2Q 2010 arn ngs Release Aug 13, 2010 NCSOFT Corporation

Transcription

1 2Q 2010 Earnings Release Aug 13, 2010 NCSOFT Corporation Samsung-dong, Kangnam-gu, Seoul , KOREA Tel: Fax : Copyright c NCSOFT Corporation. All Rights Reserved

2 Disclaimer The financial results for 2Q of 2010 have been prepared on an un-audited basis, and may be subject to change during independent auditing process. Some of the information and data in the material have been prepared based on assumptions. There can be no assurance that the assumptions used by NCSOFT are correct and even if they are, that the effect of such assumptions on NCSOFT s business and results of operations will be as projected. Therefore, NCSOFT will not be responsible for individual investment decisions based solely on this material. Consolidated subsidiaries : NC Interactive(100%), NC Europe(100%), NC Japan(60%), NC Taiwan(85%). 2

3 Contents I. Consolidated Earnings 1. Financial Highlights 2. Sales Breakdown 3. Costs Breakdown Ⅱ. Appendix 4. Parent Earnings 5. Summarized Financial Statements 3

4 1. Financial Highlights Top line remained solid thanks to record high h Lineage. Pre-tax Income dropped reflecting the result of lawsuit against Richard Garriott. 200, , , ,776 Sales 197, , , , % QoQ 22% YoY 100,000 80,000 60, ,000 47,463 Operating Profit 56,569 87,510 76,729 70,718 8% QoQ 49% YoY 50,000 20,000 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 2Q 09 3Q 09 4Q 09 1Q 10 2Q ,000 80,000 60,000 40,000 20,000 48,092 Pre-tax Income 57,450 89,275 78,400 41,932 47% QoQ 13% YoY 100,000 80,000 60,000 40,000 20,000 33,754 46,877 Net Income 70,017 58,237 30,392 48% QoQ 10% YoY 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 4

5 2. Sales Breakdown Lineage recorded d historical i high h with micro-transaction i model after 12 years of service. Aion decreased due to increased inactive users in overseas market 180, , ,000 90,000 60,000 30, ,776 Sales by Region 167, ,570 10,058 (6%) 12,784 (8%) 6,183 (4%) 5,536 (3%) 18,822 (11%) 17,805 (11%) 180, ,000 18,710 (14%) 11,256 (7%) 8,522 (5%) 119, ,000 4,013 (3%) 1,758 (1%) 12,892 (8%) 14,936 (9%) Royalties 5,179 (4%) 6,673 (6%) 20,949 (15%) Taiwan 4,242 (3%) 10,664 (8%) 79,199 (57%) Japan Europe N. America Korea 108,236 (65%) 107,987 (64%) 90,000 60,000 30, ,607 (34%) 37,368 (31%) 27,481 (23%) Sales by Games (excluding royalty) 157, ,786 (2%) 3,348 2,382 3,255 (2%) 2,679 (2%) (2%) 5,120 (3%) 3,491 (2%) 71,235 (45%) 62,368 (40%) 29,662 (19%) 29,903 (19%) 47,507 (30%) 51,225 (33%) 2Q 09 1Q 10 2Q 10 2Q 09 1Q 10 2Q 10 Oh Others GW COH/V AION L2 L1 L1 : Lineage 1 L2 : Lineage 2 COH/V : City of Heroes/Villains GW : Guild Wars 5

6 3. Costs Breakdown Headcount and legal related fees increased, which drove up operating expense. 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 QoQ YoY Payroll 44,166 53,086 53,312 48,642 50,316 3% 14% Sales variables costs 12,494 14,485 14,439 9,595 10,046 5% -20% - Royalties 2,629 1,935 2,112 1,793 2,247 25% -15% - Payment processing fees 4,705 5,282 6,628 5,743 5,270-8% 12% - Sales commissions 3,555 2,733 2, % -99% - Box production costs 857 3,709 1, ,376 88% 61% - Other variables ,110 79% 48% Advertising 2,813 8,751 4,681 1,407 1,856 32% -34% D&A 5,831 6,950 7,586 5,715 6,188 8% 6% Others(*) 25,009 26,440 29,748 25,360 28,447 12% 14% Total 90, , ,765 90,718 96,852 7% 7% * 2Q10 Others : Bandwidth(2,801), Rent(2,284), Wage for outsourced staff(4,359), Outsourced R&D(977) etc. 6

7 4-1. Financial Highlights (Parent) Global Online Game Publisher NCsoft Sales 150, , , , , Operating Profit 100,000 50, , ,035 80,000 60,000 47,926 68,339 71,019 68,873 39, % QoQ 27% YoY 40,000 3% QoQ 44% YoY 20,000 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 Pre-tax Income Net Income 100, ,000 85,850 80,000 75,487 80,000 70,017 58,237 60,000 50,280 60,000 45,883 40,342 42,929 40,000 40,000 34,795 30,392 20,000 47% QoQ 12% YoY 20,000 48% QoQ 13% YoY 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 7

8 4-2. Sales Breakdown (Parent) Global Online Game Publisher NCsoft Sales by Games Quarterly Royalty 150,000 35, , ,918 30,000 30, ,000 50, ,499 25,300 1,422 39,201 23,913 24,922 2,912 2,247 45,122 42,355 17,385 15,886 Royalty Others AION L2 L1 25,000 20, ,000 10,000 13,966 25,300 26,113 23,913 24,922 17,655 42,817 47,508 5,000 20,922 2Q 09 1Q 10 2Q 10 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 8

