Good morning, and good evening. Thank you all for joining this conference call. Now, we'll begin the conference call of the fiscal year 2023, second quarter earnings results by NCSOFT. This conference will start with a presentation, followed by a divisional Q&A session. If you have a question, please press star one, that is star and one on your phone during the Q&A. We shall commence the presentation by NCSOFT.
[Foreign language]
Good morning, this is Jason Lee, Head of IR at NCSOFT. Thank you for participating in this conference call for the second quarter of 2023. Now, let me begin my presentation with the earnings highlights.
[Foreign language]
Second quarter sales totaled KRW 440.2 billion, representing a decrease of 8% QOQ and 30% YOY, stemming from a decline in revenue from Lineage W and Lineage 2M. Operating profit posted KRW 35.3 billion, down by 57% QOQ and 71% YOY, driven by a weaker top line and an increase in marketing and other expenses. Pre-tax income was KRW 39.1 billion and net income KRW 30.5 billion, representing a QOQ decline of 72% and 73% respectively, and YOY decrease of 76% and 74% each.
[Foreign language]
Next let me discuss the sales of each game L ineage M recorded sales of KRW 127.8 billion, a dip of 2% versus the previous quarter. The game's unique fun and high quality updates enabled the title to achieve solid performance amid a highly competitive environment. Confirming once again, Lineage M's position as a top-ranking title in Korea.
[Foreign language]
Lineage W sales continued to moderate at a lower level, coming in at KRW 102.8 billion, a drop of 16% QOQ, due to multiple new game launches in the Korean market.
[Foreign language]
Lineage 2 M also was somewhat impacted by the launch of similar MMORPGs, recording sales of KRW 62 billion, or a decrease of 15% quarter-over-quarter.
[Foreign language]
Blade & Soul two posted KRW 4.3 billion, which is a drop of 15% quarter-over-quarter.
Blade & Soul two is scheduled to launch in Japan and Taiwan within the third quarter. The company is taking the user feedback collected across the past two years of operations in Korea to enhance the contents of the game for the upcoming launch.
[Foreign language]
The sales of the five PC online games together was KRW 88.2 billion. That is 4% lower than the previous quarter. Guild Wars two is planning to release its fourth expansion pack on August 22nd. After the release, we are planning to supply new contents on a regular basis.
[Foreign language]
Lastly, royalty totaled KRW 36.3 billion, or a decline of 14% QOQ. Lineage M Taiwan royalty showed a slight increase, royalty from other games decreased. Guild Wars two China royalty dropped due to the high base effect of the first quarter, during which the title recorded its highest quarterly sales.
China continues to show a strong level of user traffic.
매출 변동비 및 기타 비용은 모바일 게임 매출 감소에 따라 유통 수수료는 감소했지만, 기타 지급 수수료 및 기타 비용 등의 증가로 QOQ 3% 증가한 KRW 156.4 billion입니다.
Next, let me discuss expenses. Second quarter operating expenses totaled KRW 405 billion, which is higher by 2% versus the previous quarter, but down by 20% year-over-year. To break it down by line item, labor cost was KRW 208.5 billion, less by 2% QOQ, but up by 1% YOY. Marketing came in at KRW 12.2 billion, which is an increase of 152% quarter-on-quarter, due to the advertisements for across the board updates and promotions for live games. As our marketing activities were more efficient, the spend represented a drop of 80% year-over-year. Depreciation was similar to the previous quarter at KRW 27.9 billion.
Variable costs and other expenses combined was KRW 156.4 billion, which is an increase of 3% versus the first quarter. Distribution fees declined as mobile sales decreased. Other fees and other costs increased.
차기 PC 콘솔 MMORPG, TL은 지난 오월 국내 테스트를 실시했으며, 이를 통해 실제 게임을 경험한 고객들로부터 다양한 의견을 청취할 수 있었습니다. 당사는 대작 PC 게임에 걸맞는 플레이 경험을 선사하기 위해서 유저 피드백을 적극 반영하였고, TL의 콘텐츠를 빠르게 개선했습니다. TL은 최적화된 글로벌 서비스 환경을 확보하기 위해 아마존 게임스와 함께 유저 테스트를 준비 중에 있습니다. 아, 보다 구체적인 계획은 글로벌 권역 퍼블리셔인 아마존 게임스를 통하여 빠른 시일 내 공유드리도록 하겠습니다.
