Nexon Third Quarter 2013 Financial Results

Key insights

6 takeaways

01
Nexon achieved a 64% year-over-year revenue increase to ¥39,883 million in Q3 2013, marking the fourth consecutive quarter of exceeding internal performance outlooks.See it on page 1
02
Mobile segment revenue grew tenfold year-over-year to ¥6,887 million, signaling a successful strategic pivot toward mobile monetization and synchronous online play.See it on page 2
03
Operating income rose 53% to ¥16,237 million, while net income grew 10% to ¥8,054 million.See it on page 1
04
Korea and China served as primary growth engines, with Korea revenue increasing 85% behind FIFA Online 3 and Dungeon&Fighter, and China revenue rising 40%.See it on page 2
05
Japan’s revenue grew 171%, a surge largely attributed to the consolidation of the mobile developer gloops.See it on page 2
06
Western markets in North America and Europe remained stagnant, showing flat or declining results on a constant currency basis despite the company's focus on acquiring AAA content for these regions.See it on page 2

Summary

Nexon’s third quarter 2013 financial results demonstrate significant growth, characterized by a 64% year-over-year revenue increase to ¥39,883 million. This performance, which exceeded the company's internal outlook for the fourth consecutive quarter, was driven by strong results from both PC and mobile gaming segments. Operating income rose 53% to ¥16,237 million, while net income grew 10% to ¥8,054 million. The company’s strategic focus remains on the free-to-play model, supported by investments in high-profile developers to secure AAA content for Western markets.

Regional performance was varied, with Korea and China serving as primary growth engines. Korea experienced an 85% revenue increase, bolstered by titles such as FIFA Online 3 and ongoing updates to Dungeon&Fighter. China saw a 40% revenue rise, supported by stable performance and content updates for its core titles. Japan’s 171% revenue growth was largely attributed to the consolidation of gloops, while North American and European markets faced challenges, showing flat or declining results on a constant currency basis.

The mobile segment emerged as a major contributor, with revenues increasing tenfold to ¥6,887 million compared to the same period in 2012. This shift reflects the company's broader transition toward synchronous online play and mobile monetization. Looking ahead, Nexon maintains a positive outlook for the fourth quarter of 2013, projecting continued revenue growth between ¥31,775 million and ¥33,606 million. The company continues to leverage its position as a pioneer in the free-to-play industry to capitalize on global market momentum, supported by strategic publishing agreements and studio acquisitions.