Fourth Quarter Revenues Up 25% Year-over-Year Fiscal Year Revenues Up 11%
NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online games, today announced financial results for its fourth quarter and fiscal year ended December 31, 2014.
“2014 was marked by our relentless focus on quality, and I’m pleased with the progress we made,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “Our quality-driven strategy resulted in year-over-year revenue growth of 52% in Korea, powered by the strength of our PC online and mobile titles; in China, we introduced series of high-quality content updates for Dungeon&Fighter throughout the year; and North America showed positive revenue growth in 2H. We are excited to enter 2015 with the best pipeline in Nexon’s history.”
Full Year 2014 Highlights:
Full year revenues were 172.9 billion yen, up 11% year over year, due to factors including: significant increase revenue of EA SPORTSTM FIFA Online 3 and EA SPORTSTM FIFA Online 3M in Korea as certain events, promotion and contents update coordinated with the FIFA World Cup; strong sales of both existing PC online game titles and mobile game titles in Korea; high-quality content updates for Dungeon&Fighter in China throughout the year; and the weaker yen.
Operating income was 45.5 billion yen, a 10% decrease year-over-year, due to impairment loss and increases in royalty payments in line with strong sales, personnel costs, stock option costs, commission expense and a change in geographic revenue mix.
Net Income was 29.3 billion yen, a 3% decrease year-over-year.
Fourth Quarter 2014 Highlights:
Fourth quarter revenues were 42.9 billion yen, up 25% year-over-year.
Operating loss was 0.7 billion yen versus 0.3 billion yen of Operating income a year ago.
Net loss was 4.5 billion yen versus 4.4 billion yen of Net loss a year ago.
First Quarter 2015 Outlook:
Expect first quarter 2015 revenues in the range of 44.3 to 47.7 billion yen.
Expect mobile revenues in the range of 7.4 to 8.1 billion yen.
Expect Operating income in the range of 14.7 to 18.1 billion yen.
Expect Net income in the range of 12.8 to 15.7 billion yen.
Conference Call and Replay
Nexon management will host an earnings presentation for analysts, investors and the media, which will be conducted in Japanese with simultaneous English interpretation today, at 5:30 p.m. Japan Standard Time (JST) / 3:30 a.m. Eastern Standard Time (EST) to discuss Nexon’s financial results and outlook. A video replay of the presentation will be made available via Nexon’s Investor Relations website a few days after the presentation.
There will also be a live conference call conducted in English on the same day at 10:00 p.m. JST / 8:00 a.m. EST. The conference call will consist of brief remarks made by the management team followed by a Q&A session.
English Conference Call
- Time: February 12 at 10:00 p.m. JST / 8:00 a.m. EST
- Telephone Number: +81-3- 4570-1816 (Japan), +1- 6465-02-5131 (US), +44-20-7660-2114 (UK), +852-306-00227 (Hong Kong), +65-642-98366 (Singapore), +82-234-831-910 (Korea)
- Pass Code: 860342#
A replay of the call will be available about 30 minutes after the conclusion of the conference call and can be accessed until February 19, 2015. A transcript of the call will be available within several days on Nexon’s Investor Relations website.
- English Conference Call Replay
- Replay Telephone Number: +81-3-4570-2856 (Japan)
- Reference Number: 214301#
For additional information regarding Nexon’s fourth quarter and full year 2014 financial results, please visit the Investor Relations section of Nexon’s website at http://ir.nexon.co.jp/en/.