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Q2 2026 Earnings Release 2026. 8. 11 NC Corporation nc
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2 The financial results for Q2 2026 have been prepared on an unaudited basis and may be subject to change during an independent auditing process. Please note that NC will not be responsible for individual investment decisions based on this material. ※ Key Consolidated Subsidiaries (based on K-IFRS): NC Corporation(HQ, KOR), NC West Holdings, Inc.(100%, USA), NC America, LLC(100%, USA), NC Europe, Ltd.(100%, GBR), NC Japan K.K.(100%, JPN), NC Taiwan Co., Ltd.(100%, TWN), NC Service Co., Ltd.(100%, KOR), NC Dinos(100%, KOR), NC ITS Co., Ltd.(100%, KOR), NCSOFT Asia Holdings PTE. LTD.(100%, SGP), NC IDS Co., Ltd.(100%, KOR), NC QA Co., Ltd.(100%, KOR), FirstSpark Games Co., Ltd.(100%, KOR), BigFire Games Co., Ltd.(100%, KOR), Ludius Games Co., Ltd.(100%, KOR), NC AI Co., Ltd.(100%, KOR), INDYGO GROUP PTE. LTD.(67%, SGP), Springcomes Co., Ltd.(80%, KOR), Veroplay Limited(100%, CYP) Disclaimer
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3 I. Consolidated Earnings 1. Financial Highlights 2. Revenue Breakdown 3. Mobile Casual 4. Cost Breakdown II. Appendix 5. Consolidated Financial Statements Table of Contents
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4 1. Financial Highlights 15,079 (7,467) 3,247 113,277 173,861 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Operating Income ↑ 53% QoQ ↑ 1,053% YoY ↑ 38% QoQ ↑ 101% YoY Quarterly Performance (Unit : KRW MN) 382,393 360,036 404,218 557,383 770,501 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Revenue ↓ 14% QoQ TTP YoY ↓ 6% QoQ TTP YoY (33,287) 28,248 187,290 176,744 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Pre-tax Income 435,145 Q2 revenue recorded KRW 770.5 billion, up 101% YoY and 38% QoQ, driven by the meaningful contribution of Mobile Casual and robust performance of Lineage Classic Operating income reached KRW 173.9 billion, up 1,053% YoY and 53% QoQ, lifting the operating margin to 23% (35,953) (1,493) 152,428 131,181 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Net Income 347,360
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5 2. Revenue Breakdown (by Segment, Region) Revenue by Segment (Unit : KRW MN) Revenue Contribution by Region 65% 62% 60% 58% 48% 24% 27% 27% 27% 25% 11% 11% 13% 15% 27% 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Korea Asia NA/EU & Others PC revenue was KRW 343.8 billion, up 216% YoY and 8% QoQ, reaching all-time quarterly high Mobile Casual revenue grew to KRW 169.7 billion (22% of total), driven by the consolidation of JustPlay North America, Europe & Others rose to 27% of revenue on the JustPlay contribution, further diversifying the global revenue mix 108,691 109,040 188,369 318,350 343,759 223,535 209,374 188,785 182,787 185,311 35,509 169,707 50,167 41,621 27,064 20,737 71,724 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 PC Mobile Mobile Casual Others 382,393 360,036 404,218 557,383 770,501 * Royalty revenue integrated into respective IP * Royalty revenue integrated into respective IP
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6 2. Revenue Breakdown (by Game) PC Games (Unit : KRW MN) 22,296 27,436 26,674 99,826 204,745 29,297 28,461 31,008 28,791 25,809 16,193 12,461 7,798 8,706 7,860 24,553 21,594 15,144 11,651 9,735 16,353 19,088 30,384 32,625 23,689 77,361 136,751 71,922 108,691 109,040 188,369 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Lineage Lineage 2 Aion Blade & Soul Guild Wars 2 Aion 2 318,350 Mobile Games (Unit : KRW MN) 127,908 118,794 104,531 112,805 117,333 47,987 47,170 45,315 37,497 37,145 47,640 43,410 38,938 32,485 30,833 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Lineage M Lineage 2M Lineage W 223,535 209,374 188,785 182,787 343,759 185,311 Lineage Classic delivered KRW 185.5 billion, with momentum sustained well beyond launch, lifting PC Lineage revenue 9x YoY Aion 2 revenue stabilized at KRW 71.9 billion The three mobile titles generated KRW 185.3 billion, up 1% QoQ, with Lineage M at KRW 117.3 billion, up 4% QoQ * Excl. other PC Games, royalty revenue integrated into respective IP * Excl. other Mobile Games, royalty revenue integrated into respective IP
