Sections

Find out how to kick start your games industry career

Get Your Free Ticket Today

NCsoft's tumbling Q2 profits balanced by Lineage M success

Sources claim mobile title was earning a peak of $11.5 million a day in its first month in South Korea

NCsoft's profits fell by 66% in the second calendar quarter, though the successful launch of Lineage M promised great things for the Korean publisher in mobile.

In the three-month period ended June 30, 2017, NCsoft earned ₩258.6 billion ($229 million) in revenue, 8% higher than the same quarter last year. However, net profit declined 66% to ₩30.8 billion ($27 million).

Rising costs played a significant role in the company's disappearing profits, with Labor Costs, for example, rising ₩22.1 billion ($19.6 million) over the prior year. However, the most significant increases were Distribution Fees, which increased from ₩112 million in Q2 last year to ₩28.7 billion ($25.4 million), and Marketing Costs, which rose from ₩5.1 billion to ₩24.1 billion ($21.4 million).

These higher costs were in part down to one of NCsoft's most significant products of recent years: Lineage M, which launched in South Korea on June 21. Despite launching less than ten days before the end of the accounting period, Lineage M contributed the majority of NCsoft's ₩93.7 billion ($83.1 million) mobile game revenue. In Q2 last year, the company earned just ₩183 million from smartphone games.

According to a report in the Korea Times, Lineage M has set revenue records for a smartphone game in South Korea: ₩13 billion ($11.5 million) in daily revenue as of July 1, with a source claiming the game had earned at least ₩250 billion ($222 million) in its first month.

Elsewhere, NCsoft's portfolio was a story of decline. Revenue from all of its major PC MMOs fell year-on-year: Aion, Guild Wars 2, Blade & Soul, Lineage 2 and, steepest of all, Lineage, which appears to have suffered from the launch of Lineage M.

Find out how to kick start your games industry career

Get Your Free Ticket Today

More stories

Lineage 2 M surpasses $152m in three months

NCSoft's Mobile MMORPG is currently only available in South Korea

By Rebekah Valentine

ArenaNet bracing for layoffs

Update: Layoffs confirmed to have occurred today as part of organization restructuring

By Rebekah Valentine

Latest comments

Sign in to contribute

Need an account? Register now.