South Korean game developer NCSoft reported stronger-than-expected first-quarter earnings, fueled by the successful launch of “Aion 2” and steady revenue from “Lineage Classic,” helping the company achieve record quarterly revenue in its PC gaming business.
NCSoft said Tuesday that consolidated first-quarter revenue reached 557.4 billion won ($400 million), while operating profit came in at 113.3 billion won and net profit totaled 152.4 billion won.
Revenue rose 38% from the previous quarter and 55% year-on-year, with the company posting an operating margin of 20%.
The company’s PC game segment emerged as the main growth driver. PC game revenue climbed to 318.4 billion won, up 69% quarter-on-quarter and 210% from a year earlier.
“Aion 2,” which launched in November last year, generated quarterly revenue of 136.8 billion won. Meanwhile, “Lineage Classic” posted 83.5 billion won in sales during the quarter.
NCSoft said cumulative revenue from Lineage Classic reached 192.4 billion won during its first 90 days after launch, strengthening expectations for long-term performance.
The mobile gaming business maintained stable results despite growing competition in the MMORPG market. Mobile game revenue totaled 182.8 billion won.
According to the company, key user metrics for its flagship mobile MMORPG titles remained stable even after the launch of Lineage Classic, while “Lineage M” recorded quarter-on-quarter growth in both revenue and engagement indicators.
NCSoft also continued expanding its overseas business footprint. Regional revenue distribution showed South Korea accounting for 58% of sales, Asia 27%, and North America and Europe together contributing 15%.
As a result, overseas revenue accounted for 42% of total sales in the first quarter, up from 35% a year earlier.
The company’s business portfolio diversification strategy is also becoming more visible. For the first time, revenue from mobile casual games — totaling 35.5 billion won — was included in consolidated earnings following investments in game studios such as ReHooHoo and Springcomes.
Industry observers say the move reflects NCSoft’s efforts to reduce dependence on MMORPGs by expanding into broader gaming genres, including casual and hybrid titles.
NCSoft plans to accelerate its global expansion strategy in the second half of the year. The company said it will sequentially launch Aion 2 services in North America, South America, Europe, and Japan.
Several new intellectual properties, including “Cinder City,” “Limit Zero Breakers,” and “Time Takers,” are also expected to undergo global testing ahead of launch.
Analysts say the company’s ability to establish itself in newer genres such as shooters and subculture-themed games could become a key factor influencing second-half earnings performance.