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7 3. NC Mobile Casual – Growth Intelligence Platform Attract Engage Grow Data & Optimization Platform [ OptiFlow ] Intelligence User Identification Predictive Decision-making UA Automation & Optimization Rewarded UA First Party Data Cross-promotion Growth Flywheel Attention Data NC Mobile Casual Ecosystem Lihuhu Moving Eye More to come Springcomes JustPlay Traffic Hub Studios Contents NC’s distinctive mobile casual ecosystem – compounding 1) Data & Optimization Platform, 2) Rewarded traffic hub, 3) Studios Beyond genre diversification – an intelligent content platform that maximizes user LTV (Lifetime Value) and capital efficiency
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8 Rewarded Platform Rewarded Gaming Platform Outpacing peers through a proprietary game-ad-reward integrated system GameDiscovery Studios Casual Puzzle Merge Puzzle Idle RPG Action Arcade Fast trend sensing Rapid iteration Immersive gameplay IAP monetization capability Well-recognized IP Stable traffic Swamp Attack Swamp Attack 2 Gameplay (Earn) Show Ads (Revenue) Challenges (Earn) Cashout Mobile Casual delivered KRW 169.7 billion, driven by the consolidation of JustPlay and continued studio growth Firmly established as one of NC’s three growth pillars, delivering meaningful financial contribution Mobile Casual (Unit : KRW MN) 3. NC Mobile Casual – Growth Intelligence Platform 35,509 169,707 1Q 26 2Q 26 * JustPlay and Moving Eye consolidated under Veroplay Hello Town Merge Peko Rush KnightsHole Em All Tile Triple 3D Match Triple 3D Tiles in Hole Sorting Queen
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9 4. Cost Breakdown 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Operating Expenses 367,315 367,503 400,971 444,107 596,639 Labor 190,785 199,391 197,876 243,951 260,039 Marketing 23,378 15,992 52,877 37,767 163,100 - Existing Business Segment 23,378 15,992 52,877 16,549 31,140 - Mobile Casual Segment - - - 21,218 131,960 D&A 24,725 21,397 22,281 22,880 25,166 Commission & Others 128,427 130,724 127,937 139,509 148,334 Operating Income 15,079 (7,467) 3,247 113,277 173,861 (Unit : KRW MN) QoQ YoY 34% 62% 7% 36% 332% 598% 88% 33% 522% N/A 10% 2% 6% 16% 53% 1,053% Q2 Operating expenses totaled KRW 596.6 billion, up 34% QoQ Labor costs increased 7% QoQ to KRW 260.0 billion, reflecting the accrued incentives and the consolidation of JustPlay Marketing spend for existing business was KRW 31.1 billion, up 88% QoQ, due to expanded marketing activity across the portfolio Marketing spend for Mobile Casual amounted to KRW 132.0 billion, reflecting the consolidation of JustPlay
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10 FY 2025 2Q 26 Liabilities I. Current liabilities 641,190 720,255 Borrowings 129,966 129,999 Account payables 105,862 179,537 Lease liabilities 49,240 57,857 Current tax liabilities 53,138 68,112 Other current liabilities 302,770 284,537 Other provisions 213 213 II. Non-current liabilities 321,520 362,465 Debentures and borrowings 39,946 39,953 Defined benefit obligations 3,326 2,814 Long-term employee benefits 21,862 23,239 Lease liabilities 137,867 138,488 Others 118,519 157,971 Total liabilities 962,710 1,082,720 Shareholders equity Capital stock 10,977 10,977 Other paid-in capital (239,534) (290,550) Other components of equity (75,623) (103,510) Retained earnings 3,669,049 3,923,426 Non-controlling interest 5,562 41,652 Total shareholders equity 3,370,431 3,581,995 Total liabilities and shareholders equity 4,333,140 4,664,715 Statement of Financial Position 5. Consolidated Financial Statements (Unit : KRW MN) FY 2025 2Q 26 Assets I. Current assets 2,266,590 2,236,390 Cash and Cash equivalents 503,522 671,071 Short-term financial instruments 491,465 582,067 Account receivables 187,483 238,353 Other receivables 21,532 70,490 Short-term investment assets 1,008,380 622,614 Others 54,207 51,795 II. Non-current assets 2,066,551 2,428,325 Long-term loans 500 685 Other receivables 21,904 25,615 Long-term investment assets 678,720 473,489 Investment stocks in associated companies 71,654 62,521 Tangible assets 1,034,694 1,133,481 Intangible assets 110,596 528,714 Others 148,484 203,821 Total assets 4,333,140 4,664,715
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11 Income Statement 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 Revenue 382,393 360,036 404,218 557,383 770,501 Operating Expenses 367,315 367,503 400,971 444,107 596,639 Operating Income 15,079 (7,467) 3,247 113,277 173,861 Non-operating Income (48,366) 442,612 25,001 74,014 2,883 Pre-tax Income (33,287) 435,145 28,248 187,290 176,744 Income Tax 2,666 87,785 29,741 34,862 45,563 Net Income (35,953) 347,360 (1,493) 152,428 131,181 Equity Attribution to the Owners of the Parent Company (35,412) 346,699 (2,377) 148,781 124,640 Non-controlling interest (541) 661 885 3,648 6,541 (Unit : KRW MN) 5. Consolidated Financial Statements