General: NCsoft 2008 Fiscal Results

NCsoft has announced the company's financial results for the 2008 fiscal year in a recent press release.

NCsoft® Corporation (KSE: 036570.KS) today reported earning results for 2008. On a consolidated basis, sales came to KRW 346.6 billion (US$ 248.6 million), operating profit KRW 42.2 billion (US$ 30.3 million), and net profit KRW 27.2 billion (US$ 19.5 million). Sales increased 5% year over year, and operating profit, pre-tax profit, and net profit decreased 15%, 31% and 40% respectively.

For the fourth quarter 2008, consolidated net sales recorded KRW 99 billion (US$ 71.0 million), operating profit KRW 9.9 billion (US$ 7.1 million), pre-tax profit KRW 13 billion (US$ 9.3 million), and net profit KRW 8 billion (US$ 5.7 million). The previous quarter sales were KRW 78.3 billion (US$ 56.2 million), operating profit KRW 4.6 billion (US$ 3.3 million), pre-tax profit KRW 8.9 billion (US$ 6.4 million), and net profit KRW 5 billion (US$ 3.6 million). The sales and operating profit increased 26% and 117% respectively quarter over quarter and pre-tax profit and net profit increased 46% and 60% respectively.

Decrease in profit despite the increase in sales is primarily due to limited market exposure for Aion™, which launched later than expected in Korea, as well as increased marketing spend for the Aion launch and updates to the Lineage® series. Launched in November, Aion exceeded expectations in a short period on the market. This, plus the growth in Lineage series sales in Japan and the foreign exchange rate were the primary reasons for the quarter over quarter sales growth.

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