NEXON Consolidated Financial Results: Three Months Ended March 31, 2015

Key insights

5 takeaways

01
Nexon reported a 9.4% year-on-year revenue increase to 51,972 million yen for Q1 2015, with net income rising 14.8% to 18,539 million yen.See it on page 5
02
PC online gaming remained the primary revenue driver at 43,210 million yen, while the mobile division grew to 8,370 million yen.See it on page 5
03
The core title Dungeon&Fighter served as the primary catalyst for financial performance, maintaining strong engagement in the Korean and Chinese markets.See it on page 5
04
Management projects revenue growth between 9.3% and 12.5% for the first half of 2015, driven by new mobile titles and strategic content updates.See it on page 7
05
Operating margins are expected to contract as the company increases expenditures on marketing, royalties, and commissions to capture further market share.See it on page 7

Summary

Nexon achieved significant financial growth during the first quarter of 2015, characterized by a 9.4 percent year-on-year revenue increase to 51,972 million yen. This upward trajectory was supported by strong performances across both PC online and mobile gaming segments, with PC revenue reaching 43,210 million yen and mobile revenue climbing to 8,370 million yen. Net income attributable to owners of the parent rose by 14.8 percent to 18,539 million yen, while operating income reached 22,219 million yen, underscoring the company’s successful monetization strategies.

The primary catalyst for these results was the sustained popularity of core titles, most notably Dungeon&Fighter, which maintained robust engagement across key markets in Korea and China. This regional strength provided a stable foundation for the company’s broader portfolio, allowing for consistent growth despite the inherent volatility of the global gaming industry. The expansion of the mobile gaming division further diversified revenue streams, contributing to the overall positive financial momentum observed during the three-month period ending March 31, 2015.

Looking ahead to the first half of 2015, projections indicate continued revenue growth between 9.3 percent and 12.5 percent. This outlook is predicated on the deployment of strategic content updates and the introduction of new mobile titles. However, the company anticipates a contraction in operating margins as it scales operations. Increased expenditures related to royalties, commissions, and marketing efforts are expected to exert pressure on profitability, reflecting a deliberate investment strategy aimed at capturing further market share and sustaining long-term growth in a competitive landscape.