[News] NEXON Releases Fourth Quarter and Full Year 2011 Financial Results

[ChronosXIII]

http://ir.nexon.co.jp/cms/pdf/eibun_...8a7af39371.pdf

Their income decreased in the 4th quarter due to "aggressive hacking" (page 7). Pretty trivial though, since they still experienced overall growth. More importantly, MS2. Not as appealing an idea to me as it used to be tbh.

Wow, reading the North American part of that article makes me lol. "Responding rapidly and further building/refining out the game's internal infrastructure." Yeah........

The security initiatives they are taking sound fancy. Putting all their security efforts into the new guy? Wow, what a crappy job.

[byakugan]

How does GMS keep making tons of money with constant and consistent screwups? They actually got more profit than from the previous year? Amazing.

The actual question is, FOR GOD'S SAKE, how is it that a company that is so well administrated cannot f'ucking realize the best prevention method to all these issues ingame is more human capital?. From it's own development department to hiring more GM's that can keep an eye over the game, it is so f'ucking simple that it's ridiculous they try to do everything but this to deal with the game issues.

The only answer that comes out of this is that all those screw ups are contemplate inside their business plan.

It's not actually tons of money for this corporation looking at what cMS and jMS and eMS all made in 2011 and 2010. GMS are actually making the least amount if I'm understanding it correct and you stated why that is:)

It's not GMS, KMS, CMS or EMS. It's Nexon AM, Nexon Korea, Nexon Europe and Nexon China.. Each brand has a lot of games they publilsh, sometimes not the same ones. There is no info here on what revenue each MapleStory server has generated. For all we know GMS could be making more money in America, while, lets say, Mabinogi is making much more in China, giving Nexon China a higher overrall revenue.

[xJunkun]

I wonder how this year will go. I saw a ss of a guy with 6m nx ._.
He got it recently, with the hacks ...

[Leaves]

Read through the full thing. Was very interesting getting a better perspective on their business.

[Onion Knight]

Wow, reading the North American part of that article makes me lol. "Responding rapidly and further building/refining out the game's internal infrastructure." Yeah........

The security initiatives they are taking sound fancy. Putting all their security efforts into the new guy? Wow, what a crappy job.

They have to say things like that to keep their shareholders. To be fair, shares in Nexon are a fairly good investment.

[ThatWasMyKil]

North America
For the fourth quarter, revenue in North America was ¥1.40 billion, a decrease of 9%
from the same quarter a year ago. On a constant currency basis, revenue declined
4%. The decline in revenue was mainly caused by disruptions in the service of our
games from aggressive hacking attacks over the Christmas holiday, our busiest
season of the year for North America. These disruptions resulted in some delayed
content updates during this important season and a related decline in usage. As in
Korea, no financial information was lost as a result of these attacks since we don’t
collect credit card information. We responded rapidly to the hacking attempts that
led to these disruptions, and also invested significant time and effort into further
building out our infrastructure to protect our players and their information. As we
have moved into the first quarter we are continuing our efforts to address certain
stability issues that have arisen in the new infrastructure. More details on our
worldwide security plan are below. Despite the challenging fourth quarter in North
America, for the full year we delivered year-over-year revenue growth of 13% (24%
on a constant currency basis).
We delivered new content and updates to most of our games with the exception of
Vindictus and Combat Arms. MapleStory had two updates during the quarter –
“Ascension” and “Legends,” which included a new wedding system, added three new
classes and several new in-game items. MapleStory’s MCCUs reached 100,665 in
December, the second highest in the game’s history in North America. In Mabinogi,
we launched the “Merchant of Venice” update, which introduced a popular new pet,
called “Ice Dragon,” and added a series of new quests based on the Shakespearean
play. We also introduced content updates for Dragon Nest, Dungeon Fighter Online,
and Atlantica. All of these games saw an increase in users compared to the prior
quarter, driven by both the updates and by seasonality.
During the quarter we signed a publishing contract for Shadow Company, a FPS
game developed by Doobic Interactive Co., Ltd., which we expect will grow the
already solid FPS user base we have in North America, currently led by Combat
Arms. We expect the game will launch in North America in the second half of 2012.
Despite the operational challenge in Q4, we are happy with our growth in North
America during the first three quarters of 2011, and our long-term outlook for this
territory remains very positive. We believe that over time, two strong trends will drive
our business in North America and in Europe. The first is the continuing penetration
of high-speed consumer broadband, which we believe has now reached a critical
mass of users. As in China, the proliferation of broadband connections is giving
millions of consumers in the West easy access to Nexon games.
The second trend is the rapidly growing awareness and beginning mass adoption of
the free-to-play business model that we pioneered more than 10 years ago, and
have been refining ever since.

[LittlePrincess]

lol they responded "rapidly" tot he Christmas hackings. It's halfway through February and they might have it licked now. At lease a whole quarter didn't go by, that's rapid right?

Differences between Japanese GAAP and US GAAP for those who may be interested.

There have been some changes to US GAAP since the creation of that artical especially in the area of consolidated financial statements and equity reporting. US GAAP has been changing to become more similar to IFERS in order to keep conformity on the internal market. The most substantial differences seem to be in earned surplus revenue (not allowed under US GAAP) and pension rules (apparently Japanese GAAP allows pension expense as pension is paid rather than pension expense as pension benefits are earned, which could allow for inflated revenues on a new company with no retirees).
(probably no one cares, but I thought it was interesting)

[maplefreak26]

Guys, there is no such thing as Nexon China.

Nexon's games are localized to different Chinese gaming companies around China.
(Shanda Games, Tencent)

[Link]

-snip-
(Zoom)
WHAT THE...

It looks like a horrid fusion between Dragonica and Ever Planet.

[Polantaris]

MS2 looks as meek and uninteresting as RO2 does after seeing a gameplay video from that game.

[FoolsLove]

MS2 looks as meek and uninteresting as RO2 does after seeing a gameplay video from that game.

Except we have no actual video of MS2 and merely what appears to be confirmation that the game exists. That wasn't a video from MS2.

[Link]

Except we have no actual video of MS2 and merely what appears to be confirmation that the game exists. That wasn't a video from MS2.

I think Polantaris means a video of Ragnarok Online 2.

[Coogi]

Why? Relative population makes it an obvious probability.

Place	Population
USA	313,232,044
South Korea	48,754,657
China	1,336,718,015

Foothold in the highest population = growth.

2008 was the first year China surpassed USA in Internet usage. 36% of China uses the internet, 78% of America uses the internet, 80% for Korea. Korea is 12th in the world with internet usage but had more revenue then USA.

[Leaves]

lol they responded "rapidly" tot he Christmas hackings. It's halfway through February and they might have it licked now. At lease a whole quarter didn't go by, that's rapid right?

Differences between Japanese GAAP and US GAAP for those who may be interested.

There have been some changes to US GAAP since the creation of that artical especially in the area of consolidated financial statements and equity reporting. US GAAP has been changing to become more similar to IFERS in order to keep conformity on the internal market. The most substantial differences seem to be in earned surplus revenue (not allowed under US GAAP) and pension rules (apparently Japanese GAAP allows pension expense as pension is paid rather than pension expense as pension benefits are earned, which could allow for inflated revenues on a new company with no retirees).
(probably no one cares, but I thought it was interesting)

The differences between the international GAAPs is a pretty big headache, tbh..