The success of Lineage M did not save NCsoft from falling profits
The popularity and revenue of the mobile role-playing MMO Lineage M did not help the Korean publisher NCsoft cope with a 66% decrease in the company’s profit in the second quarter of this year.
The company’s net profit from April to June of this year amounted to $27 million. At the same time, NCsoft’s quarterly revenue grew by 8% and reached $229 million.
NCsoft’s profits were “eaten up” by rising costs. For example, the company paid employees $19.6 million more compared to last year.
In addition, distribution expenses increased by $25.4 million, and marketing spent $2.1 more than in the second quarter of 2016.
These expenses were largely associated with the launch of Lineage M, and NCsoft is betting that the investments will pay off in the future.
As the Korea Times newspaper reported, Lineage M set a record for mobile game revenue in South Korea, earning $11.5 million on the day of release and at least $222 million in the first month.
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