1Q 2014 Earnings Release

Transcription

1 1Q 2014 Earnings Release May 16, 2014 NCSOFT Corporation 12 Daewangpangyo-ro 644beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea Tel: Fax : Copyright c NCSOFT Corporation. All Rights Reserved

2 Global Online Game Publisher NCsoft Disclaimer The financial results for 1Q 2014 have been prepared on an un-audited basis, and may be subject to change during independent auditing process. Please note that NCSOFT will not be responsible for individual investment decisions solely based on this material. Consolidated subsidiaries (K-IFRS based) : NC West Holdings(100%, US), NC Europe(100%, UK), NC Japan(60%, JP), NC Taiwan(85%, TW), NCSOFT Corporation(HQ, KR), NCSOFT Service(100%, KR), NC Dinos Baseball Club(100%, KR), Hotdog Studio(58%, KR), Oraion Soft(100%, KR), Ntreev Soft(76%, KR) 2

3 Global Online Game Publisher NCsoft Contents I. Consolidated Earnings 1. Financial highlights 2. Sales Breakdown 3. Costs Breakdown II. Appendix 4. Parent Earnings 5. Summarized Financial Statements 3

4 Global Online Game Publisher NCsoft 1. Financial Highlights Revenues and profits dipped reflecting decrease in Lineage1. 300, , , , ,000 50, , ,014 Sales 169, , ,147 15% QoQ 4% YoY 0 Operating Profit 55,512 62,248 56,746 44,520 30,730 22% QoQ 20% YoY Pre-tax Income Net Income 65,272 58,677 31,026 61,248 44,436 27% QoQ 32% YoY 52,330 34,218 26,297 45,850 36,539 20% QoQ 30% YoY 0 0 4

5 Global Online Game Publisher NCsoft 2. Sales Breakdown Royalty expanded thanks to strong B&S in China. Lineage1 temporarily dropped with in-game item sales being scaled back. Sales by Region Sales by Games (excluding royalty) 184, , , , , ,707 12,708 14,337 36,382 33, ,582 Others 1 100,000 16,504 28,284 14,218 66,038 17,887 21,622 15,560 74,746 14,369 25,142 19,234 22,225 11,593 41,019 GW2 B&S AION L2 L1-1Q 13 4Q 13 1Q 14 L1 : Lineage 1 L2 : Lineage 2 B&S : Blade and Soul GW2 : Guild Wars 2 5

6 Global Online Game Publisher NCsoft 3. Costs Breakdown Labor cost went down 5% QoQ with year-end incentives in 4Q wearing off. Variable expense shrank staying in line with decreased sales. Marketing expense was down 37% QoQ driven by less marketing activities in 1Q. Others got stabilized as the one-off costs from NC Dinos in 4Q disappeared. QoQ YoY Labor Cost 76,543 76,426 75,481 82,898 78,487-5% 3% Variable expense 12,758 11,591 13,847 15,233 10,836-29% -15% - Payment processing fee 6,584 6,902 6,939 5,622 5,380-4% -18% - Royalty expense 3,462 2,750 5,243 4,073 3,922-4% 13% - Box production fee 580 1, , % -40% - Other variable 2, ,145 4,483 1,185-74% -44% Marketing expense 4,006 4,875 6,215 5,759 3,606-37% -10% D&A 8,458 8,472 9,097 9,517 9,246-3% 9% Others(*) 27,598 28,403 34,372 39,875 31,451-21% 14% Sub Total 129, , , , ,627-13% 3% * 1Q14 Others: Bandwidth costs(4,327), Rent(2,012), Wage for outsourced staff(5,000), Outsourced R&D(2,586), etc. 6

7 4-1. Financial Highlights (Parent) Global Online Game Publisher NCsoft Sales Operating Profit , , , , , ,939 11% QoQ 7% YoY 37,140 65,317 27,664 53,970 41,031 24% QoQ 10% YoY - - Pre-tax Income Net Income 45,724 58,950 27,434 57,370 41,067 28% QoQ 10% YoY 35,276 38,122 24,614 44,558 32,631 27% QoQ 7% YoY 0 0 7

