Solid Fundamentals amidst Japanese Yen Appreciation, Continued to Strengthen Strategic Partnerships with Renowned Game Developers.
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, 2016.
“Our solid second quarter results reflect strong execution and good performance from our China business,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “I am also pleased with the important strategic progress we made during the quarter, including our partnership with renowned Japanese developer Sansho Studios and our acquisition of wellgames, the Korean developer of SPECIAL SOLDIER, a high-quality first person shooter for mobile devices. Our best-in-class roster of partnerships remains a cornerstone of our strategy to deliver high-quality, tailored content to players around the world.”
Mr. Mahoney continued, “We are excited about our rich pipeline of mobile and PC online games for the second half of 2016 and beyond, including highly-anticipated titles such as MapleStoryM, Dungeon&Fighter 2D / 3D mobile (working title), LawBreakers and Moonlight Blade, and we look forward to delivering them to our global player base.”
Second Quarter 2016 Highlights:
- Second quarter revenues were 38.1 billion yen, down 11% year-over-year on as-reported basis, up 4% on constant currency basis, around low-end of Nexon’s outlook.
- Operating income was 13.4 billion yen, around high-end of Nexon’s outlook.
- Net income attributable to owners of the parent was 7.6 billion yen, which was below Nexon’s outlook primarily due to FX loss in U.S. dollar-denominated cash deposits.
Third Quarter 2016 Outlook:
- Revenues expected to be in the range of 38.4 to 41.3 billion yen.
- PC online game revenues expected to be in the range of 29.4 to 31.4 billion yen.
- Mobile game revenues expected to be in the range of 8.9 to 9.9 billion yen.
- Operating income expected to be in the range of 10.6 to 12.9 billion yen.
- Net income attributable to owners of the parent expected to be in the range of 9.6 to 11.6 billion yen.