Delivered Solid Quarter; Revenues Exceeded Outlook Driven by Korea and China Business Highly Anticipated Titles to be Exhibited at G-STAR 2016
NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online and mobile games, today announced financial results for its third quarter ended September 30, 2016.
“We are pleased with our third quarter performance, which exceeded our outlook, driven by strong performance in our PC online game business in China and Korea. We also are seeing positive early performance from many of our new mobile titles, and look forward to exhibiting some of our most highly anticipated titles at the upcoming G-STAR*, including Dungeon & Fighter: Spirit, Project Dynasty Warriors (tentative), DARK AVENGER 3, LawBreakers and Moonlight Blade,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “This is an exciting time for Nexon as we begin to realize the benefits of our many recent strategic investments and partnerships and extensive internal development efforts. With a strong pipeline of titles and plans to continue to expand our presence into global game market, we have tremendous opportunity ahead.”
Third Quarter 2016 Highlights:
- Third quarter revenues were 44.3 billion yen, down 11% year-over-year on as-reported basis – exceeded our outlook driven by:
- Korea: Exceptionally strong performance of MapleStory; strong performance of Dungeon&Fighter
- China: Solid performance of Dungeon&Fighter with an early strong momentum of National Day update
- Operating income was 16.3 billion yen, exceeded our outlook due to:
- Outperformance of revenues, particularly in China with higher margin
- Lower-than-planned costs including marketing costs
- Net income attributable to owners of the parent was 7.6 billion yen, below outlook primarily due to FX loss in U.S. dollar-denominated cash deposits and account receivables
Fourth Quarter 2016 Outlook:
- Expect fourth quarter 2016 revenues in the range of 39.3 to 42.2 billion yen.
- Expect PC online game revenues in the range of 28.0 to 29.7 billion yen.
- Expect mobile game revenues in the range of 11.3 to 12.5 billion yen.
- Expect operating income in the range of 8.2 to 10.3 billion yen.
- Expect net income attributable to owners of the parent in the range of 7.7 to 9.5 billion yen.
Conference Call and Replay:
Nexon management will host two conference calls to discuss Nexon’s financial results and outlook. A conference call for domestic investors, analysts and the media will be held today at 6:00 p.m. JST / 4:00 a.m. EST, and will be conducted in Japanese. A conference call for foreign investors, analysts and the media, which will be conducted in English, will be held at 10:00 p.m. JST / 8:00 a.m. EST on the same day. Each conference call will consist of brief remarks made by management team followed by a Q&A session.
Japanese Conference Call
Time: November 10 at 6:00 p.m. JST / 4:00 a.m. EST
Telephone Number: +81-3-4570-1817 (Japan)
Pass Code: 915054#
A replay of the call will be available about 30 minutes after the conclusion of the conference call and can be accessed until November 17, 2016.
Japanese Conference Call Replay
Replay Telephone Number: +81-3-4570-4130 (Japan)
Reference Number: 219563#
English Conference Call
Time: November 10 at 10:00 p.m. JST / 8:00 a.m. EST
Telephone Number: +81-3-4570-1816 (Japan), +1-646-502-5131 (USA),
+44-20-7660-2114 (UK), +852-306-00227 (Hong Kong),
+65-642-98366 (Singapore), +82-234-831-910 (Korea)
Pass Code: 149807#
A replay of the call will be available about 30 minutes after the conclusion of the conference call and can be accessed until November 17, 2016. 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: 219565#
For additional information regarding Nexon’s third quarter 2016 financial results, please visit the Investor Relations section of Nexon’s website at http://ir.nexon.co.jp/en/.
This press release is prepared to offer reference information about Nexon to investors and is intended to generally provide investors and analysts with financial and operational information about Nexon, but not to solicit or recommend any sale or purchase of stock or other securities of Nexon.