8 4-2. Sales Breakdown (Parent) Global Online Game Publisher NCsoft Sales by Games Quarterly Royalty 1 151, , ,773 38,007 15,194 1,536 1,902 16,504 17, ,939 48,993 Royalty 50,000 48,993 21,538 6,761 63,239 16,403 6,855 70,156 4,177 19,234 17,518 5,406 38,611 Others B&S AION L2 L1 30,000 10,000 15,194 19,633 14,898 38,007-1Q 13 4Q 13 1Q 14 - L1 : Lineage 1 L2 : Lineage 2 B&S : Blade and Soul 8

9 4-3. Costs Breakdown (Parent) Global Online Game Publisher NCsoft QoQ YoY Labor cost 52,338 44,075 44,296 49,434 49,086-1% -6% Variable expense 7,964 6,809 6,779 5,711 5,585-2% -30% - Payment processing fee 5,180 4,583 4,804 3,581 3,028-15% -42% - Royalty Expense 2,626 2,138 1,821 1,770 1,636-8% -38% - Other variable % 481% Marketing expense 9,738 2,722 2,333 11,208 11,820 5% 21% D&A 4,573 4,354 5,325 5,825 5,796 0% 27% Others 13,021 13,408 31,374 25,063 20,620-18% 58% Sub Total 87,633 71,368 90,106 97,241 92,908-4% 6% 9

10 5-1. Summarized B/S Global Online Game Publisher NCsoft Consolidated Q 2014 Current Assets 785, ,366 Cash & cash equivalents 123, ,403 Short-term financial instruments 378, ,057 Account receivables 81, ,952 Others 202, ,954 Non-current Assets 694, ,750 Investment assets 292, ,454 Tangible assets 248, ,941 Intangible assets 112, ,788 Others 41,524 46,567 Total Assets 1,479,522 1,532,116 Current Liabilities 251, ,191 Borrowings 3,430 - Payables 22,559 52,814 Current tax liabilities 40,042 14,064 Other provisions 6 6 Others 185, ,308 Non-current Liabilities 68,913 71,195 Defined benefit obligations 45,945 43,172 Long-term employee benefits 4,873 4,236 Others 18,096 23,787 Total Liabilities 320, ,387 Capital Stock 10,957 10,965 Other Paid-up Capital 119, ,579 Other Components of Equity (6,122) (5,030) Retained Earnings 1,016,785 1,044,544 Non-Controlling Interests 17,524 17,672 Total Stockholders Equity 1,158,763 1,188,730 Total Liabilities and Stockholders Equity 1,479,522 1,532,116 Parent Q 2014 Current Assets 650, ,174 Cash & cash equivalents 23,984 32,888 Short-term financial instruments 362, ,000 Account receivables 58,938 88,350 Others 205, ,936 Non-current Assets 739, ,026 Investment assets 463, ,866 Tangible assets 230, ,226 Intangible assets 26,564 25,958 Others 19,836 24,977 Total Assets 1,390,188 1,434,201 Current Liabilities 165, ,113 Payables 7,740 41,884 Current tax liabilities 35,061 12,983 Others 122, ,245 Other Provisions - - Non-current Liabilities 55,386 54,874 Defined benefit obligations 39,945 38,233 Long-term employee benefits 4,650 4,025 Derivatives Liabilities Other Account Payble 10,676 12,501 Total Liabilities 220, ,987 Capital Stock 10,957 10,965 Other Paid-up Capital 129, ,917 Other Components of Equity 1, Retained Earnings 1,027,269 1,050,447 Total Stockholders Equity 1,169,326 1,193,214 Total Liabilities and Stockholders Equity 1,390,188 1,434,201 10

11 5-2. Summarized P/L Global Online Game Publisher NCsoft Consolidated Parent Q 2014 Sales 756, ,147 Cost of Sales 220,452 54,696 Gross Profit 536, ,451 Selling & Administrative Expense 330,969 78,931 Operating Income 205,235 44,520 Other Income 41,417 7,191 Other Expense 30,430 7,275 Income before Income Tax Expense 216,222 44,436 Income Tax Expenses 57,527 7,897 Net income 158,696 36,539 Non-Controlling Interests (60) (268) Equity Attributable to the owners of the Parent Company 158,756 36, Q 2014 Sales 530, ,939 Cost of Sales 108,916 24,641 Gross Profit 421, ,298 Selling & Administrative Expense 237,432 68,267 Operating Income 184,091 41,031 Other Income 32,370 7,565 Other Expense 26,983 7,530 Income before Income Tax Expense 189,478 41,067 Income Tax Expenses 46,909 8,436 Net Income 142,569 32,631 11

12 Global Online Game Publisher NCsoft Thank you 12