NCSoft profit bounces back with 59% of revenue on mobile but not all Lineage games are thriving

• NCSoft generated $268.3 million in revenue in Q2 2024
• Profits were up to $51.7 million

South Korean games maker NCSoft generated ₩368.9 billion ($268.3 million) in revenue during its second quarter of 2024, 59% of which came from its mobile games catalogue.

That equated to ₩218.2 billion ($158.7 million) in mobile revenue, down 13% quarter-on-quarter due to "adjustments in business activities" and declining revenue in certain Lineage titles.

The original Lineage M was NCSoft’s most successful mobile game of the quarter, having earned ₩107 billion ($77.8 million) a slight rise from ₩105.1 billion ($76.4 million) in Q1. However, the title’s revenue did decline year-on-year from ₩127.8 billion ($92.9 million) in Q2 2023.

A long Lineage

Year-on-year revenue also declined in mobile titles Lineage W and Lineage M2, and unlike NCSoft’s flagship, they fell quarter-on-quarter too. Lineage W was the company’s second-most lucrative mobile game of Q2, earning ₩65.5 billion ($47.6 million) compared to ₩82.9 billion ($60.3 million) in Q1 and ₩102.8 billion ($74.8 million) in Q2 2023.

Lineage M2 ranked third at ₩42.3 billion ($30.8 million), down from ₩55.9 billion ($40.7 million) in Q1 and ₩62 billion ($45.1 million) in Q2 2023.

Conversely, Lineage on PC saw sales growth in Q2 2024, generating a smaller sum than its mobile sister titles but forming a more positive trend overall. The PC title earned ₩24.6 billion ($17.9 million) this Q2, up from approximately ₩24.3 billion ($17.7 million) in Q1 and Q2 2023.

Overseas and quarterlies

NCSoft made ₩368.9 billion ($268.3 million) in sales across platforms in Q2 2024, down 7% quarter-on-quarter and 16% year-on-year. Quarterly sales declined at the same rate in its home country Korea and overseas, contributing ₩240.3 billion ($174.7 million) and ₩128.5 billion ($93.5 million) respectively - both down 7%.

This meant 35% of the company’s Q2 sales came from the overseas market.

Operating profit fell too, decreasing 66% quarter-on-quarter and 75% year-on-year to ₩8.8 billion ($6.4 million). And yet, the quarter marked NCSoft’s best net income in over a year, at ₩71.1 billion ($51.7 million). This was an increase of 24% quarter-on-quarter and 133% year-on-year, rebounding after 2023’s 75% fall in profit.