Nexon First Quarter 2018 Financial Results

Key insights

6 takeaways

01
Nexon achieved record-breaking Q1 2018 financial results with revenue rising 21% year-over-year to 90.5 billion yen and operating income reaching 54.7 billion yen.See it on page 1
02
Net income for the first quarter of 2018 more than doubled compared to the same period in the previous year.See it on page 1
03
The Dungeon&Fighter franchise in China served as the primary growth driver, maintaining double-digit year-over-year growth following a successful Lunar New Year update.See it on page 1
04
North American performance improved significantly due to the first full-quarter contribution from the newly acquired Pixelberry Studios and the success of their title, Choices: Stories You Play.See it on page 1
05
Established titles including MapleStory and DomiNations maintained double-digit growth in their respective regions, supporting the company's long-term live operations model.See it on page 1
06
Nexon projects Q2 2018 revenue to fall between 45.1 and 49.1 billion yen, with growth expected from titles like EA SPORTS FIFA ONLINE 4, Durango: Wild Lands, and MapleStory M.See it on page 1

Summary

Nexon’s first quarter 2018 financial results demonstrate significant growth, characterized by a record-breaking performance that saw revenues rise 21% year-over-year to 90.5 billion yen. Operating income reached 54.7 billion yen, while net income more than doubled compared to the same period in the previous year. These results exceeded the company’s initial outlook, driven primarily by the robust performance of flagship titles and the effectiveness of long-term live game operations across global markets.

The company’s success was largely anchored by the Dungeon&Fighter franchise in China, which benefited from a strong Lunar New Year update and continued its trend of double-digit year-over-year growth. In Korea, mobile revenue saw a significant increase due to new title launches, while North American performance was bolstered by the first full-quarter contribution from Pixelberry Studios and the success of Choices: Stories You Play. Other established titles, such as MapleStory and DomiNations, also contributed to the positive results, maintaining double-digit growth in their respective regions.

Looking forward, the company maintains a strategic focus on its live operations model, which emphasizes the long-term cultivation of game franchises. The outlook for the second quarter of 2018 anticipates revenues between 45.1 and 49.1 billion yen. Future growth is expected to be supported by a diverse pipeline of upcoming titles, including EA SPORTS FIFA ONLINE 4 in Korea, various mobile releases in Japan, and international launches for games such as Durango: Wild Lands and MapleStory M. These efforts reflect a broader development philosophy aimed at fostering unique, studio-driven experiences within the global online gaming market.