The company's next PC and console-based MMORPG, Throne and Liberty, or TL, held a local test last May. We were able to collect a wide range of feedback from users who actually experienced the game. The company promptly engaged in content improvements for TL, which actively reflected the feedback received to ensure we can present our users with a gameplay experience fitted for a large-scale PC game. To ensure we created an optimized global service environment for TL, we are preparing to host a user test with Amazon Games, where details on the plans and event will be provided by our global publisher, Amazon Games.
NCS가 새롭게 선보이는 MMO 장르의 4종의 모바일 게임 또한 글로벌 출시를 준비하고 있습니다. 올해 Q3 캐주얼 퍼즐 게임 PUZZUP의 출시를 시작으로, 내년 상반기에는 난투형 대전 게임 BATTLE CRUSH와 수집형 RPG Blade & Soul S를, 하반기에는 RTS 게임 Project G를 출시할 계획입니다.
In addition, the company is also continuing preparations for the global launch of four new MMO games, non-MMO games. The first of the lineup will be PUZZUP, a casual puzzle game to be launched in the third quarter. Following in the first half of next year will be BATTLE CRUSH, a brawl style battle acting game, and collectible RPG Blade & Soul S. In the second half will come the RTS game, Project G.
모바일 게임 신작 출시 일정 일부가 조정되었는데, 일정이 조정된 만큼 각 게임들의 퀄리티를 끌어올리고, 철저한 사전 준비를 통해서 글로벌 시장에서 기대 이상의 성과를 낼 수 있도록 하겠습니다.
The company has made some adjustments to its mobile game launch pipeline. We will use this time to further enhance the quality of each game and fully prepare to ensure we can outperform in the global market.
이것으로 2023년 Q2에 대한 실적 설명을 마치겠습니다. 다음 분기에는 더 좋은 소식으로 찾아뵐 수 있도록 노력하겠습니다. 감사합니다.
This wraps up my presentation on the second quarter of 2023, and I hope to come back in the next quarter with better news. Thank you!
지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 이번을 누르시면 됩니다.
Now, Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number, star one. For cancellation, please press star two, that is star and two on your phone.
처음으로 질문해 주실 분은 Goldman Sachs의 Eric Cha 님입니다.
The first question will be provided by Eric Cha from Goldman Sachs. Please go ahead with your question.
네, 질문 기회 감사합니다. 두 가지 질문이 있습니다. 좀 전에 그 pipeline에서 조금 업데이트를 이제 해주셨던 것 같은데, 이제 말씀하신 대로 이제 mobile games들이 조금 delay가 된 듯해 보이는데요. 어떤 이유가 좀 있는지 좀 설명 조금 더 구체적으로 그렇게 하신 이유를 좀 부탁드리고, 그렇게 되면 사실 우리가 AION 2도 이제 pipeline에 있다고 인지를 하고 있는데, 그것조차도 조금 그와 비슷하게 좀 밀리, 조금 더 schedule이 더 뒤로 밀릴 수 있는 건지 그게 또 궁금하고요? 모두의 관심은 지금 사실 TL에 있을 텐데, 그 글로벌 CBT의 시작이 사실 한 8, 9월 정도는 돼야지 올해 내에 이제 TL이 feedback을 또 이제 글로벌 CBT에서 받아서 이제 출시를 할 거라고 감안을 하면은 그 정도는 나와야 될 것 같은데, 여전히 연내 출시에 대한 자신감이 여전히 있으신지 그걸 좀 부탁드리고요?
두 번째 질문은 그, 기존 게임들의 이제 그 매출 모멘텀인데, 리니지 M은 상대적으로 이제 견조해 보이는 것 같습니다. 근데 리니지 W나 그 리니지 투 M이 이제 어떻게 보면 좀 지속적으로 더블 디짓으로 빠지고 있는데, 어... 뭐, 이 분, 어, 저번 분기에 이제 안정화를 기대하신다고 말씀하셨는데, 아직까지는 지금 안정화가 안 되는데, 그 언제부터 좀 회사가, 그, 지금 시점에서 그 안, 두 게임에 대한 안정화가 예상이 되시는지, 또 왜 그렇게 생각하시는지에 대해서 뭐, 데이터가, 그 기반이 되는 그 데이터가 있으신지 부탁드리겠습니다. 감사합니다.
