Nexon Consolidated Financial Results for the Fiscal Year Ended December 31, 2016

Nexon experienced a challenging fiscal year in 2016, characterized by a contraction in overall financial performance. Annual revenue declined by 3.8 percent to ¥183,128 million, while net income attributable to owners of the parent plummeted by 63.5 percent to ¥20,133 million. This downturn was largely precipitated by the strengthening of the Japanese yen, which created substantial foreign exchange headwinds, alongside significant impairment losses that weighed heavily on the bottom line. Consequently, basic earnings per share fell from ¥127.86 in the previous year to ¥46.26.

Geographically, the company’s performance was uneven across its global operations. While the Chinese market demonstrated resilience through growth in PC online game consulting fees, North American operations struggled, recording a notable revenue decline and increased segment losses. Despite these regional difficulties, the company maintained a stable financial foundation with total assets of ¥441.8 billion and a robust equity position of ¥377,694 million. The Korea segment remained a critical pillar of the business, contributing significantly to consolidated revenue through its established portfolio of titles.

Nexon continues to operate under an item-based revenue model, prioritizing free-to-play access to lower barriers to entry while monetizing through in-game purchases. The company’s long-term strategy focuses on leveraging high-quality content, such as its core franchises Dungeon&Fighter and MapleStory, alongside strategic partnerships to drive enterprise value. Looking toward the first quarter of 2017, the company anticipates a return to growth in revenue and operating income, bolstered by seasonal content updates in key Asian markets and a planned resumption of dividend payments, signaling a commitment to stabilizing shareholder returns despite the volatility observed throughout the 2016 fiscal period.