineage M Lineage 2M Lineage W Blade & Soul 2
Mobile Games
(Unit : KRW MN)
21,324 24,250 24,554 26,455 22,943
22,310 23,460 21,221 20,216 20,569
15,203 14,256 13,113 11,820 11,195
5,016 4,120 3,832 3,220 13,967
23,860 25,370 23,480 19,016
24,720
87,712 91,456 86,200 80,727
93,394
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Lineage Lineage 2 AION Blade & Soul Guild Wars 2
PC Online Games
(Unit : KRW MN)
* Not including other mobile games * Not including other PC online games

7
Full -year 2024 mobile game sales declined 22% YoY to KRW 936.7 billion, accounting for 59% of total sales
Online PC game sales declined 2% YoY to KRW 351.8 billion, representing 22% of total sales
2. Annual Sales Breakdown (By Game)
516,464 496,115 492,760
391,471 262,863 182,567
970,803
414,014
244,280
55,553
27,402
17,071
1,934,292
1,200,394
936,679
2022 2023 2024
Lineage M Lineage 2M Lineage W Blade & Soul 2
Mobile Games
(Unit : KRW MN)
106,714 96,546 98,202
94,057 87,278 85,466
68,292 67,893 50,385
26,330 24,207 25,138
94,973 84,527 92,586
390,366
360,451 351,778
2022 2023 2024
Lineage Lineage 2 Aion Blade & Soul Guild Wars 2
PC Online Games
(Unit : KRW MN)
* Not including other mobile games * Not including other mobile games

8
2. Sales Breakdown (By Region)
Korea sales declined by 13% QoQ to KRW 248.5 billion
NA/EU sales grew 25% QoQ to KRW 35.4 billion, driven by the successful launch of the GW2 expansion pack
Royalty sales rose by 93% QoQ and 140% YoY to KRW 73.5 billion as TL’s global success was fully captured in 4Q
Quarterly
(Unit : KRW MN)
Yearly
(Unit : KRW MN)
2022 2023 2024
Total 2,571,792 1,779,833 1,578,123
Royalty 157,009 144,457 181,999
NA/EU 164,950 135,767 134,194
Asia 625,217 349,907 227,493
Korea 1,624,616 1,149,702 1,034,437
2,571,792
1,779,833 1,578,123
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Total 437,709 397,911 368,869 401,937 409,407
Royalty 30,578 32,686 37,668 38,107 73,538
NA/EU 37,937 36,637 33,950 28,242 35,366
Asia 84,691 69,164 56,926 49,378 52,025
Korea 284,504 259,424 240,324 286,210 248,479
437,709 397,911 368,869 401,937 409,407

9
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Total Cost 433,856 372,188 360,025 416,228 538,897
Variables & Others 162,546 134,740 126,795 139,949 143,236
D&A 26,803 27,767 27,879 26,504 25,931
Marketing 40,304 6,901 17,378 48,656 55,248
Labor 204,203 202,780 187,973 201,120 314,483
433,856
372,188 360,025
416,228
538,897
Full -year 2024 operating expenses totaled KRW 1,687.3 billion, up 3% YoY, while Q4 saw a 29% QoQ increase to KRW 538.9 billion
Labor costs increased 10% YoY to KRW 906.4 billion primarily on severance package payments following organizational efficienc y
initiatives. Marketing expenses rose by 51% YoY to KRW 128.2 billion, attributed to new title releases
3. Cost breakdown
Quarterly
(Unit : KRW MN)
Yearly
(Unit : KRW MN)
2022 2023 2024
Total 2,012,786 1,642,549 1,687,339
Variables & Others 870,691 622,787 544,720
D&A 106,010 111,866 108,080
Marketing 188,639 85,044 128,182
Labor 847,446 822,852 906,356
2,012,786
1,642,549 1,687,339

10
FY 2023 FY 2024
Liabilities
I. Current Liabilities 614,287 322,188
Borrowings 239,954 –
Account payables 78,084 70,549
Lease liabilities 39,958 45,845
Current tax liabilities 1,537 721
Other current liabilities 254,754 193,718
Liabilities held for sale – 11,354
II. Non -current Liabilities 526,484 568,165
Debentures and borrowings 169,691 169,805
Defined benefit obligations 5,819 1,263
Long -term employe benefits 23,075 21,033
Lease liabilities 192,673 163,806
Others 135,227 212,256
Total Liabilities 1,140,772 890,353
Shareholders Equity
Capital stock 10,977 10,977
Other paid -in capital (189,424) (365,222)
Other components of equity (44,503) (61,168)
Retained Earnings 3,472,647 3,473,871
Non -controlling interest 3,332 5,130
Total Stockholders Equity 3,253,029 3,063,589
Total Liabilities and
Stockholders Equity 4,393,800 3,953,941
Statement of Financial Position
4. Consolidated Financial Statements
(Unit : KRW MN)
FY 2023 FY 2024
Assets
I. Current Assets 2,336,839 1,788,537
Cash and cash equivalents 365,200 1,260,473
Short -term financial instruments 1,167,467 178,293
Account receivables 132,703 130,279
Other receivables 39,637 36,941
Short -term investment assets 585,401 39,816
Non -current assets held for sale – 87,425
Others 46,431 55,309
II. Non -current Assets 2,056,962 2,165,404
Long -term Loans 7,347 8,050
Other receivables 21,281 22,131
Long -term investment assets 640,388 813,452
Investment stock in
associated companies 24,887 50,198
Investment property 88,900 –
Tangible assets 1,000,513 997,620
Intangible assets 96,109 103,873
Others 177,537 170,079
Total Assets 4,393,800 3,953,941

11
4Q 23 1Q 24 2Q 24 3Q 24 4Q 24
Sales 437,709 397,911 368,869 401,937 409,407
Operating Expenses 433,856 372,188 360,025 416,228 538,897
Operating Income 3,853 25,723 8,844 (14,291) (129,491)
Non -operating Income (24,221) 52,642 76,069 (17,744) 119,156
Pre -tax Income (20,368) 78,365 84,912 (32,036) (10,334)
Income Tax (45,558) 21,244 13,806 (5,512) (2,746)
Net Income 25,190 57,122 71,107 (26,524) (7,588)
Equity Attribution to the
Owners of the Parent Company 24,953 57,176 70,994 (26,500) (7,455)
Non -controlling interest 237 (55) 112 (23) (134)
4. Consolidated Financial Statements
Income Statement
(Unit : KRW MN)
FY 2023 FY 2024
1,779,833 1,578,123
1,642,549 1,687,339
137,284 (109,215)
68,945 230,123
206,228 120,908
(7,686) 26,792
213,914 94,116
212,139 94,215
1,775 (100)