Yes, thank you for the opportunity to ask questions. There are two questions that I would like to ask you. During your presentation just now, you did provide an update of your overall pipeline going forward. As you have mentioned, it does seem to be that there are some delays that you have baked in, in terms of your mobile game, launch schedule. If you could elaborate a bit about the reasons behind that in more detail, that would be appreciated. In addition to that, for the AION 2 pipeline, this is something that we also are expect, would be in the overall pipeline for your launches going forward. Does this mean that for AION 2, that the overall launch date will also get pushed back?
I think that a lot of attention right now is surrounding the game TL or Throne and Liberty. I do think that for the global CBT, the starting date would have to be at around August or September, for you to be able to take that user feedback and then reflect it into the game, and also be able to launch within the year. With that coming, is this still, is this timeline still valid? Are you still confident that you will be able to launch this game within the year? The second question that I would like to ask you is about your existing game, overall revenue momentum. It does seem to be that for Lineage M, the overall momentum is still very strong.
However, for Lineage W and Lineage 2M, there continues to be double, double digit declines within the top line that we are seeing. I do believe that during the first quarter call, that you said that you did hope that there would be some stabilization. However, that does not seem to have been taking place. In terms of the stabilization of performance, when do you actually believe we can see these titles stabilizing? Do you have any data that would actually back up your overall view in that manner? Thank you.
[Foreign language]
Thank you for your question. You know, it is right now the vacation season, and the fact that you're not on vacation and participating in this call and asking us a lot of interesting question, is something that we do appreciate.
Maybe we can take your questions one by one. For the first question, I will address that, and for the second question, I believe Jason will be able to take that.
[Foreign language]
Maybe to address your question, what I can say that within the mobile game market, if you look at the current situation, as many analysts and investors are aware of, within the current marketplace, there have been a lot of Lineage-like games that have been released. As a result of that, it is true that within our existing IP revenues, that there has been some impact from that situation.
However, as a leading company in the MMORPG area, of course, we do continue to strive to make efforts to strengthen our our forte further, and also ensure that on the top line side and in terms of gameplay, we can continue to show stronger performance and a rebound in our overall situation. However, at the same time, I think that another area in which the company is very interested in, is to expand outside of the MMORPG space into new genres.
[Foreign language]
The first of such efforts would be, the global puzzle game that we are planning to launch within the year, PUZZUP! If you look at the overall business model for this game, it's very different from the profile of models that we have had in the past. The initial revenue in itself will not be something that will significantly, contribute to the overall top line. We do believe that over the mid to longer term, that it would, show us a stronger momentum. That would be where we, where we would be more focused on. In addition to that, if you look at the characteristics of the game, it would not be contained to any specific region, but it would be a global, game that we are looking at right now.
Having a global game, a very steady profile in terms of revenue is something that is very important. In terms of the genre itself, it's something new for us, and added to that, we have tried to add on some NC-only type of elements and uniqueness to the overall games. PUZZUP and the launch, global launch for this year, for is something that we are focused on.
[Foreign language]
Following that will be BATTLE CRUSH and also Blade & Soul S. For BATTLE CRUSH, this is a brawl-style battle action game, and for our Blade & Soul S, this is of course, a collectible RPG game that we have. For these two titles, the overall timing that we are looking at right now would be the first half of next year, and right now internally, we are making the preparations accordingly. The reason why some the launch date has been adjusted towards next year is because of a couple of reasons. The first would be that we do want to be able to target the global market for these games.
As a result of that, for the existing IPs that we're basing these games off of, we do want to highlight and try to emphasize further the points of differentiation that these new titles will provide. In addition to that, we want to ensure that we create a game that will satisfy the overall expectations of the global market, and also be able to provide the best and most optimal type of experience for a wide variety of platforms. As a result of that, right now, we're adding the finishing touches, and again, we'll launch within the first half of next year. Towards the second half of next year, we also have Project G, which is of course, a game that we have communicated, communicated to you before.
This is an MMO plus RTS type of genre, and this will also be a global launch.
