NEXON Q1 2016 Investor Presentation

Nexon achieved strong financial performance in the first quarter of 2016, generating ¥57.5 billion in revenue. This growth, representing an 11% year-over-year increase, was primarily fueled by the sustained popularity of Dungeon&Fighter in China alongside several key titles within the Korean market. Despite this top-line success, the company recorded a net loss of ¥6.3 billion for the period. This bottom-line deficit was largely attributable to a substantial ¥22.6 billion impairment loss related to the goodwill of its subsidiary, gloops, as well as unfavorable foreign exchange fluctuations involving the Korean Won and Chinese Yuan.

Strategic expansion remained a core priority during this period, as evidenced by the full acquisition of Big Huge Games and a 22.4% equity stake in NAT Games. These investments reflect a broader commitment to diversifying the company’s portfolio and strengthening its development capabilities. Looking ahead to the second quarter of 2016, expectations for operating income range between ¥11.5 billion and ¥13.9 billion. Management anticipates that reduced marketing expenditures and lower amortization costs will effectively mitigate ongoing revenue headwinds caused by currency volatility.

The company maintains a transparent approach to financial reporting, with the second-quarter results scheduled for release on August 10, 2016. This disclosure will be supported by both a Japanese-language presentation and an English-language conference call, ensuring comprehensive communication with global stakeholders. By balancing aggressive asset acquisition with disciplined cost management, the organization aims to stabilize its financial trajectory and capitalize on its established intellectual property in the competitive global gaming landscape.