Nexon Q2 2018 Financial Results

Key insights

6 takeaways

01
Nexon reported Q2 2018 revenues of 47.8 billion yen, a 2% year-over-year increase, with operating income of 16.0 billion yen and net income of 32.2 billion yen.See it on page 2
02
Financial performance was bolstered by a 2.7 billion yen gain from the consolidation of NAT Games and a 15.5 billion yen foreign exchange gain on U.S. dollar-denominated assets.See it on page 2
03
MapleStory revenue in Korea surged 61% year-over-year, driven by 15th-anniversary events and seasonal updates, while Dungeon&Fighter remained a primary revenue driver in China.See it on page 1
04
The mobile portfolio saw growth with Darkness Rises exceeding 10 million global downloads and the international release of MapleStory M across 140 countries.See it on page 1
05
Nexon projects Q3 2018 revenues to fall between 60.9 and 65.9 billion yen, supported by the Western launch of MapleStory 2 and the transition to EA SPORTS FIFA ONLINE 4.See it on page 2
06
While PC revenues outperformed internal expectations, mobile revenues for the quarter fell slightly below projections.See it on page 2

Summary

Nexon’s financial results for the second quarter of 2018 demonstrate the efficacy of a long-term live service business model, characterized by sustained growth in flagship intellectual properties. The company reported revenues of 47.8 billion yen, representing a 2% year-over-year increase. Operating income reached 16.0 billion yen, while net income totaled 32.2 billion yen. These figures exceeded internal outlooks, bolstered by a 2.7 billion yen gain from the consolidation of NAT Games and a 15.5 billion yen foreign exchange gain on U.S. dollar-denominated assets.

The core of this performance lies in the longevity of established titles. Dungeon&Fighter continued to generate significant revenue in China after a decade of operation, while MapleStory experienced a 61% year-over-year revenue surge in Korea, driven by 15th-anniversary events and seasonal updates. Beyond these legacy titles, the company is actively expanding its portfolio through new mobile releases, such as Darkness Rises, which surpassed 10 million global downloads shortly after launch, and the international rollout of MapleStory M across 140 countries.

Geographically, the company maintains a global footprint, operating over 80 live games across more than 190 countries. While PC revenues outperformed expectations, mobile revenues fell slightly below projections. Looking toward the third quarter of 2018, the company maintains a positive outlook, projecting revenues between 60.9 and 65.9 billion yen. Future growth strategies remain focused on leveraging original intellectual properties for global expansion, including upcoming launches for MapleStory 2 in Western markets and the continued transition of players to EA SPORTS FIFA ONLINE 4.