[Foreign language]
For AION 2, of course, this is a game that has had a lot of internal and also external interest surrounding it in terms of the revenue contribution and also the overall performance of the game going forward. As of a result of that, right now, we are trying to set a new standard in terms of the contents that would be available under this game. Right now, internally, we are putting our full force under and against the development of the game in, in a whole. Unfortunately, I do think that it's a bit too early to talk about the pipeline of launch for this for AION 2. However, what I can say is that according to the internal targets that we have and timeline, the overall progress is on schedule.
[Foreign language]
For TL, as we have mentioned during the presentation, for the Korea launch, it is something that we are planning within the fourth quarter of this year. Will be led by Amazon Games. For the user test, it is something that we are preparing to engage upon and also for the global launch, global launch in itself and the communication surrounding those events. Again, Amazon Games will be taking the lead and sharing that information with you. For the domestic launch, the way, the reason why we're looking at the fourth quarter would be that, during the CBT that we have conducted, there were various issues that we were able to identify. I think that, you know, we have been able to fully incorporate that and have completed the overall updates that are required.
Based upon the feedback, we do feel comfortable about a domestic launch within the year. Based upon the buzz that we can create from that domestic launch, for the global market, we do want to create a more solid support base of of fandom surrounding the game. That is something that we do expect. Within this process, we are looking for an overall global launch that would take place simultaneously across the globe by Amazon Games next year. Yes, maybe to go on to your second question. It is true that, as you have said, for the Lineage W overall stabilization, it has not gone according to what we have expected.
That is a situation that is taking place, and I do think that it is somewhat off of our initial expectations. The reason for that is because if you look at the competitive environment, there has been a higher concentration of competitive games that have been released within the market. As a result of that, we do think that that has somewhat impacted the overall stabilization trend that we had been expecting. As of the current time, with regards to the focus that we have for our games, rather than strengthening the monetization performance of the games of themselves, we do think that it is a time for us to be focusing on regaining the users back to the game.
that would be the focus of our efforts, and this is something, of course, that is ongoing. We do think that the results of that is something that you will be able to see within the fourth quarter of this year.
[Foreign language]
The following question will be presented by Donghwan Oh from Samsung Securities. Please go ahead with your question.
[Foreign language]
Thank you for the opportunity to ask questions. If you look at the company's history to, across the past two decades, it seems to have been that with each new game launch that you have had, you have been able to contribute a new portion to your overall top line, and that has accumulated, resulting in the growth of the overall company. However, this pattern across the past year or so is something that I think has not actually been taking place. As a result of that, for the new upcoming TL, do you think that it will be a game that will be able to fully offset the decline that you see in Lineage W's revenue? If not, what game going forward do you actually believe will be able to have that offsetting effect going forward?
[Foreign language]
Yes, to address your question, I think it's a very good question. If you look at TL and, you know, compare that versus the existing mobile games that we had launched in the past, I do think that it will be difficult to TL, for TL, to actually have, for example, a record breaking top line after the launch. As a result of that, the reason for that would be that in terms of the genre itself, it would be, you know, a different type of situation. As a result of that, we do think that that type of performance would be very difficult. In addition to that, it is a PC based game, which also will be console supported through Amazon Games.
If you look at the overall business model, various aspects and characteristics of the game, we do think that it does provide a very different dynamic from the mobile games that we launched in the past. So as a result of that, we don't think that TL will have the effect of fully offsetting the decaying trend that we see in revenue alone.
[Foreign language]
As result, as mentioned, we do think that it will be difficult for a single IP to have that type of effect. However, and maybe, you know, regenerate the overall revenue performance that we have been able to seen from Lineage W in the past.
However, that have been said, as we have mentioned, we do have a lineup of mobile games within the pipeline that will come one by one to the market. Added to that, Blade & Soul two is also going to be launched in Japan and, and Taiwan soon. If you look at the indicators there, we actually do believe that there will be a strong contribution that we will be able to see from the top line from those launches. In addition to that, as Eric had asked in the past, and as we have also mentioned, and you have said, internally, we do understand the concerns that you are voicing.
As a result of that, we are also thinking of various initiatives to try to not only offset the weakening performance, but also be able to show other ways that we will be able to grow once again. So this is something that at the, you know, department levels, at the business unit levels and at the development team levels, that we have engaged upon from last year. I do think that there will be opportunities going forward through NCing or other types of events, for us to be able to share that with you and also, you know, communicate further about what we're trying to do.
