Nexon Q3 2017 Financial Results: Global Growth

Key insights

6 takeaways

01
Nexon reported record Q3 2017 revenue of 60.4 billion yen, a 36% year-over-year increase as-reported or 27% on a constant currency basis.See it on page 2
02
Operating income reached 22.7 billion yen and net income totaled 19.6 billion yen, both exceeding the company's initial financial outlooks.See it on page 2
03
Growth was primarily driven by the strong performance of Dungeon&Fighter in China, the FIFA Online 3 franchise, and the launch of the mobile title AxE.See it on page 1
04
Nexon acquired California-based Pixelberry Studios to expand into the interactive narrative genre and reach a broader female demographic.See it on page 1
05
The company extended its partnership with Electronic Arts to publish FIFA Online 4 in Korea, maintaining a focus on high-performing established franchises.See it on page 1
06
Q4 2017 revenue is projected between 48.7 and 52.8 billion yen, supported by the upcoming launch of MapleStory2 in China and the release of OVERHIT.See it on page 2

Summary

Nexon achieved record-breaking financial performance in the third quarter of 2017, driven by sustained engagement in its core online game portfolio and strategic expansion efforts. The company reported revenues of 60.4 billion yen, representing a 36% year-over-year increase as-reported, or 27% on a constant currency basis. Operating income reached 22.7 billion yen, while net income totaled 19.6 billion yen, both exceeding previous company outlooks. These results were primarily bolstered by the strong performance of Dungeon&Fighter in China, the continued success of the FIFA Online 3 franchise, and the launch of AxE.

The company’s growth strategy centers on maintaining long-term player engagement through live operations and expanding its reach in the Western mobile market. To this end, Nexon acquired California-based Pixelberry Studios, a move designed to capture the interactive narrative genre and engage a broader female demographic. Furthermore, the company extended its partnership with Electronic Arts to publish FIFA Online 4 in Korea, reinforcing its commitment to established, high-performing franchises.

Looking ahead to the fourth quarter of 2017, the company maintains a positive outlook, projecting revenues between 48.7 and 52.8 billion yen. This forecast is supported by a robust pipeline of upcoming releases, including the full launch of MapleStory2 in China and the introduction of new titles such as OVERHIT. By balancing the longevity of its existing PC online titles with targeted mobile acquisitions and new market entries, the company continues to solidify its position as a global leader in the free-to-play gaming sector.