Operating profit in the first quarter was 25.7 billion won, a 68.5% decrease from the previous year.
Company buys back 100 billion won worth of treasury stocks.
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Kim Taek-jin (left) and Park Byung-moo, co-CEOs of NCSOFT/ Provided by NCSOFT,
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, ‘NCSOFT, which is undergoing organizational restructuring due to deteriorating performance, announced plans to sell its tower in Samsung-dong, Seoul by the end of the year. Through this, they aim to cover construction costs for the new headquarters and consider liquidating the assets of the current Pangyo R&D center to prevent further increase in real estate assets.’,
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, ‘On the 10th, Park Byung-moo, co-CEO of NCSOFT, stated during a first-quarter earnings conference call, “Efforts to improve management efficiency will start now.” Hong Won-joon, NCSOFT’s CFO, said, “The combined book value of the Pangyo R&D Center and Samsung-dong tower is 230 billion won, but we estimate their market value to be around 1 trillion won.”’,
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, ‘The day before, Park, the CEO, held an online briefing for all employees to share directions for voluntary resignations and division plans. The company plans to finalize voluntary resignations by the middle of this month and spin off some divisions within the year. Park stated, “We plan to reduce the headquarters staff from around 5,000 to the mid-4,000s” and added, “Except for key functions, we will outsource many roles to ensure internal balance.”’,
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, ‘NCSOFT turning to workforce reduction is due to the waning success of its flagship game ‘Lineage’ and the lackluster performance of the new game ‘Throne and Liberty (TL)’. NCSOFT reported a provisional 68.5% year-on-year decrease in operating profit to 25.7 billion won for the first quarter on a consolidated basis. Sales during the same period recorded 397.9 billion won, a 16.9% decrease.’,
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, ‘By platform, mobile game revenue decreased by 24.6% to 249.4 billion won compared to the same period last year (330.8 billion won). Revenue from Lineage M, Lineage 2M, and Lineage W all declined. PC/online game revenue remained at a similar level as last year, at 91.5 billion won. Royalty revenue totaled 32.7 billion won. By region, revenue was 259.4 billion won in Korea, 69.2 billion won in Asia, and 36.6 billion won in North America and Europe.’,
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, ‘CFO Hong remarked, “It is difficult to achieve significant results in terms of performance in 2024” and said, “This year, we are diversifying in three areas: IP, genres, and platforms while expanding globally to lay the foundation. I don’t expect significant changes in revenue or sales compared to the consensus.” He added, “From 2025, the situation will be different” and said, “Significant performance changes are expected from next year with games launching in the latter half of this year, and three global blockbuster games slated for launch next year.”’,
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, ‘NCSOFT plans to introduce ten new games by next year, starting with Battle Crush in June this year. Besides Battle Crush, they will release three new titles such as Project BSS and new genre games based on existing IPs this year. They will continue to expand service regions globally by launching TL globally, Blade & Soul 2 in China, and Lineage 2M in Southeast Asia.’,
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, ‘Park mentioned, “Next year, Aion 2, Project G, and LLL will be released” and stated, “Blade & Soul 2, which has obtained a license in China, is being completely reborn as a new game through cooperation with Tencent and is scheduled to be released as planned by the end of the year. We plan to establish joint ventures with Southeast Asian companies. This service area expansion will accelerate next year, and we are also progressing with developing existing IPs for consoles.”’,
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, ‘Park also announced plans to repurchase treasury stocks to enhance shareholder value. He said, “We plan to repurchase around 100 billion won worth of treasury stocks,” and “The proportion of treasury stocks acquired will be about 10%, and this will be used as future M&A funding.” He mentioned, “We plan to maintain a 10% treasury stock ratio, and we are seriously considering burning off any excess shares purchased beyond the 10%. Even the acquired 10% treasury stocks will be gradually burnt off if there are no M&A plans.” He added, “2024년은 실적 면에서 의미 있는 성과가 나오긴 어렵다고 본다.”’,
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