[News] Nexon Reports Third Quarter Financial Results

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TOKYO--(BUSINESS WIRE)--NEXON Co., Ltd. ("Nexon") (3659.TO), a worldwide leader in free-to-play online games, today announced financial results for its third quarter ended Sept. 30, 2014. “Our third quarter results exceeded the high end of our outlook largely due to strength in Korea, particularly in mobile, as well as our continuing focus on improving game quality, which translated into solid performance in both PC and mobile titles,” said Owen Mahoney, president and chief executive officer. “

[maplefreak26]

Woah, they're expecting a big increase in revenue for North America.

[fodjgngf]

Wow Nexon NA had one of the strongest quarters they've had in a long time.

And they apparently have nothing huge lined up for maplestory, just more Black Heaven.

[Spadow]

And they apparently have nothing huge lined up for maplestory, just more Black Heaven.

It is listed as a tier 1 update (major update). Black Heaven isn't done yet. Who knows?

[ChronosXIII]

As a whole, they actually did better than they predicted this quarter.

Though I don't see how that lead to them expecting a 20-30% increase in North America. Not exactly much coming down the pipeline in the next few months.

[byakugan]

In before Bonus Bonus Potential in 2015

[CarrionCrow]

I would never have guessed that NA was in a better place compared to earlier.

My guess was that only a well made 5th job and content to fit that could make it go up again. The current line of updates have been nothing but uninspired fluff.

[maplefreak26]

Now that I've thought about it, maybe the reasoning for the projected increase in revenue for North America is really a mixture of better user acquisition/retention and the successful launch of Legion of Heroes and hopes of Dirty Bomb being successful?

Legion of Heroes soft launched in mid September and it may have had a slight but positive impact on the numbers, the game officially went live worldwide in mid October. IIRC, one of the CMs on the forums mentioned that the game was supposed to launch later but they were going to release the game earlier than expected [this was when the Closed Beta was over] because "they couldn't wait". It already has between 1 million to 5 million downloads and it hasn't even launched on iOS yet. Dirty Bomb just launched their new forums (using vanillaforums as the base and the host) and I've seen multiple instances where there are hints that the beta is about to be over.

*NOTE: None of the numbers below factor in the transitioning from JGAAP to IFRS.
Region Fun Facts:
(Percetages were rounded to the nearest whole number)
81% increase in China between Q3 2011 to Q3 2014.
134% increase in Korea between Q3 2011 to Q3 2014.
109% increase in Japan between Q3 2011 to Q3 2014.
19% decrease in North America between Q3 2011 to Q3 2014.
38% decrease in Europe/Others between Q3 2011 to Q3 2014.

Revenue By Region Changes:
Q3 2011: China 36%; Korea 35%; Japan 14%; 7% NA; 7% EU (I know it doesn't add up to 100)
Q3 2014: China 34%; Korea 44%; Japan 16% 3% NA; 3% EU

Other:
88% increase in total revenue between Q3 2011 to Q3 2014.
51% increase in operating income between Q3 2011 to Q3 2014.

It's interesting to see how they pay extreme attention to the North American market when it decreases but Japan has been on a quarterly decline ever since the acquisition of GLOOPS and Europe/Other have been dropping like mad (then again, you could argue that when they say western market they mean Europe).

[fodjgngf]

It's interesting to see how they pay extreme attention to the North American market when it decreases but Japan has been on a quarterly decline ever since the acquisition of GLOOPS and Europe/Other have been dropping like mad.

I think they still believe that browser based gaming will save their acquisition of gloops.

The report said something that they've made 30b yen of the 35b yen they spent acquiring gloops.