[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%).