[NX] Nexon Posts Strong First Quarter Results; North America Continues to Struggle

Nexon Co. Ltd. (JP:3659) has released its financial results for the first quarter of the year. Helped by the included revenue from Gloops, strong performances in Korea and China as well as a weakening Japanese Yen (JPY), the company has posted a strong first quarter performance. Nexon America, on the other hand, struggled again this quarter, posting a segment loss of 182 million JPY ($1.8 million) even as revenue increased by 9.5% to 1.5 billion JPY ($14.9 million).

  • Financial performance exceeded even high end of forecast range.
  • 44.4 billion JPY ($439.9 million) in revenue, up 46% for the same period last year.
  • 20.7 billion JPY ($205.1 million) in operating income, up 24% versus the same period last year.
  • Operating profit margin of 47%, above expectation.
  • Chinese growth led by strong performance from Dungeon Fighter Online.
  • Korean growth led by successful launch of FIFA Online 3 as well as strong performances by Dungeon Fighter Online and Sudden Attack.
  • A weakening Japanese Yen (JPY) helped nominal financial results.
  • PC revenue increased by 22% year-over-year to 36.9 billion JPY ($365.6 million).
  • Mobile revenue increased by 3213% to 7.5 billion JPY ($74.3 million), driven by the inclusion of Gloops financial data, as well as growth of Gloops’ operations.
  • Chinese revenue up 34% year-over-year (YoY).
  • Korean revenue up 20% YoY.
  • Japanese revenue up 221% YoY, largely due to the inclusions of Gloops’ Japanese operations in this data.
  • North American revenue up 1% YoY.
  • Revenue from European and other regions up 9% YoY.
  • Nexon’s global Monthly Active Users (MAU) was 71.5 million, up from 68.3 million last quarter but way down from 82.8 million YoY.
  • Pay Rate (percentage of users using cash in Nexon games) stood at 11.5%, up from 10.5% last quarter and 10.9% YoY.
  • Average Revenue Per Paying User (ARPPU) was 2,532 JPY ($25.08), up from 1,683 JPY ($16.67) last quarter and 1,761 JPY ($17.45) YoY.
  • Regional revenue composition: China 46% (down from 50% last year); Korea 24% (down from 29%); Japan 22% (up from 10%), North America 3% (down from 5%) and Europe and Others 5% (down from 6%).

Posted on May 10, 2013, in International Nexon. Bookmark the permalink. 8 Comments.

  1. I would not be surprised if Nexon NA shut down. Ive felt utter distaste for that company ever since DFO shut down. I cant even log into MapleStory with thinking about it. Ugh.

    • Who knows? Their shedding of the shackle that was DFO may be what gets them back out of a loss and into profit once again. I’m sure that the game’s poor performance had something to do with this.

      This comment serves a dual purpose:
      1. Telling the truth, the whole truth and nothing but the truth.
      2. Taunting Joey and making him mad 😛 😛 :P.

      • Ugh. cant find the post. But shortly after DFO closed, a user by the name of TooneGeminiElf went to Nexon. Apparently the building is like half empty. So yeah, low wages and senior management being jerks finally taking toll?

        BTW, DFO would’ve been amazing. Im now just waiting for…

        Since its not made by Nexon NA, the english publishing company will probably see the potnetial with their un-failing company and make the beat em up genre big while nexon NA goes “smh” because their inferiority will be ever-so present. At least thats what i hope happens. >:D

        • 1. The Nexon offices aren’t half empty.
          2. The in-house workers at Nexon don’t get paid badly for their jobs.
          3. The members of the senior management of Nexon aren’t jerks.
          4. You’re missing the point of the shutdown. DFO simply and clearly, unarguably, didn’t do well in North America. At least not for Nexon. Maybe it did decently well if it were published by another company, but by Nexon’s standards it had failed. All other Nexon games are doing well. MapleStory is declining but still strong. Mabinogi and Vindictus seem to be doing well based on Nexon’s 1st quarter report. Dragon Nest and Sudden Attack seem stable. Combat Arms has always done well. DFO just didn’t cut it despite the largest push for players post-launch that I’ve seen for any Nexon game ever with countless events urging players of other Nexon games to join the fun and encouraging current players to spread the word. This also despite relatively quick content porting with the North America lagging only 4-7 months behind the Korean service even though launching a full five years after. The ‘3D side-scrolling’ action beat em up genre I’m sure has the potential to do well. Rusty Hearts from Perfect World International, for example, seems to be holding its own. But just because MapleStory has been such a smashing success doesn’t mean WonderKing (now closed) will be. Just because Vindictus is a success doesn’t mean Divine Souls (now closed) will be. Just because Combat Arms has been a success doesn’t mean Global Tactics (now closed) will be. Just because Mario Cart is so successful doesn’t mean Kart Rider will be. Just because a genre has found success doesn’t mean every game released in that genre will find equal success.

          • 2/3: Glass Door~

            4: Nexon haz high standards. xD!

            and idk, maybe im just mad from scrolling through the forums too much. :s luckily i burned it off from playing League. xD sorry for bashing Nexon. >.>

            Btw, Mario Kart.*

            • Put it this way. Nexon is the third biggest exclusively game company in the world. They have a huge global reputation and have earned a reputation for business strategy superiority. Their games, particularly MapleStory and Combat Arms (with most others not far behind), have enjoyed a level of success that most companies would die for. So yes, standards are high.

              Look at Kru Interactive (the old Nexon America) which still to this day publishes the likes of Nexus TK (the world’s first ever graphic MMO and Shattered Galaxy (the world’s first MMORTS). Trust me, these games are EMPTY and I’m sure make VERY VERY VERY little in terms of revenue. But Kru is a small company with a small team, low recurring costs, it isn’t a growth-based company, and therefore standards are much much much much much much much much lower than Nexon’s.


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