Nexon Consolidated Financial Results for the Three Months Ended March 31, 2017

Key insights

7 takeaways

01
Nexon reported a 30.1% year-over-year revenue increase to ¥74,792 million for Q1 2017, with operating income surging 973.8% to ¥39,762 million.See it on page 5
02
The company achieved a net income of ¥19,812 million in Q1 2017, marking a significant recovery from the ¥6,079 million net loss recorded in the same period of 2016.See it on page 13
03
The PC online title Dungeon&Fighter in the Chinese market served as the primary driver for growth, effectively offsetting performance declines in other geographic segments.See it on page 5
04
Nexon maintains a strong financial position with total equity of ¥411,619 million and an equity ratio of 84.9% as of March 31, 2017.See it on page 16
05
The company recorded a finance cost of ¥14,718 million during the quarter, primarily due to foreign exchange losses.See it on page 5
06
To address previous deficits and improve capital flexibility, the company transferred ¥41,476 million from capital surplus to retained earnings.See it on page 16
07
Nexon projects Q2 2017 revenue to reach between ¥116,102 million and ¥119,603 million, driven by content updates for established PC franchises and an expanding mobile portfolio.See it on page 7

Summary

Nexon achieved robust financial growth during the first quarter of 2017, characterized by a 30.1% year-over-year revenue increase to ¥74,792 million. This performance represents a significant turnaround from the previous year, with operating income surging by 973.8% to reach ¥39,762 million. Net income also saw a substantial recovery, climbing to ¥19,812 million from a net loss of ¥6,079 million in the same period of 2016. The company maintains a stable financial foundation, ending the quarter with total equity of ¥411,619 million and a strong equity ratio of 84.9%.

The primary catalyst for this success was the sustained popularity of the PC online title Dungeon&Fighter within the Chinese market. This regional strength effectively offset performance declines in other geographic segments. While the company navigated a notable finance cost of ¥14,718 million, largely attributed to foreign exchange losses, the overall trajectory remains positive. To bolster long-term capital flexibility and address previous deficits, the company executed a strategic transfer of ¥41,476 million from capital surplus to retained earnings.

Looking ahead, the company anticipates continued momentum throughout the second quarter of 2017, with projected revenue between ¥116,102 million and ¥119,603 million. This optimistic outlook is supported by planned content updates for established PC franchises and the expected contributions from an expanding portfolio of mobile titles. By leveraging its core intellectual properties and focusing on key global markets, the organization is positioning itself for sustained profitability and operational stability throughout the remainder of the fiscal year.