If you look at AION 2 or the other games that we have within the pipeline, as our past, you know, history has shown with our existing games, when we have been in a challenging situation, we have been able to, you know, break through, those type of situations and create, you know, a new track record, for our performance and our future. We do think, once again, in this competitive environment, that we will be able to do that once again. Also, you know, we do have various plans to try to recoup, with regards to our overall top line and also in terms of profitability.
[Foreign language]
The following question will be presented by Jingu Kim from Kiwoom Securities. Please go ahead with your question.
... 구체적인 개선 사항을 함께 말씀해 주시면 감사하겠고요. 두 번째로 차기 신작인 트리플엠, Project M, Project E 등 주요 라인업별 개발 진행 사항과 출시 일정 등에 대한 업데이트를 좀 부탁드리도록 하겠습니다. 이상입니다.
Thank you for the opportunity to, to ask questions. There are two questions that I would like to ask you. First is that with regards to TL, after the domestic tests and the feedback that you have garnered, how have you actually made updates to the overall game in itself? How have you reflected the user feedback? If you could share, you know, the details of those improvements that you have made, that would be appreciated. Secondly, with regards to your games going forward, for example, for Project M and Project E, how is the progress of development taking place for those games? What would be the type of timeline we, we can expect going forward?
네, 그 TL에 대해서 콘텐츠, 그 피드백을 뭐 잘 아시겠습니다만, 한 3가지 정도로 그 당시에 그 좋은 점과 나쁜 점이 있었는데요. 좋은 점은 뭐 저희가 강점인 대규모 경쟁 콘텐츠에 대한 호평, 그 다음에 open world 부분에 대한 호평, 그리고 다른 모델에 대한 BM에 대한 긍정적인 게 있었고요. 반면에 좀 아쉽다고 많이 질책을 해주신 거는 초반에 어떤 성장 경험에 대한 여러 가지 아쉬움의 그 피드백이 있었고요. 그다음에 또 전투 시스템에 대해서 좀 개선의 필요성이 많이 있었던 걸로 저희는 이해하고 있었습니다.
With regards to the feedback that we have received from TL, as you may be aware, I think that we can summarize it being that in terms of the positive points, there were around 3 main messages that we had received. One was that in terms of the overall, you know, entertainment factor related to the large scale competitive content, that was something that a lot appreciated. Second, was the overall depth of the open world that was being realized is something that also we got a lot of good feedback about. The third was the direction of the overall business model.
On the flip side of that, if you look at areas in which people believed, you know, we could do a bit better, I think that one was related to the overall growth experience in the initial stage of the game, and the second was related to the combat system and the need to make some improvements in that area.
그래서 저희가 뭐 크게, 크게 보면 두 가지 정도가 제일, 어, 저희가 중점적으로 개선을 한 것 같은데요. 첫 번째는 다이내믹한 전투를 가능할 거라고 말씀을 드리겠습니다. 그래서 뭐 그때 피드백에, 여러 가지 그 피드백에서도 나온 얘기처럼, 뭐, 이동하고 또 일반 공격하고를 좀 병행해서 할 수 있는, 어, 그런 변경이라든지, 그다음에 응답 속도가 개선된 점이라든지, 그런 점에서 어, 다이내믹한 플레이를 가능하도록 개선을 했고요.
As a result of that, I think that the improvements that we have incorporated accordingly can be, you know, divided into two big areas. One is that for the overall, you know, play in itself, we have made it more dynamic, so that more dynamic battle and combat is possible. Under that overall big title, what we have been able to do is ensure that the characters can move and also make general attacks at the same time, so that this can take place simultaneously. Also, at the same time, we have tried to increase and, you know, better improve the overall response time that we have, so that overall play becomes more dynamic.
두 번째는 성장의 재미라고 말씀을 드리도록 하겠습니다. 그 성장의 재미를 제고시키기 위해서, 단순하게 반복되는 콘텐츠를 저희가 많이 줄이고요. 레벨 성장 속도를 대폭 상향하는 식으로 개선, 개선을 해서 많은 개선이 이루어졌다고.
The second is in terms of the overall growth, going forward in terms of how, you know, interesting it becomes or how entertaining it is. We have eliminated a lot of the simple and repetitive type of content that is required for growth to take place. At the same time, we have also accelerated the overall speed at which characters can be leveled up.
