NCSOFT logo | Image by NCSOFT
NCSOFT (Co-CEOs Taekjin Kim and Byung-moo Park) announced Q3 2024 consolidated revenue of 401.9 billion KRW, with an operating loss of 14.3 billion KRW and a net loss of 26.5 billion KRW.
Revenue rose 9% compared to the previous quarter but decreased 5% year-over-year. Operating income turned negative due to rising expenses, including marketing costs. Net income also declined due to operating deficits and foreign exchange losses from currency fluctuations.
Operating expenses totaled 416.2 billion KRW, a 16% increase from the previous quarter and a 2% year-over-year rise. Marketing costs jumped to 48.7 billion KRW, up 180% from the prior quarter and 76% year-over-year, driven by marketing for new releases and major updates to live games.
Regional revenue comprised 286.2 billion KRW in Korea, 49.4 billion KRW in Asia, and 28.2 billion KRW in North America and Europe. Royalty revenue stood at 38.1 billion KRW.
Mobile game revenue rose by 16% quarter-over-quarter to 253.4 billion KRW. Lineage M saw a 49% quarter-over-quarter revenue increase, bolstered by the June release of the “Reboot World” update, with stable user metrics. PC online game revenue dropped 6% from the previous quarter, totaling 80.7 billion KRW.
Since its global launch on October 1, Throne and Liberty (TL) has surpassed 4.52 million global users, ranking as the top seller on Steam globally upon release and maintaining high revenue ranks across key markets. Blade & Soul also saw high traffic following the October release of its BNS NEO server.
NCSOFT bolsters future competitiveness by establishing four new entities in game development and new business sectors. The company is launching independent game development studios for its IPs TL, LLL, and TACTAN while founding an AI-specialized company to advance AI technology and business applications. Through these changes, NCSOFT aims to maximize creativity and innovation, building a foundation for sustainable growth.
NCSOFT focuses on expanding core IPs and acquiring new IPs. The Lineage-based new title Journey of Monarch is slated for Q4 2024. The company also plans global releases of AION2, LLL, and TACTAN in 2025.
Pangyo Techno Valley is a global integrated R&D hub focused on IT, BT, CT, and NT, integrating Research (R), People (P), Information (I), and Trade (T). As Gyeonggi-do’s representative innovation cluster, Pangyo Techno Valley was established to secure national new growth drivers such as technological innovation, human resource development, job creation, and enhancing international business competitiveness. As of 2023, 1,666 companies employ 78,751 people, and it has positioned itself as the most innovative hub in South Korea, with sales amounting to 167.7 trillion KRW (125.5 billion USD).
Furthermore, the Techno Valley Innovation Division of the Gyeonggi-do Business & Science Accelerator (GBSA) holds monthly events such as the Pangyo Evening Meet-Up, Pan-Pan Day, and the Pangyo Startup Investment Exchange “In-Best Pangyo” to maximize the value of Pangyo Techno Valley. They also support the Pangyo Overseas Promotion Program to publicize information about Pangyo’s companies, products, and services to domestic and foreign investors and the media, thereby facilitating foreign investment.
