NCSoft annunces the annual results of 2004
NCSoft, the popular developer of games like Lineage 2 and City of Heroes has published their annual results for 2004. They have achieved a great succes that year, here you have the press release:
NCsoft Announces Fiscal 2004 Results
Record amount of revenues reported; new titles scheduled for release in 2005
Seoul, South Korea, February 28, 2005˜NCsoft® Corporation (KSE: 036570.KS) , the world‚s leading developer and publisher of online computer games announced financial results from the fiscal year ended December 31, 2004. The Seoul-based game developer recorded total revenues of KRW (Korean Won) 246 billion (US$246 million), an increase of 48 percent over FY2003. It marked the first time that NCsoft has reached more than KRW 200 billion in revenues and marks the greatest annual revenue ever recorded in the Internet games industry in South Korea.
NCsoft also reported operating profit of KRW 108 billion (US$108 million) and net profit of KRW 77 billion (US$77 million), an increase of 97% in operating profit and 145% in net profit respectively over FY 2003. Profits from royalty earnings also topped KRW 37 billion (US$37 million).
For the fiscal quarter that ended December 31, 2004, revenues were KRW 62 billion (US$62 million), down two percent as compared to the third quarter of 2004. Operating profit was KRW 21 billion (US$21 million), down 25 percent from the previous quarter and net profit was KRW 13 billion (US$13 million), down 39 percent from the third quarter of 2004. Due to the Korean won‚s strength against the US dollar, profits from royalty earnings also declined by 6 percent to KRW 10 billion (US$10 million). The company attributes the losses to increasing labor costs and marketing costs. This is somewhat different from views held by some industry experts who expected the release of World of Warcraft, a competitive product, to have a negative impact on NCsoft‚s business. Those expectations proved untrue as total company revenues in Korea fell just one percent from the third quarter of 2004, even though the fourth quarter is typically a low-demand season.
NCsoft today also revealed its goals for the current fiscal year. The company plans to reach total revenues of KRW 305 billion, operating profit of KRW 110 billion and profits from royalty earnings of KRW 52 billion.
In Korea, NCsoft will be commercially launching new products Guild Wars® in the first half of 2005 and City of Heroes® in the second half of the year. Overseas, NCsoft has a more diversified plan. Guild Wars, which will be released as a retail product with no monthly subscription fee, launches in North America and Europe on April 28. City of Villains˙, the much anticipated sequel to the highly successful City of Heroes is expected to release later in the year as is the post-apocalyptic car combat game, Auto Assault˙.
NCsoft also highlighted its long-term business strategy, including these goals:
- Continue to be competitive in the existing massively multiplayer sector and gradually broaden its market.
- Develop an online games multi-platform strategy.
- Promote NCsoft‚s overseas business and establish a wider global publishing presence. That will lead to new online experiences for gamers worldwide.
These goals will have NCsoft focusing this fiscal year on developing competitive products, efficient business operations and exploring business expansion.
You can know more about NCSoft. Here