큰 틀에서 말씀을 드리면, 저희가 지금 TL을 통해서 그 타겟으로 보이는 고객들이 지역별로, 또 연령별로, 또 이 MMORPG의 경쟁 플레이를, 에 대한 경, 플레이 경험, 그리고 이런 장르에 대한 선호도, 이런 큰 꼭지들에서 저희가 어떤 굉장히 다양한, 그리고 지금까지 저희가 대상으로 어, 했던 유저 베이스와 다른 게 있기 때문에, 그런, 이런 지금 굉장히 큰 꼭지, 또 다양한 꼭, 꼭지들에 대한 니즈에 부합하는 그 여러 가지 고민과 시도가 어, 있었고, 그 점이 저희 파트너사인 아마존과 협업으로 어, 많은 부분 피드백 이후에 개선이 되고 반영이 됐다고 생각을 하고 있습니다.
From a big picture perspective, if you look at the target users that we are looking at for TL, in terms of the overall regions, the age of the users and profile, and in addition to that, the preference for a variety of genres and also, the play experience that they have with the competitive and other, you know, competing MMORPGs. I think that we're looking at and trying to address a much broader base than before, and it's also a different base than our existing users that we see right now. As a result of that, we have put a lot of thought into how to address these different aspects in the right way, and we are making various attempts and different types of approaches to try to satisfy that.
I think that this is a collaboration that continues with our partner, Amazon Games, and as a result, we have incorporated, you know, a lot of improvements and also the feedback accordingly.
[Foreign language]
The following question will be presented by Jaemin Ahn from NH Investment & Securities. Please go ahead with your question.
안녕하세요, 질문 기회 주셔서 감사합니다. NH투자증권의 Jaemin Ahn입니다. 아까 그 Donghwan Oh 연구원이 질문한 거랑 어떻게 보면 좀 비슷할 수 있는데요. 지금 게임 시장, 특히 이제 뭐 NCSOFT 보면 이제 신규 게임이 나와서 매출이 대단식으로 성장하는 게 아니라 그냥 카니발 보여주면서 이렇게 더 이상 성장이 만들어지지 못하는 단계인 것 같은데, 이 부분에 대해서 뭐 탑 매니지먼트는 지금 좀 어떤 생각을 가지고 계신지? 이게 단순히 그냥 시장 자체가 슬로우해서 뭐 그렇다고 보시는 건지. 최근에 뭐 노조가 좀 이슈도 있는 것 같은데, 여러 가지 좀 이 전반적인 문제에 대해서 좀 어떻게 생각하고 있으신지 좀 말씀해 주시면 감사하겠고요. 두 번째는 좀 그냥 마이너한 건데, TL 지금 한국을 올해 출시하면 나머지 Asia 지역 중에 그 NCS가 퍼블리싱하는 지역은 어떻게 되는 건지 또 궁금하고요. 뭐 또 하나 간단한 질문은 지금 무형자산이 한 KRW 80 billion 정도 증가했는데, 어떤 부분들 때문에 증가했는지까지 좀 말씀해 주시면 감사하겠습니다.
Thank you for the opportunity to, to ask questions. I think that the question that I would like to ask is a follow-up to what Mr. Oh had mentioned before, and it is that if you look at the current game market and, you know, the overall performance that NCSOFT is showing specifically, I do think that it is different from in the past. In the past, if a new game was launched, accordingly, there was an overall contribution from revenue that we were able to see as a result of that, and there was a step-by-step growth in the overall profile.
Now it seems to be that, that is not how growth is taking place, and when a new game is launched, there is actually a cannibalization that is taking place, and as a result of that, I do think that, you know, it is a bit different. The question that I would like to ask is: What's the top management view about this overall situation? Do you deem it to be a result of, you know, a very slow market across the board? In terms of the view that management has about various challenges that the company is facing, including, I do believe that there are some issues with the labor union also, you know, for this overall situation, what is management's view and opinion about how things are, are progressing?
The second question that I would like to ask is maybe a slightly minor type of question, but for TL, if you launch in Korea within this year, what would be the schedule for the rest of Asia in terms of the view going forward and your activities there? In addition to that, in terms of your intangible assets, I do think that there has been an increase of about KRW 80 billion that we have seen within this quarter. What would be the reason behind that?
