NCSOFT Corp. delivered a sharp operational turnaround in the second quarter, with operating profit surging 71% from a year earlier, though currency fluctuations left the South Korean gaming company with a net loss.
The Seoul-based developer reported operating profit of ₩15.1 billion ($10.9 million) for the three months ended June 30, rebounding 189% from the previous quarter when the company posted ₩5.2 billion in operating profit. Sales rose 4% year-over-year to ₩382.4 billion ($275 million), marking a 6% sequential increase.
However, the company reported a net loss of ₩35.95 billion ($25.9 million) as foreign exchange headwinds eroded gains from the weakening U.S. dollar against the Korean won. The result contrasted sharply with net income of ₩37.5 billion in the first quarter.
NCSOFT’s stock jumped more than 13% following the earnings announcement, helping the company reclaim its position ahead of rival Krafton Inc. in market capitalization. Shares closed 9.6% higher at ₩222,000, extending year-to-date gains beyond 25%.
Mobile games dominated revenue streams, accounting for 57% of total sales at ₩219.0 billion, up 6% quarter-over-quarter. Legacy PC online games generated ₩91.7 billion, representing 24% of sales and growing 10% from the previous quarter.
Regional performance showed particular strength in Asia, where sales jumped 23% quarter-over-quarter to ₩69.1 billion, driven largely by the expansion of Lineage 2M into Southeast Asian markets. Korean sales, the company’s largest market, rose 7% to ₩244.8 billion.
Operating expenses climbed 3% to ₩367.3 billion, with marketing costs surging 75% quarter-over-quarter to ₩23.4 billion as the company invested heavily in promoting existing titles and preparing new launches.
NCSOFT is betting on flagship title Aion 2 to drive future growth, with the game scheduled for launch in Korea and Taiwan during the fourth quarter of 2025. The company has set ambitious revenue targets of ₩2 trillion for fiscal 2026, potentially reaching ₩2.5 trillion with successful new title launches.
The results highlight both the resilience of NCSOFT’s core gaming operations and the ongoing challenges posed by currency volatility for Korean companies with significant international exposure.
