Revenues Up 16% Year-over-Year; Solid Performance from Live Games and New Titles
NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online and mobile games, today announced financial results for its second quarter ended June 30, 2015.
“Our solid second quarter results were driven by strong performance in both new and existing games,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “We saw impressive results from key existing titles in Korea, Dungeon&Fighter in China and our new title DomiNations in the U.S. and Europe , all of which are off to very strong starts in their respective geographies. In addition, we launched MapleStory2 in July to customer and critical acclaim. We are also pleased with the momentum we saw in mobile, particularly in native mobile games, which doubled in revenues year-over-year. We remain on track to launch several other highly-anticipated titles in the second half of 2015. Recently, we strengthened our relationship with Electronic Arts through PC online games Need for Speed™ Edge and Titanfall™. I am proud that Nexon is the partner of choice for developers seeking free-to-play expertise and an online publishing platform around the world.”
Second Quarter 2015 Highlights:
- Second quarter revenues were 42.7 billion yen, up 16% year-over-year – near the high end of the Company’s expectations. Mobile game revenues were 10.2 billion yen, up 20% year-over-year. Native game revenues more than doubled year-over-year and accounted for about two-thirds of mobile revenues. PC online game revenues were 32.5 billion yen, up 14% year-over-year.
- Operating income was 11.3 billion yen, up 14% year-over-year. Operating income outperformance was primarily due to strong performance by Dungeon&Fighter in China and some lower-than-planned expenses.
- Net income (Net income attributable to owners of the parent) was 13.0 billion yen, up about 3.2 times year-over-year. The outperformance against Nexon’s outlook was primarily due to lower-than-expected tax expenses, as well as foreign exchange gains.
Third Quarter 2015 Outlook:
- Expect third quarter 2015 revenues in the range of 46.3 to 49.7 billion yen.
- Expect mobile revenues in the range of 9.4 to 10.5 billion yen.
- Expect operating income in the range of 14.3 to 17.3 billion yen.
- Expect net income in the range of 12.9 to 15.3 billion yen.
