1. NCSOFT’s Q1 2025 Earnings: A Mixed Bag
NCSOFT’s Q1 2025 earnings presented a mixed picture, with declining revenue but increasing net profit. Declining sales of flagship games and intensified market competition are cited as the main reasons for the revenue drop, although seasonal factors or strategic adjustments for new game releases are also possibilities. The increase in net profit is attributed to growth in non-operating income (financial income) and cost optimization efforts.
2. Throne and Liberty: A Critical Launch
The successful launch of ‘Throne and Liberty’ is key to NCSOFT’s earnings recovery. However, concerns remain that external factors such as a deteriorating global economic situation and rising logistics costs could impact the launch and overseas expansion.
3. Key IR Watch Points: Addressing Uncertainty
This IR is expected to provide explanations for the sluggish Q1 performance, details on the ‘Throne and Liberty’ launch strategy, and insights into future growth drivers such as the establishment of the Global R&D Center. Investors should pay attention to the possibility of reversing the declining revenue trend, the sustainability of non-operating income, and NCSOFT’s strategies for addressing macroeconomic risks like exchange rate fluctuations and interest rate hikes.
4. Investor Action Plan: Analyze IR Content and Market Reaction
Investors should review their investment strategies based on the IR content and subsequent market reactions, along with any further financial disclosures. The reversal of declining sales trends for existing games and the success of ‘Throne and Liberty’ are expected to significantly influence the future stock price. Careful analysis of provided stock data and the Q1 report is crucial for informed investment decisions.