NC (036570) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales reached KRW 409.4 billion, up 2% sequentially but down 6% year-over-year.

• Operating loss for Q4 was KRW 129.5 billion, driven by increased operating expenses.

• Full-year 2024 sales totaled KRW 1,578.1 billion, an 11% decrease year-over-year, with an operating loss of KRW 109.2 billion.

• Completed major restructuring, reducing headcount from 5,000 to 3,001, mainly via spin-offs and voluntary resignations; ongoing efficiency initiatives planned.

• HQ to focus on legacy MMORPG IPs, while new titles and genres will be developed by subsidiaries and investees.

Financial highlights

• Q4 net loss was KRW 26.5 billion, compared to net income of KRW 71.1 billion in Q4 2023.

• Full-year net income dropped to KRW 94.1 billion, down from KRW 213.9 billion in 2023.

• Q4 pre-tax loss was KRW 32.0 billion; full-year pre-tax income was KRW 120.9 billion, down 41% year-over-year.

Segment performance

• Q4 mobile game sales fell 15% sequentially to KRW 215.6 billion, 53% of total sales.

• Q4 online PC game sales rose 16% sequentially and 6% year-over-year to KRW 93.4 billion.

• Shooter genre prioritized with six titles in the pipeline, targeting NA, EU, and Southeast Asia markets.

• Legacy MMORPGs to remain core HQ focus, with new genres and titles handled by subsidiaries.

• Royalty sales surged 93% sequentially and 140% year-over-year in Q4, reflecting global success of TL.