9 4-3. Costs Breakdown (Parent) Global Online Game Publisher NCsoft 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 QoQ YoY Payroll 33,583 41,510 40,880 38,137 39,384 3% 17% Sales variables costs 7, ,319 7, ,432 5,423-16% -23% - Royalties , % 109% - Payment processing fees 2,533 2,961 3,751 4,136 4,277 3% 69% - Sales commissions 3,555 2,733 2, % -99% - Other variables % -55% Advertising 834 1,426 1, ,151 20% 38% D&A 3,073 3,412 3,585 2,953 3,225 9% 5% Others 12,052 13,449 16,377 12,650 14,861 17% 23% Total 56,573 66,117 70,525 61,130 64,045 5% 13% 9

10 4-4. Equity Method Gain/Loss (Parent) Global Online Game Publisher NCsoft 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 QoQ YoY Domestic Subsidiaries (712) (88) (411) (1,670) (1,037) - - Orion Soft (3) 35 (130) 67 (31) - - Next Play (409) (209) (143) (1,795) (1,349) - - Crazy Diamond (52) (27) 60 8 (5) - - NCsoft Service (0) 207 (199) % - Zepetto (51) Overseas Subsidiaries (2,314) 9,557 13, ,273 (1,074) - - NC Interactive (5,159) 2,388 2,414 (2,060) (2,713) - - Arenanet (367) NC Europe 0 4,047 8,135 2, % - NC Japan 1,615 1,546 1, % -76% Ncsoft Japan (653) (307) (145) - - NC China 792 (198) % -94% NC Taiwan 220 1,583 1,244 1, % 14% NC True % 2057% Total (3,026) 9,469 12,768 1,604 (2,111)

11 4-5. Quarterly Sales by Subsidiaries (Parent) Global Online Game Publisher NCsoft 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 QoQ YoY NC Interactive 10,996 24,200 24,073 12,980 15,022 16% 37% Arenanet 1,664 1, , % -11% NC Europe 4,242 17,007 22,727 11,256 8,522-24% 101% NC Japan 20,946 23,294 25,747 18,884 17,806-6% -15% NC Taiwan 4,013 8,857 6,520 6,183 5,536-10% 38% NC China 2,789 1,970 1,935 1,687 1,429-15% -49% NC True 972 1,091 1,325 1,877 2,591 38% 166% Total 45,622 77,495 83, , ,389-2% 15% 11

12 5-1. Summarized B/S Consolidated Parent H 2010 Current Asset 303, , ,369 Quick Assets 301, , ,283 Inventories 2,022 1,308 1,086 Non-current Assets 214, , ,000 Investment Assets 16,002 23,972 30,525 Property, Plant and Equipment 162, , ,308 Intangible Assets 16,990 11,978 11,752 Others 18,924 23,154 34,415 Total Assets 518, , ,369 Current Liabilities 83, , ,040 Non-current Liabilities 10,989 15,987 22,006 Total Liabilities 94, , ,046 Capital Stock 10,237 10,855 10,897 Capital Surplus 148, , ,835 Capital Adjustments (92,852) (100,638) (102,706) Accumulated Other Comprehensive Income 5,048 1,865 5,472 Retained Earnings 342, , ,215 Minority interest 10,530 13,405 15,609 Total Stockholders Equity 424, , ,322 Total Liabilities and Stockholders Equity 518, , , H 2010 Current Asset 234, , ,465 Quick Assets 234, , ,348 Inventories Non-current Assets 239, , ,982 Investment Assets 65, , ,297 Property, Plant and Equipment 154, , ,473 Intangible Assets 4,990 2, ,890 Others 14,106 19,688 24,322 Total Assets 473, , ,447 Current Liabilities 48, , ,088 Non-current Liabilities 10,195 16,032 20,646 Total Liabilities 58, , ,734 Capital Stock 10,237 10,855 10,897 Capital Surplus 148, , ,835 Capital Adjustments (92,852) (100,638) (102,706) Accumulated Other Comprehensive Income 5,048 1,865 5,472 Retained Earnings 344, , ,215 Total Stockholders Equity 415, , , Total Liabilities and Stockholders Equity 473, , ,447 12

13 5-2. Summarized P/L Consolidated Parent H 2010 Sales 346, , ,017 Cost of goods sold 108, ,996 73,831 Gross profitp 238,285, 480,747, 261,186, Selling & Administrative expense 188, , ,740 Operating income 50, , ,447 Non-operating income 22,709 23,544 17,624 Non-operating expense 31,755 16,840 44,739 Income before income tax expenses 41, , ,332 Income Taxes Expenses 13,346 52,408 30,565 Minority it interest t , , ,138 Net income 25, ,189 88, H 2010 Sales 240, , ,067 Cost of goods sold 63,493 89,489 42,184 Gross profit 176, , ,883 Selling & Administrative expense 131, ,482 82,990 Operating income 45, , ,892 Non-operating income 27,114 40,995 21,744 Non-operating expense 35,385 13,309 45,807 Income before income tax expenses 37, , ,829 Income Taxes Expenses 9,996 44,729 27,199 Net income 27, ,506 88,629 13

14 Thank you 14