Nexon First Quarter 2019 Financial Results

Key insights

6 takeaways

01
Nexon reported record Q1 2019 financial results with ¥93.1 billion in revenue, a 3% year-over-year increase as-reported and a 7% rise on a constant currency basis.See it on page 1
02
Operating income reached ¥52.6 billion and net income totaled ¥53.4 billion, both exceeding initial company outlooks despite a ¥2.9 billion impairment loss on prepaid royalties.See it on page 1
03
Revenue growth was primarily driven by core franchises including Dungeon&Fighter in China, MapleStory in Korea, and FIFA ONLINE 4.See it on page 1
04
Legacy titles demonstrated significant longevity, with the 15-year-old KartRider franchise tripling its year-over-year revenue and the mobile version of Crazy Arcade BnB exceeding 10 million downloads in its first month.See it on page 1
05
The company projects continued momentum for Q2 2019, forecasting year-over-year revenue growth between 9% and 19% on an as-reported basis.See it on page 1
06
Nexon currently maintains a global catalog of over 60 live games, focusing its growth strategy on long-term community management and mobile platform transitions.See it on page 3

Summary

Nexon achieved record-breaking financial performance in the first quarter of 2019, driven by the sustained popularity of its core intellectual properties and effective live service operations. The company reported revenues of ¥93.1 billion, representing a 3% year-over-year increase as-reported and a 7% rise on a constant currency basis. Operating income reached ¥52.6 billion, while net income totaled ¥53.4 billion, both figures exceeding initial company outlooks despite a ¥2.9 billion impairment loss on prepaid royalties.

The company’s growth strategy centers on the longevity of established franchises and successful transitions to mobile platforms. Key titles such as Dungeon&Fighter in China, MapleStory in Korea, and FIFA ONLINE 4 served as primary revenue drivers. Furthermore, the company demonstrated the enduring appeal of its legacy portfolio, noting that the 15-year-old KartRider franchise achieved a three-fold year-over-year revenue increase, while the mobile release of the 18-year-old Crazy Arcade BnB surpassed 10 million downloads within its first month.

Geographically, the results reflect a global operation headquartered in Japan with significant market activity in Korea and China. The financial data is derived from consolidated corporate reporting for the period ending March 31, 2019. Looking ahead, the company maintains a positive outlook for the second quarter of 2019, projecting year-over-year revenue growth between 9% and 19% on an as-reported basis. This forecast underscores a continued commitment to leveraging its expertise in live game operations and community management to sustain long-term engagement across its global catalog of over 60 live games.