NC (036570) Q4 2023 earnings summary

Executive summary

• FY 2023 sales were KRW 1,779.8 billion, down 31% YoY; operating profit fell 75% to KRW 137.3 billion.

• Q4 sales rose 3% QoQ to KRW 437.7 billion, while operating profit declined 77% QoQ to KRW 3.9 billion.

Financial highlights

• FY 2023 net income was KRW 213.9 billion, down 51% YoY; pre-tax income was KRW 206.2 billion, down 66%.

• Q4 net income was KRW 25.2 billion versus a KRW 33.1 billion loss in Q4 2022; pre-tax income was a KRW 20.4 billion loss.

• Q4 income tax was a KRW 45.6 billion benefit, contributing to positive net income despite the pre-tax loss.

Segment performance

• FY 2023 mobile sales fell 38% YoY to KRW 1,200.4 billion, 67% of total sales; Q4 mobile sales were KRW 298.9 billion, up 9% QoQ.

• FY 2023 PC sales declined 6% YoY to KRW 365.1 billion, 21% of total sales; Q4 PC sales were KRW 92.3 billion, down 1% QoQ.

• Q4 mobile sales growth was driven by Lineage 2M and Lineage W; NA/EU sales increased 15% QoQ on strong GW2 sales.