NC (036570) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached KRW 382.4 billion, up 6% QoQ and 4% YoY, driven by growth in both PC and mobile games.

• Operating profit surged 189% QoQ and 71% YoY to KRW 15.1 billion, but net income swung to a loss due to lower FX gains and a weaker US dollar.

• Legacy IPs showed strong performance, with regional expansion and new launches supporting growth.

• Revenue for H1 2025 was KRW 742.7 billion, with 36% from overseas markets including royalties.

• Major asset sale: NC Tower I sold for KRW 443.5 billion to fund new RDI center.

Financial highlights

• Mobile game sales were KRW 219 billion in Q2 2025, up 6% QoQ and 0.3% YoY, accounting for 57% of total sales.

• PC online game sales reached KRW 91.7 billion in Q2 2025, up 10% QoQ and 6% YoY, making up 24% of sales.

• Royalties were KRW 42.3 billion in Q2 2025, down 6% QoQ but up 12% YoY.

• Operating costs totaled KRW 367.3 billion in Q2 2025, up 3% QoQ and 2% YoY.

• Cash and cash equivalents at period end: KRW 996.9 billion.

Outlook and guidance

• Seven new titles, including Aion 2, Breakers, Time Takers, LLL, and four spinoffs, are planned for release in 2026.

• 2026 sales guidance is KRW 2 trillion to KRW 2.5 trillion.

• Regional expansion of legacy IPs continues, with launches in China and Southeast Asia.

• Anticipation is building for Aion 2's Q4 launch in Korea and Taiwan.

• Continued focus on global expansion, platform diversification, and new IP development.