Nexon Second Quarter 2017 Financial Results

Key insights

6 takeaways

01
Nexon reported a 23% year-over-year revenue increase to 47.1 billion yen for the second quarter of 2017, exceeding initial financial outlooks.See it on page 1
02
Operating income reached 16.3 billion yen, while net income totaled 19.4 billion yen, bolstered by 6.3 billion yen in foreign exchange gains.See it on page 1
03
Growth was primarily driven by live operations for flagship titles, specifically the 9th anniversary update for Dungeon&Fighter in the Chinese market.See it on page 1
04
The company projects third-quarter 2017 revenues to fall between 51.6 and 55.6 billion yen.See it on page 1
05
Nexon is expanding its portfolio with a pipeline of new titles including LawBreakers, Titanfall: Assault, Battlejack, and Dark Avenger 3.See it on page 1
06
The organization maintains a global footprint of over 100 live games operating across more than 190 countries.See it on page 2

Summary

Nexon’s financial performance for the second quarter of 2017 demonstrates significant growth, characterized by a 23% year-over-year revenue increase to 47.1 billion yen. This expansion was primarily fueled by the company’s expertise in live game operations, specifically through the sustained success of flagship titles such as Dungeon&Fighter and MapleStory. The strong performance of the China business, bolstered by the 9th anniversary update for Dungeon&Fighter, served as a primary catalyst for exceeding initial financial outlooks across all key metrics.

Operating income reached 16.3 billion yen, while net income attributable to owners of the parent company totaled 19.4 billion yen. The latter figure was further enhanced by 6.3 billion yen in financial income, largely attributed to favorable foreign exchange gains. These results reflect the company’s ongoing strategy of leveraging its established portfolio to drive player engagement while maintaining high-margin operations within the global online gaming sector.

Looking toward the third quarter of 2017, the company maintains a positive outlook, projecting revenues between 51.6 and 55.6 billion yen. This growth trajectory is supported by a robust pipeline of upcoming titles, including LawBreakers, Titanfall: Assault, Battlejack, and Dark Avenger 3. As a global entity operating over 100 live games across more than 190 countries, the company continues to prioritize the long-term sustainability of its titles. By focusing on sophisticated live operations and the free-to-play business model, the organization aims to capitalize on its established foundation to secure continued market leadership and financial stability throughout the remainder of the fiscal year.