Nexon Q1 2015 Investor Presentation

Key insights

6 takeaways

01
Nexon reported Q1 2015 total revenues of ¥52.0 billion, a 9% year-over-year increase, and an operating income of ¥22.2 billion, a 5% increase.See it on page 6
02
Net income for the quarter reached ¥18.5 billion, representing a 15% year-over-year growth, supported by a ¥10 billion share repurchase program.See it on page 6
03
Financial performance exceeded the company's initial outlook due to strong results in China and Korea and disciplined management of marketing and HR expenditures.See it on page 6
04
The company is aggressively expanding its mobile pipeline, highlighted by a co-development partnership with Square Enix for a mobile version of Final Fantasy XI.See it on page 3
05
Growth in China was driven by a rebound in the flagship title Dungeon&Fighter, while global portfolio diversification included the launch of DomiNations in North America and Europe.See it on page 3
06
Nexon projects continued momentum for Q2 2015, forecasting year-over-year revenue growth between 9% and 17%.See it on page 14

Summary

Nexon’s first-quarter 2015 investor presentation outlines a period of strong financial performance and strategic execution, characterized by revenue growth and successful operations in key Asian markets. The company reported total revenues of ¥52.0 billion, representing a 9% year-over-year increase on an as-reported basis, alongside an operating income of ¥22.2 billion, a 5% increase over the same period in 2014. These results exceeded the high end of the company's initial outlook, driven primarily by robust performance in China and Korea during the latter half of the quarter, as well as disciplined management of marketing and human resource expenditures.

The company’s growth strategy remains focused on leveraging its core PC titles while aggressively expanding its mobile pipeline. In China, the flagship title Dungeon&Fighter rebounded following a slow start to the Lunar New Year, while Korea saw strong contributions from both existing PC games and new mobile launches. Japan remains a strategic focus for improvement, with the company announcing a co-development partnership with Square Enix for a mobile version of Final Fantasy XI. Globally, the company continues to diversify its portfolio through high-quality launches like DomiNations in North America and Europe, and the ongoing development of mobile versions for established PC franchises.

Financial health remains a priority, evidenced by a net income of ¥18.5 billion—a 15% year-over-year increase—and the execution of a share repurchase program totaling up to ¥10 billion. Looking ahead to the second quarter of 2015, the company anticipates continued year-over-year revenue growth between 9% and 17%. The outlook reflects a commitment to sustaining momentum through a robust pipeline of upcoming PC and mobile titles, supported by a stable cash position and a clear focus on long-term operational evolution across global markets.