Nexon Second Quarter 2015 Financial Results

Key insights

6 takeaways

01
Nexon reported Q2 2015 total revenue of 42.7 billion yen, a 16% year-over-year increase driven by strong performance in China and Western markets.See it on page 1
02
Net income surged approximately 3.2 times year-over-year to 13.0 billion yen, bolstered by lower-than-expected tax expenses and positive foreign exchange gains.See it on page 1
03
Operating income rose 14% year-over-year to 11.3 billion yen, supported by operational efficiencies and lower-than-planned expenses.See it on page 1
04
Mobile division revenue grew 20% year-over-year to 10.2 billion yen, with native mobile games doubling in revenue to account for two-thirds of the segment's total.See it on page 1
05
The company projects Q3 2015 revenue to fall between 46.3 and 49.7 billion yen.See it on page 1
06
Strategic growth is focused on launching new titles and expanding partnerships with companies like Electronic Arts to bring high-profile PC online games to market.See it on page 1

Summary

Nexon’s financial results for the second quarter of 2015 demonstrate robust growth across its global free-to-play portfolio, driven by strong performances in both established PC titles and an expanding mobile segment. The company reported total revenues of 42.7 billion yen, representing a 16% year-over-year increase that reached the high end of internal projections. This growth was supported by the sustained popularity of key titles such as Dungeon&Fighter in China and the successful introduction of new games like DomiNations in Western markets.

Operational efficiency and favorable external factors significantly bolstered the bottom line. Operating income rose 14% year-over-year to 11.3 billion yen, aided by lower-than-planned expenses. Net income saw a more dramatic surge, increasing approximately 3.2 times year-over-year to 13.0 billion yen, a result attributed to lower-than-expected tax expenses and positive foreign exchange gains. The mobile division proved particularly dynamic, with revenues climbing 20% year-over-year to 10.2 billion yen; notably, native mobile games doubled in revenue and now account for roughly two-thirds of the total mobile segment.

The company maintains a positive outlook for the third quarter of 2015, projecting continued revenue growth between 46.3 and 49.7 billion yen. Strategic priorities include the launch of highly anticipated titles and the deepening of partnerships with major developers like Electronic Arts to bring high-profile PC online games to market. By leveraging its expertise in the free-to-play model, the company continues to solidify its position as a global publisher, servicing nearly 150 titles across more than 150 countries.