Nexon Announces Third Quarter 2013 Results
New and Existing Titles on PC and Mobile Drive 64% Revenue Growth
Investments in World-Class Developers Mark Significant Progress Toward
TOKYO -- November 8, 2013
NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online
games, today announced financial results for its third quarter ended September
30, 2013. Revenues grew 64% year-over-year, operating income increased 53% and
net income increased 10%.
“We are pleased with our solid third quarter results, driven by the strong
performance of new and existing titles. We exceeded the high end of our
outlook for the fourth consecutive quarter, with Korea growth accelerating and
stable performance in China,” said Seungwoo Choi, President and Chief
Executive Officer of Nexon. “We continue to make excellent progress on our
long-term strategic initiatives, making several investments in studios headed
by world-class developers, which enables us to secure AAA content,
particularly in the US and European markets. The platform transition toward
synchronous online game play and free-to-play monetization shows no signs of
slowing, and – as pioneers of the free-to-play model – we are well-positioned
to capitalize on this industry momentum.”
Third Quarter Fiscal 2013 Financial Highlights (IFRS) (1)
(Millions of yen, except per share data)
Q3 2012 Q3 2013 YoY%
Revenues ¥24,256 ¥39,883 64%
PC 23,567 32,995 40%
Mobile 690 6,887 10.0x
Operating income 10,602 16,237 53%
Net income ^2 7,352 8,054 10%
Earnings per share: 16.94 18.35 8%
^1 Nexon voluntarily adopted IFRS beginning in the first quarter of 2013.
^2 Net income refers to net income attributable to owners of the parent, as
stated in Nexon’s consolidated financial results.
Additional information regarding Nexon’s third quarter financial results is
available at Nexon’s IR website “IR Library” at
Revenue Breakdown (IFRS)
(Millions of yen)
Q3 2013 Q3 2013 YoY % Change
Region ^1 Q3 2012 (As- (Constant As- Constant
Reported) Currency)^3 Reported
China ¥11,404 ¥15,962 ¥12,464 40% 9%
Korea 6,579 12,151 9,488 85% 44%
Japan 3,232 8,755 8,754 171% 171%
North America 1,341 1,364 1,093 2% -18%
Europe and 1,701 1,651 1,290 -3% -24%
Nexon Total 24,256 39,883 33,089 64% 36%
^1 Based on the region in which revenues originate; not a representation of
our revenues according to Nexon entities.
^2 Others: Other Asian countries and South American countries.
^3 On a constant currency basis (using Q3 2012 currency exchange rates).
Korea growth accelerated, driven by FIFA Online 3 and well-received
Dungeon&Fighter updates. Stable growth continued in China, reinforced by a
tier one update to Dungeon&Fighter. Japan grew year-over-year due to the
consolidation of gloops.
Revenues were up 40% year-over-year, or 9% on a constant currency basis.
Dungeon&Fighter performance was in-line with expectations, supported by a
popular tier one content update. Counter-Strike Online also continued to show
Revenues were up 85% year-over-year, or 44% on a constant currency basis. This
accelerating growth was driven by existing titles such as FIFA Online 3,
Sudden Attack, Dungeon&Fighter and Mabinogi. MapleStory continues to perform
below expectations. New mobile game Fantasy Runners for Kakao achieved nearly
3 million downloads during the quarter.
Revenues were up 171% year-over-year due the consolidation of gloops. Dragon
Eclipse, the first collaboration between gloops and DeNA, launched in
September, with a native app released the following month. Existing mobile
titles including Three Kingdoms Guild Battle continue to show stable
Revenues were up 2% year-over-year, or down 18% on a constant currency basis.
Nexon announced several key investments in high-profile US-based developers
including Shiver Entertainment, headed by industry veteran John Schappert.
Nexon also announced a publishing agreement with UK developer Splash Damage
for the title Extraction.
Europe and Others
Revenues were down 3% year-over-year, or 24% on a constant currency basis.
Nexon announced a publishing agreement with Gamania for Warface in Taiwan.
Fourth Quarter 2013 Business Outlook
The following table presents Nexon’s outlook for the fourth quarter of fiscal
(Millions of yen) Q4 2012 Q4 2013
Revenues ¥30,882 ¥31,775~¥33,606
PC 23,813 25,916~27,198
Mobile 7,070 5,860~6,408
Operating income 8,793 6,748~7,921
Net income 552 4,814~5,730
Earnings per share 1.27 10.96~13.05
The Company also expects a weaker Japanese yen to continue to contribute to
year-over-year growth based on its ¥98.95 per US$1 and ¥8.94 per 100KRW
currency exchange assumptions.
About NEXON Co., Ltd. http://company.nexon.co.jp/
NEXON Co., Ltd. (“Nexon”) (3659.TO) is a worldwide leader in free-to-play
online games. Founded in Korea in 1994, Nexon developed one of the world's
first graphics-based massively multiplayer online games. Nexon also pioneered
the concept of microtransactions and the free-to-play business model, setting
a new standard in which play is free, and users have the option to purchase
in-game items to enhance their experience. Nexon currently services nearly 60
online games in more than 100 countries and since its founding, Nexon has
generated more than 1.4 billion player registrations. The Company is
headquartered in Tokyo, Japan and its shares are listed on the Tokyo Stock
NEXON Co., Ltd.
Owen Mahoney, +81-3-3523-7910
Chief Financial Officer
Greg Melchior, +81-3-3523-7919
Corporate Public Relations
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