NCsoft (036570)

**Business Overview** NC is a leading South Korean online and mobile game developer and publisher, established in 1997. It primarily specializes in the MMORPG (Massively Multiplayer Online Role-Playing Game) genre, with flagship titles including the 'Lineage' series (PC, M, 2M, W, Classic), the 'Aion' series (PC, 2), 'Blade & Soul', 'Guild Wars 2', and 'Throne and Liberty'. Recently, the company has been pursuing genre and platform diversification through PC games such as 'Aion2' and 'Lineage Classic', and new IPs like 'Project Cinder', 'Time Travelers', and 'Limit Zero Breakers'. Additionally, it operates the cross-platform 'PURPLE', enhancing connectivity between PC and mobile, and is expanding into AI business areas such as AI-powered content creation, multilingual translation, chatbots, and commerce solutions. Based on annual revenue for 2025, mobile games recorded 794.4 billion won, and PC online games recorded 430.9 billion won. In Q1 2026, PC game revenue reached an all-time high of 318.4 billion won, surpassing mobile game revenue of 182.8 billion won. Its main customer base consists of MMORPG players, which has expanded from primarily PC gamers to mobile-first users following the success of titles like 'Lineage M'. NC maintains a leading position in the domestic mobile MMORPG market with a share of over 20%, with the Korean market accounting for approximately 58% of total revenue, and the proportion of the North American and European markets also expanding. **Core Competencies** NC's core competencies lie in its strong intellectual property (IP) portfolio, particularly the high brand value and loyal user base of the 'Lineage' franchise. The 'Lineage' IP consistently generates revenue, accounting for over 65% of total revenue in 2024. Furthermore, NC possesses outstanding technological capabilities, such as proprietary game engines and data center operation know-how for massively multiplayer environments. It is also integrating generative AI technologies like 'VARCO' into game development and operations to shorten content creation time and personalize user experiences. Long-term live service operation experience and data-driven economic system management contribute to high user retention and predictable revenue generation. **Performance Analysis** NC's annual revenue decreased by 30.8% from 2,571.8 billion won in 2022 to 1,779.8 billion won in 2023. It further decreased by 11.4% to 1,578.1 billion won in 2024, and by 4.5% to 1,506.9 billion won in 2025, showing a downward trend. Operating income sharply declined by 75.4% from 559.0 billion won in 2022 to 137.3 billion won in 2023. In 2024, it turned to a deficit of -109.2 billion won. In 2025, NC successfully returned to profitability with an operating income of 16.1 billion won. Notably, in Q1 2026, revenue reached 557.4 billion won and operating income was 113.3 billion won, showing high growth rates of 55% in revenue and 2,070% in operating income compared to the same period last year. This was driven by the success of 'Aion2' and 'Lineage Classic', with PC game revenue reaching an all-time high and leading to improved profitability. **Financial Soundness** NC's financial soundness remains robust. Its debt-to-equity ratio has steadily decreased from 38.74% in 2022 to 35.07% in 2023, 29.06% in 2024, and 28.56% in 2025, demonstrating a stable financial structure. The current ratio was 522.19% in 2022, 380.41% in 2023, 555.12% in 2024, and 353.50% in 2025, significantly exceeding the generally considered healthy level of 200%, indicating high liquidity. Return on Equity (ROE) recorded 13.63% in 2022, and the company aims to achieve over 15% by 2030. **Outlook** NC is pursuing business diversification in response to the saturation of the mobile MMORPG market and reduced reliance on 'whale' users. It has set 'legacy IP expansion', 'new IP acquisition', and 'expansion of mobile casual business' as its three core growth strategies. In particular, NC plans to accelerate its global market penetration through the global service of 'Aion2' and new IPs across various genres, such as 'Project Cinder' and 'Time Travelers'. Additionally, it is applying AI technology across game development and operations, and seeking to transform into an IT company by securing new growth engines through its AI solutions business. Through these strategies, NC aims to achieve 5 trillion won in revenue and an ROE of over 15% by 2030.