Game developer -Nexon reports its results for the second quarter of 2022.
Exciting stuff about billions of yen in income.
Record second quarter revenue, mainly driven by China Dungeon&Fighter, MapleStory,
FIFA ONLINE 4 and Dungeon&Fighter Mobile in Korea
Operating income up 47% year-on-year
Board of Directors Approves Three-Year Share Buyback Policy
to redeem up to 100 billion yen
TOKYO – August 9, 2022 – NEXON Co., Ltd. (Nexon) (3659.TO), a global leader in virtual worlds, today announced financial results for its second quarter ended June 30, 2022.
“Nexon’s record second-quarter revenue was driven by a combination of big games and top-notch live operations,” said Owen Mahoney, President and CEO of Nexon. ‘Improved MapleStory performance in Koreaand the Dungeon & Fighter franchise in both China and Korea reaffirms our thesis that virtual worlds grow at a steady, albeit non-linear pace, and that slow intervals very often foreshadow new dynamic growth.
‘Nexon is particularly resistant. We built this business to withstand disruption caused by events such as inflation, exchange rates and supply chain issues. Regular revenue from core franchises gives us the time and creative freedom to get it right on new titles in development.
Recent highlights include:
In the second quarter, Nexon achieved record sales. Group revenue is within the range of our outlook – 84.1 billion yenup 50% year-over-year on a reported basis and 40% on an annual basis at constant currencies.
Operating profit increased 47% year over year for 22.7 billion yen and in our outlook.
The net income was 24.7 billion yen up 176% year-over-year – beating our forecast. The results were driven by a foreign exchange gain of 27.7 billion yenmainly on WE cash denominated in dollars.
The quarterly performance was driven by the growth of the main franchises, including Dungeon&Fighter in ChinaMapleStory and FIFA ONLINE 4 and Dungeon&Fighter Mobile in Korea.
In Korea, MapleStory’s revenue grew 38% year over year. MAUs, Paid Users, and ARPPU all increased year over year thanks to the well-received 19th Anniversary Update in April and the Summer Update in June.
Combined FIFA ONLINE 43 Mobile and PC revenue significantly exceeded our expectations thanks to the success of events and trade promotions. MAUs, paid users and ARPPU all increased year over year. As a result, its revenue more than doubled and surpassed the record set last quarter.
Also in Korea, Dungeon&Fighter Mobile maintained its strength as user engagement remained high, boosted by rich content and carefully managed live operations. Dungeon&Fighter on PC grew 34% year over year.
In China, second quarter revenue increased 43% year-on-year on a reported basis and 25% year-on-year at constant currency1. Dungeon&Fighter’s revenue grew year over year thanks to Labor Day sale of packages.
In North America and Europerevenue grew 30% year-over-year driven by MapleStory M and new game contributions.
Rest of the World revenue grew 77% year-over-year, driven by growth of MapleStory franchises and contributions from new games.
In Japan, revenue was down 1% year over year. Although there was a contribution from Counter:Side, this was offset by revenue declines from TRAHA and V4.
On June 15, 2022Nexon completed the three-year 100 billion yen share buyback announced on November 10, 2020.
On August 9 Nexon’s Board of Directors has approved a new 100 billion yen share buyback policy. The shares will be redeemed by August 2025guided by factors such as investment opportunities, financial and market conditions.
Outlook for the third quarter of 2022:
Expect revenues of around JPY96.0 at 104.0 billion yenup 27% to 37% YoY on a reported basis, up 13% to 22% YoY in constant currency1
Expect an operating result of JPY30.1 at 36.6 billion yen
Expect a net income2 of JPY21.6 at 26.4 billion yen
Forex Sensitivity: Each one japanese yen move against the WE dollar would have the following impact on our financial statements for the third quarter of 2022
– Income: 0.72 billion JPY
– Operating result: 0.26 billion JPY
Audio archive and transcription
An audio archive and transcript will be available on Nexon’s Investor Relations website at https://ir.nexon.co.jp/en/ after the earnings conference call. This press release is prepared to provide investors with background information about Nexon and is intended to provide investors and analysts with financial and operating information about Nexon, but not to solicit or recommend a sale or purchase of any stock or other Nexon titles.
About NEXON Co., Ltd. https://company.nexon.co.jp/en/
Founded in 1994, NEXON Co., Ltd. (Nexon) (3659.TO) is a company engaged in the production, development and operation of online games and virtual worlds. First listed on the Tokyo Stock Exchange in December 2011Nexon was placed on JPX400 in 2015 and added to the Nikkei 300 stock index in 2017. In 2020, Nexon was added to the Nikkei 225. Nexon currently offers over 45 live games across multiple platforms, including mobile, and available in over 190 countries. Major game franchises include MapleStory, KartRider, and Dungeon&Fighter. In 2021, Nexon completed the acquisition of Embark Studios ABa company based in Stockholm, Swedendeveloping several projects for worldwide distribution.