Tough Christmas ends disappointing year for NCsoft

NCsoft failed to improve on the strong Christmas it enjoyed in 2012, with sales, profit and net income down year-on-year in Q4 2013.

The company’s earnings for the three months ending December 31st were a big improvement over the previous quarter, which saw sales, profits and net income drop compared to Q2, but failed to match the highs of the previous Christmas.

Sales for the three months ending December 31st, 2013 came in at 210bn South Korean won (£118.4m); up 24 per cent on Q3, but down 26 per cent year-on-year. Net income, meanwhile, fared better: up 74 per cent quarter-on-quarter to 45.7bn won (£25.7m), but down 55 per cent from Q4 2012. Operating profit showed the best improvement, rising to 56.7bn won (£32m) – up 85 per cent since the last quarter, but down 50 per cent year-on-year.

For the full year, revenues and net income remained relatively flat at 756.7bn won (£426.7m) and 158.6bn (£89.4m), although operating income saw a 36 per cent increase thanks to cost savings made for labour and marketing.

Lineage 1 continues to be NCsoft’s best-seller, generating 287.9bn won (£162.3m) in sales, but flagship release Guild Wars 2 saw sales drop by 25 per cent year on year, generating 123.3bn won (£69.5m) in 2013.