[Foreign language]
The question that you're asking right now is a very important question, and at the same time, we do also recognize that, you know, it is the key, question, that people are most interested in.
... 속도감 있게 신작을 지속적으로 출시하는 이 세 가지가 빠지면 기본적인 경쟁력이 흔들린다고 생각을 하고 있습니다.
I think that from a big picture perspective, you know, the industry that we are presented in and that we're positioned in would be the entertainment industry. If you look at the fundamental nature of this business, it is that, you know, you need to be able to very swiftly come out with new products or new launches and do that consistently on an ongoing basis. If you're not able to do that and provide these three different elements, I do think that that means that your competitive edge is something that may be a bit shaky.
저희가 생각하는 이 지금 말씀드린 거를 잘, 실천에 옮기기 위해서는 세 가지가 필요한 것 같은데요. 첫째는, 그거를 감당할 수 있는 resource가 있고, 그 resource를 경영진이 정확하게 allocation 할 수 있는 역량이 있어야 되고요. 두 번째는 이게 뭐 처음 해서 되는 관계 아니기 때문에, 그걸 해본 누적된 experience, 경험치가 있어야 되고요. 세 번째는 이 두 가지를 합쳐서 어떤 식으로 play out 할 수 있는 전략이 필요하거든요. 이 세 가지가 중요한데, 저희가 기존에 하던 IP와 그 종류를 떠나서 아까 말씀드린 globalization, 여러 다양한 장르에서 신작을 출시하는 데 있어서, 지금 말씀드린 이 세 가지 execution의 key core content에 대해서 부족함이 있었던 점을 저희도 여실히 느끼고 있는 상황입니다.
As a result of that, I think that at the company level, what we believe is that for, to be able to make that happen, for us to be able to implement, the three elements that we have just mentioned, there are three things that are necessary. The 1st is that, of course, we need to be able to have, the resources that would be available to sufficiently support this type of operations. At the management level, we also need to have the capability, to accurately allocate the resources according to, the areas that they are, needed. The 2nd is that also, you do also need to have a vast amount of experience and be able to accumulate experience within this area, because this is not something that a novice can do.
The third would be that, combining to the two factors that mentioned before, I think that having the strategy to be able to play out and execute the according, would be something that is very important. As a result of that, I think that, you know, what we're trying to do in terms of our new launches going forward is that, you know, different from the existing IPs that we have, and also the genres that we have been engaged in in the past, we're looking at a globalization, you know, profile going forward. We do want to be present in a wider variety of genres.
At the same time, I think that at the management level, we do understand, that for the key core competencies that are required for execution, of this type of vision that we have, that there are areas that we do feel that we are, a bit lacking in.
경영진 차원에서는, 이런 문제점을 충분히 숙지하고 있고, 이 문제점의 원인, 원인에 대한 분석도 철저하게 시행하고 있고요. 이런 거, 이런 변화를 저희가, 잘 하기 위해서 전사적인 프로세스 점검, 또 여러 가지 구조적인, 점검을 지금 현재, 진행을 하고 있고요. 거기에 맞는 새로운 전략을 수립하고 있는 과정이라고 말씀을 드리고 싶습니다.
At the management level, we do recognize the issues that we are facing and the challenges that we are facing. Right now, we are trying to do an analysis about the root causes of this situation and try to execute the changes that are necessary accordingly. Right now, we are looking through at a full company level, the overall processes that we have in place, and we're also double checking the structural aspects of our overall operations. This is an ongoing process as we speak right now, and as a result of that, we are in the process of formulating a new strategy for the future.
어, 그래서 그 결과물은, 어, 저희가, 어, 말씀드리는 이렇게 공적으로, 공적으로 말씀드리는 여러 계획, 출시 일정이 쉽사리 변경되고, delay 되고, 어, 그런 일이 반복되지 않도록, 어, 저희가 출시 일정을 명확히 communicate 드리고 지킬 수 있도록, 어, 경영진 입장에서 약속을 드리고자 합니다.
As a result of those efforts, I think that, you know, officially, in terms of our plans for the future and also for the launch pipeline, what we want to be able to do is not, you know, repeatedly, come up with changes or maybe delays within the schedule. We want to be able to clearly communicate our intentions for the future and to be able to abide by what we have set forth. This is something as management that we are committed to making happen.
