Nexon Q1 2017 Investor Presentation

Key insights

6 takeaways

01
Nexon reported record Q1 2017 revenue of ¥74.8 billion, representing a 30% year-over-year increase.See it on page 3
02
The primary driver of Q1 growth was the flagship title Dungeon&Fighter, which saw a 70% revenue surge in the Chinese market.See it on page 9
03
Operating income reached ¥39.8 billion, though net income was negatively impacted by a ¥15.9 billion foreign exchange loss.See it on page 22
04
The company is pursuing a dual-growth strategy of internal development and external acquisitions to expand its presence in Western markets.See it on page 30
05
Nexon is diversifying its portfolio with new PC and mobile titles, specifically citing LawBreakers and Titanfall: Assault.See it on page 18
06
The company maintains a positive outlook for Q2 2017, supported by a pipeline of new releases and continued leveraging of established intellectual property.See it on page 16

Summary

Nexon achieved record-breaking financial performance in the first quarter of 2017, characterized by a 30% year-over-year revenue increase to ¥74.8 billion. This growth was primarily fueled by the exceptional performance of the flagship title Dungeon&Fighter within the Chinese market, which experienced a 70% surge in regional revenue. While operating income reached a robust ¥39.8 billion, exceeding initial expectations, net income was tempered by a ¥15.9 billion foreign exchange loss, highlighting the volatility inherent in the company’s global operations.

The company’s strategic trajectory emphasizes long-term expansion through a dual focus on internal development and external acquisitions. By diversifying its portfolio with new PC and mobile titles, such as LawBreakers and Titanfall: Assault, the organization aims to solidify its presence in Western markets while maintaining its dominance in Asia. This approach is supported by a disciplined investment strategy intended to scale operations and mitigate risks associated with shifting consumer preferences in the digital entertainment sector.

Looking toward the second quarter of 2017, the outlook remains positive, underpinned by a strong pipeline of upcoming releases. The company continues to leverage its established intellectual property to drive engagement while simultaneously exploring new growth avenues. By balancing aggressive market expansion with a commitment to operational efficiency, the firm remains positioned to capitalize on the ongoing global demand for high-quality interactive entertainment across both mobile and personal computer platforms.