[NX] Nexon’s Q3 2013 Financial Highlights: Revenue Surges 64%, Net Income Up 10%

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Nexon Co. Ltd. continues to report strong financial results on the back of high growth in mobile game revenue and a weakening Japanese Yen (JPY). Total revenue surged 64% year-over-year (YoY) to 39.9 billion JPY (403.2 million USD). Operating margin moved to 40.7% as operating income grew 53% YoY to 19.2 billion JPY (163.7 million USD).

Nexon continues to invest heavily in new talent acquisition in North America and Europe in order to rejuvenate growth in these regions over the medium term. MapleStory continues to perform below expectations and changes are coming to the game in upcoming content updates.

  • Revenue and operation income performance exceeded high range of forecast.
  • Revenue was 39.9 billion JPY (403.2 million USD), up 64% YoY.
  • Operating income was 19.2 billion JPY (163.7 million USD), an increase of 53% YoY and equating to an operating margin of 40.7%.
  • Net income was 8.1 billion JPY (81.8 million USD), up 10% YoY.
  • The Chinese market contributed 40% of total revenue, down from 47% a year ago, with actual Chinese revenue up 40% YoY. Dungeon & Fighter drove growth in the region with Counter-Strike Online also performing impressively and mobile game KartRider Rush Plus continued its superb download performance. Cyphers will launch in China in the fourth quarter of this year.
  • Korea contributed 30% of total revenue, up from 27% last year. Actual Korean revenue was up 85% YoY. FIFA Online 3 and Sudden Attack continue to power Nexon in the region, maintaining their #1 positions in their respective genres. Dungeon & Fighter and Mabinogi also proved strong.
  • Japan contributed 22% of total revenue, way  up from 13% last year. Actual Japanese revenue was up 171% YoY. Nexon continues to see the effects of its acquisition of Gloops which will disappear in very large part next quarter as the yearly comparison begins with a period post-acquisition of Gloops.
  • North America contributed 4% of total revenue, down from 6% a year ago. Actual North American revenue was up 3% YoY. Nexon continue to make major investment in Western studios in order to better suit the market and return to sizable growth over the medium term.
  • The ‘Europe and Others’ category contributed 4% of  total revenue, down from 7% a year ago. Actual revenue from this category declined by 3% YoY.
  • Nexon’s global Monthly Active Users (MAU) was 62.6 million, down from 71.0 million last quarter and 78.8 million last year.
  • Pay Rate (percentage of users using cash in Nexon games) was 10.4%, up slightly from 10.2% last quarter and up from 9.6% last year.
  • Average Revenue per Paying User (ARPPU) was 2,447 JPY (24.72 USD), up from 2,181 JPY (22.55 USD) last quarter and 1,729 JPY (17.47 USD) last year.

Posted on November 11, 2013, in International Nexon. Bookmark the permalink. 1 Comment.

  1. Nexon NA to “return to sizable growth over the medium term.”


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