NCsoft earnings soared in 2004

Over the past couple of years, South Korea's NCsoft has picked up increasing mindshare in the US marketplace, primarily from its strong suite of released games, including City of Heroes. Today, the Seoul-based publisher and developer announced financials for its fiscal year ending December 31, 2004. Total revenues for the year rose to $246 million, up 48 percent from fiscal year 2003.

NCsoft officials reported that the company's operating profit for 2004 was $108 million (up 97 percent over 2003), and net profits were $77 million (an increase of 145 percent from the previous year). Royalty profits exceeded $37 million.

NCsoft's online-game lineup also includes the Lineage franchise and the upcoming Tabula Rasa.

In the fourth quarter (October through December 2004), NCsoft revenues were $62 million, down 2 percent from the prior quarter of the same year. Operating profits for the fourth quarter, $21 million, were also down--by 25 percent--from the third quarter.

NCsoft's net profits declined 39 percent from the previous quarter, to $13 million, and quarterly royalty earnings were off 6 percent at $10 million due to the Korean won's increasing strength against the US dollar. In a statement released today, company officials said a rise in labor and marketing costs also contributed to the declines.

Looking ahead to 2005, NCsoft forecasts total revenues of $305 million, operating profits of $110 million, and royalty profits of $52 million. In Korea, the company plans to launch Guild Wars in the first half of 2005 and City of Heroes in the second half. North America and Europe will see a subscription-free release of Guild Wars on April 28. Later in 2005, NCsoft will release City of Villains (Heroes' sequel) and Auto Assault, a postapocalyptic game in which players do battle with customized cars.