[NX] The Nexon Report
Four main stories from Nexon went public this week that I didn’t blog about so I’ll cover them in this post.
Nexon To Report First Quarter Financials on May 10
Nexon Co. Ltd. was originally expected to make public its financial report for the first quarter of 2012 ended March 31 on April 30. Along the way this was delayed and it is now expected to be released on May 10 at 4:00PM Japan Standard Time/00:00 Pacific Daylight Time. A conference call will be hosted that day for discussion on the financial results and the company’s outlook. The call’s transcript will be posted on Nexon’s Investor Relations website (http://ir.nexon.co.jp/ (Japanese)/ http://ir.nexon.co.jp/en/ (English)).
Nexon Stock Rises Greatly After Acquisition Hints
Nexon’s stock price has risen by 51 JPY or 3.39% following the company’s announcement that it is currently in discussions to buy smartphone and mobile game developers. It is said that these acquisition plans are for companies located in Japan where Nexon is headquartered. This comes not too long after Nexon and Nexon Mobile merged their operations to become one consolidated company working as two different teams rather than two separate affiliated companies.
The mobile gaming market is the fastest growing game market globally with the US market expanding 29% year-over-year in the final quarter of the 2011 calendar year. More and more gamers are moving away from consoles (which are dedicated to gaming) and moving onto more versatile platforms such as the personal computer, mobile phones and tablets.
“The industry is moving in our direction,” Mahoney said at the company’s Tokyo headquarters April 18. “We’d like to buy teams in intellectual properties early in what we consider to be their total lifetimes and then grow them.”
Nexon’s stock price now stands 19.69% above where it did when the company went public on the Tokyo Stock Exchange on December 13, 2011.
Owen Mahoney is Global Chief Financial Officer at Nexon, and is responsible for managing Nexon’s global financial operations, as well as investments and strategic alliances.
Mr. Mahoney has more than 15 years of experience in finance, and was most recently CEO of the online game publisher, Outspark. Prior to that, he was Senior Vice President of Corporate Development at Electronic Arts, where he was responsible for worldwide mergers and acquisitions and business development, and led all acquisitions and equity investments from November 2000 to March 2009.
He also has substantial operating and deal-making experience in Asia. Prior to joining EA, Owen oversaw business development for domestic and international operations of consumer technology company Xenote, was responsible for establishing and managing the Japanese joint venture of Internet pioneer PointCast Inc., and managed business and channel development for the Asia/Pacific region for Apple’s software subsidiary, Claris Corp. Owen also held a variety of management posts with other technology companies including Ray Dream, Inc. (now MetaCreations), and Radius, Inc.
Owen graduated with a Bachelor of Arts in Asian Studies from the University of California, Berkeley, and studied Japanese law and political science at the University of Tokyo graduate department of law.
Can you imagine his pay check?
Small Developers Being Provided With Free Office Space
The Nexon & Partners Center has been opened and with an area of 1100 square meters Nexon is providing small developers with free office space. Nexon will be allocating the space to 2 companies of 15 employees each or 3 companies of 10 employees each starting in Summer 2012. All fees including rent and utilities will be paid in full by Nexon.
It is highly possible that Nexon will use this as a platform to actively seek out new talent and recruit this talent into their own internal workings. With these companies working with Nexon it is possible for them to have access to the world’s biggest free-to-play publisher if they decide to partner with Nexon for the publishing of their games.
This move is also part of an ongoing project by Nexon to encourage young graduates just out of college and entering into the gaming market to begin their own companies. Nexon formed a medium-term partnership with the Pioneering Support Department of the Soeul, South Korea-based Yonsei University for just this reason earlier this year.
Top 10 Game Companies in Korea
A ThisIsGame report.
Which Korean game company reaches the highest sale in 2011? We arranged top 10 company based on the report for 2011 and the electric disclosure from Financial Supervisory.
– Red: Sales declined comparing to 2010
– NHN, CJ E&M sales are only from game category
#1 Korean online game company based on Sales is Nexon. Nexon’s sales record up 26% from 2010. The sales record of other ‘N’ companies such as Neowiz Games, NHN, NCsoft were remained at the half of Nexon’s. However, Neowiz Games, NHN, NCsoft have prepared the strong line-up for the year 2012 – Raiderz for Neowiz Games, Winning Eleven Online for NHN, Blade&Soul / Guild War 2 fro NCsoft.
What influence to each company’s sales record the most? A company who has games that were successful in China ranked on high mostly. The behind of Nexon’s sales record, there is Dungeon&Fighter, which is ranked #2 in China with 2.6 million CCU. The sales record from Dungeon&Fighter in China is about 537,300,000,000 Korean Won.
The behind of Neowiz Games, there is Cross Fire, which is #1 in China with 3.5 million CCU. The sales record from Cross Fire in China is about 995,400,000,000 Korean Won. Smilegate, the developer of Cross Fire, is the only developer in top 10.
Gamevil and Com2us ranked in #12 and #15 as mobile game publisher. The year 2012 could be the first year that a mobile game publisher is ranked within top10.