Nexon Third Quarter 2015 Financial Results

Key insights

6 takeaways

01
Nexon reported Q3 2015 revenue of 49.8 billion yen, a 9% year-over-year increase driven by growth in both PC online (10%) and mobile (7%) game segments.See it on page 1
02
Net income rose 41% year-over-year to 19.2 billion yen, bolstered by strong performance in core titles and favorable foreign exchange gains.See it on page 1
03
Operating income reached 18.4 billion yen, a 22% year-over-year improvement attributed to high-performing PC titles and lower-than-expected human resources costs.See it on page 1
04
Key revenue drivers included the PC title Dungeon&Fighter in China and mobile games such as EA SPORTS FIFA Online 3 M and DomiNations.See it on page 1
05
The company is expanding its North American footprint through new partnerships, including agreements with Respawn Entertainment and Particle City for Titanfall mobile titles and distribution rights with QC Games.See it on page 1
06
Nexon projects Q4 2015 revenue between 40.1 and 42.9 billion yen, with operating income expected to range from 9.7 to 11.8 billion yen.See it on page 1

Summary

Nexon reported strong financial performance for the third quarter of 2015, exceeding internal guidance across all primary metrics. The company achieved total revenues of 49.8 billion yen, representing a 9% year-over-year increase. This growth was driven by a 10% rise in PC online game revenue, anchored by the performance of Dungeon&Fighter in China, and a 7% increase in mobile game revenue, bolstered by titles such as EA SPORTS FIFA Online 3 M and DomiNations.

Operating income reached 18.4 billion yen, a 22% year-over-year improvement, attributed to the robust performance of key PC titles and lower-than-anticipated human resources costs. Net income attributable to owners of the parent rose significantly by 41% year-over-year to 19.2 billion yen, aided by favorable foreign exchange gains. These results reflect the company’s strategic focus on high-quality content and the expansion of its global footprint through new partnerships.

The company’s geographic scope remains centered on its core Asian markets, while simultaneously expanding its reach in North America through new publishing and development agreements. Notable partnerships include collaborations with Respawn Entertainment and Particle City for mobile games based on the Titanfall intellectual property, as well as an agreement with QC Games for distribution rights. Looking ahead to the fourth quarter of 2015, the company projects revenues between 40.1 and 42.9 billion yen, with operating income expected to range from 9.7 to 11.8 billion yen. These projections underscore a continued commitment to the free-to-play model across its portfolio of nearly 150 titles worldwide.