... Asia 지역 출시 TL, 그 한국 국내 출시 외에 아시아 지역 출시는 아까 말씀드린 것처럼 Amazon, 저희 파트너인 Amazon과 지금 협의를 진행하고 있고, Amazon과 글로벌 출시하는 일정에 맞춰서 진행하려고 하고 있습니다. Amazon에서 별도로 빠른 시간 내에 제가 날짜를 말씀을 여기서 못 드리는 점 양해를 부탁드리고요. Amazon에서 발표를 할 겁니다.
For TL's launch outside of Korea in the Asian region, this is again something that we are consulting and talking to with Amazon Games about, because we do want to make it in line and at the same time as the global launch. As a result of that, I do think that in the not too far future, you know, please understand that I can't share you specific dates, that there will be an opportunity for Amazon Games to come out with an official announcement.
세 번째, 마지막 주신 그 무형자산은 제가 저도 뭐 숫자를 보는, 평생 숫자를 봐온 사람이어서, 아, 이걸 보시고 질문하실까 하는데 했는데, 프로페셔널하게 질문을 해주셔가지고 답변을 안 드릴 수가 없다는 점을 먼저 말씀을 드리고요.
For the intangible assets, of course, you know, being a numbers guy myself, of course, I looked at the numbers and said, "Oh, maybe a question would be coming out related to this point." Of course, you know, it is a question that you have asked, so I think I can address it.
저희가 아까도 말씀드렸다시피, 지금 여기서 말씀드리는, 말씀드릴 수 있는 출시 계획, 새로운 IP 외에 여러 가지 미래 성장을 위한, 어떤 글로벌 경쟁력 강화를 위한, 여러 가지 시도가 이루어지고 있습니다.
I think that to that point, what I can say is that in addition to, you know, the overall pipeline that we have shared with you on this call today, and also the new IPs that we have for the future, there are various other projects that are ongoing, or various other initiatives that we have at the company level for future growth and also to further solidify our global competitiveness.
측면에서 저희가 무형자산 투자가 있었고요. 이거는 일회성으로 끝나는 게 아니라, 앞으로도 아까 말씀드린 글로벌 경쟁력 강화를 위해서는 지속적으로 이런 형태의 무형자산 투자를 이루고, 이를 통해서, 저희가 중장기적인 성장 동력을 글로벌리 마력한, 마련하는 작업을 진행을 하고 있습니다.
As a result of that, we did make an investment into intangible assets to, again, you know, strengthen our global competitiveness. As a result of that, this is not a one-off event, but we do think that there will be similar nature investments going forward. There will be other intangible asset investments that we will be making to again, ensure that we are able to secure the growth drivers for the mid to long term.
장기적으로 성장하기 위해서 노력을 다각도로 하고 있고, 이런 지금 관련된 무형자산 투자에 대한 구체적인 사업화에 대한 내용은 아까 말씀드린 것처럼, 저희가 발표할 수 있는 시기에 상시로 이런 IR, 분기별 IR이 아닌 상시적인, 저희가 커뮤니케이션 채널을 통해서 지속적으로 말씀을 드리도록 하겠습니다.
Again, this is something that we have acquired for, you know, longer term growth, and we are looking at a wide variety of options available for us. In terms of how we are going to utilize this investment into intangible assets and commercialize upon that, I think that, you know, this is something that we, when we feel is the right time that we will share with you, and not only through the quarterly conference calls that we have, but also, you know, on an infrequent basis, as information, you know, becomes more available. We will continue to communicate very fluidly.
현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 누르시기 바랍니다.
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질문이 추가적으로 없으시면, 오늘 다시 한번 휴가 시즌에도 참여해 주셔서 감사드리고, 저희가 하루빨리, 조금 더 투자자들 입장에서, 투자자분들 입장에서 더 이렇게, 좀 익사이팅하고, 회사의 전망에서 여러 가지, 좋게 봐주실 수 있는, 소식을 가지고, 다시 저희가 좋은 소식을 가지고, 돌아올 것을 약속을 드리고, 그렇게 되도록 노력을 하겠습니다. 감사합니다.
If there are no further questions, again, I would like to thank everyone for participating in this peak vacation season. Once again, we do hope to come back in the future with more exciting and also interesting, more positive news for you. On that front, of course, we will do our best. Thank you very much!