Ncsoft Announces Fiscal Year 2007 Results
Company: NCSOFT
Thursday 14th February/... Seoul, South Korea – NCsoft® Corporation (KSE: 036570.KS) today reported earning results for 2007. On a consolidated basis, sales came to KRW 330 billion (US$355.1 million), operating profit KRW 49.5 billion (US$53.3 million), pre-tax profit KRW 62.1 billion (US$66.8 million), and net profit KRW 45 billion (US$48.4 million). Although the company saw its sales drop 3% year over year, operating profit, pre-tax profit, and net profit increased 14%, 24% and 18%, respectively.

For the fourth quarter 2007, consolidated net sales recorded KRW 89.1 billion (US$95.9 million), operating profit KRW 12.1 billion (US$13.0 million), pre-tax profit KRW 14.1 billion (US$15.2 million), and net profit KRW 10.3 billion (US$11.1 million). The previous quarter sales were KRW 80.1 billion, operating profit KRW 9.7 billion, pre-tax profit KRW 13.7 billion, and net profit KRW 10.1 billion. The sales and operating profit increased 11% and 24% respectively quarter over quarter and pre-tax profit and net profit increased 3% and 2% respectively. Sustained sales from the Lineage® series and the release of Richard Garriott’s Tabula Rasa® in November 2007 were the primary reasons for the quarter over quarter sales growth.

By region, fourth quarter sales came to KRW 52.6 billion (US$56.6 million) in Korea, KRW 15.1 billion (US$16.3 million) in North America, KRW 8.5 billion (US$9.1 million) in Japan, KRW 7.2 billion (US$7.7 million) in Europe, and KRW 2.5 billion (US$2.7 million) in Taiwan. Compared to the previous quarter, Korea and North America recorded 21% and 11% increases respectively, and Japan saw an increase of 9% from the previous quarter thanks to the release of the recent Lineage II content update. The percentage breakdown of sales by region shows 59% in Korea, 17% in North America, 9% in Japan, 8% in Europe, 3% in Taiwan, and 4% from royalty income. Of total sales, 41% was derived from overseas.

By game titles, sales of Lineage and Lineage II increased 35% and 4% quarter to quarter to KRW 31.8 billion (US$34.2 million) and KRW 33.8 billion (US$36.4 million) respectively, while City of Heroes®/City of Villains® and Guild Wars® saw their respective sales drop 6% and 29% to KRW 5.4 billion (US$5.8 million) and KRW 9.2 billion (US$9.9 million). It’s important to note that Q307 results included the successful launch of Guild Wars: Eye of the North™, whereas there were no Guild Wars related launches in Q407.

Launched in the fourth quarter, Richard Garriott’s Tabula Rasa recorded sales of KRW 5 billion (US$5.4 million). The percentage breakdown of sales by game title shows Lineage, Lineage II with 37% and 39%, respectively, followed by Guild Wars with 11%, City of Heroes/City of Villains with 6% and Richard Garriott’s Tabula Rasa with 6%.

NCsoft expects to reach a 6~15% year to year increase in sales to KRW 350~380 billion, and 15~33% increase in operating profit to KRW 57~66 billion for fiscal 2008. This year NCsoft plans to launch official service for Aion® along with a variety of casual online games in Korea including Point Blank™, Punch Monster™, Dragonica™ and Love Beat™.

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