NCsoft sees solid revenue growth in Q3; overseas business expands
Korean MMOG publishing giant NCsoft has announced its financial results for the three months ended September 30th, revealing that the firm's revenues continue to grow strongly, especially in its overseas businesses.
Korean MMOG publishing giant NCsoft has announced its financial results for the three months ended September 30th, revealing that the firm's revenues continue to grow strongly, especially in its overseas businesses.
Total revenues for the quarter stood at 87.8 billion Won ($84.1 million), which is up by 10 per cent quarter-on-quarter, and 15 per cent year-on-year - with revenues from games, as opposed to from royalties, up by 22 per cent year on year.
The largest growth during the quarter was registed by the company's European operations, which were founded only a year ago and now account for 7 per cent of the company's global business, with revenues up 99 per cent in the past quarter alone.
Revenues in the United States grew by 33 per cent quarter on quarter, and the region now accounts for 22 per cent of sales, while the steady success of Lineage and Lineage II in Japan kept it at 9 per cent of sales.
Korea still commands the lion's share of revenues, with 55 per cent, but revenues there have been largely static, and the ratio of Korean sales to overseas sales has fallen to 55:45, from 59:41 in the previous quarter.
Looking at the quarter-on-quarter figures, NCsoft has made great strides in profitability, with operating profit up 34 per cent (to 23.2 billion Won / $22.2 million) and net profit up 57 per cent (to 20.4 billion Won / $19.5 million), although in year-on-year terms the figures are actually down 15 and 10 per cent respectively.
The Lineage series remains NCsoft's biggest source of revenue, with Lineage accounting for 35 per cent of revenue while Lineage II accounts for 36 per cent, but the newly released Guild Wars is already a major contributor - with Arena.Net's unique subcription-free title making up 21 per cent of the firm's revenue in the quarter.
Guild Wars has already sold over a million units following its successful launch in North America and Europe, and the first paid-for expansion for the game is expected to launch in early 2006.