News Feed Item

Nexon Announces Fourth Quarter and Full Year 2013 Results

NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online games, today announced financial results for its fourth quarter and fiscal year ended December 31, 2013.

Fourth quarter revenues grew 12% year-over-year and full year revenues grew 43% year-over-year. Fourth quarter IFRS operating income decreased 96% year-over-year due to impairment loss primarily from consolidated subsidiary NDOORS Corporation.

“We are proud of Nexon’s many accomplishments in 2013, including the strong performance of our business in China, which continued to generate solid cash flow as Dungeon&Fighter remained a top-performing game in the region, and of our Korean business, which demonstrated significant growth driven by the strength of new and existing titles,” said Seungwoo Choi, President and Chief Executive Officer of Nexon. “While we are still underperforming in Japan and the West, we made excellent progress against our long-term strategic initiatives by entering into commercial partnerships with and making investments in several studios headed by world-class developers. We also announced changes to our management team, and are looking forward to our new team’s enhanced efforts to grow our business in those markets.”


Fourth Quarter Fiscal 2013 Financial Highlights (IFRS) 1

(Millions of yen, except for per share data)

Q4 2012 Q4 2013 YoY%


¥34,467 12 %
PC 23,813 27,750 17 %
Mobile 7,070 6,717 (5 %)
Operating income 2 8,793 327 (96 %)
Net income(loss)3 552 (4,437 )
Earnings(loss) per share: 1.27 (10.10 )


1   Nexon voluntarily adopted IFRS beginning in the first quarter of 2013.

Operating income includes recorded impairment loss of ¥9.5 billion, primarily from consolidated subsidiary NDOORS Corporation.


Net income (loss) refers to net income (loss) attributable to owners of the parent, as stated in Nexon’s consolidated financial results. Nexon also recognized a ¥2.5 billion impairment loss from equity method affiliates related to 6waves Inc., which the Company recorded in finance costs under IFRS.


Revenue by Region1 (IFRS)


(Unit: ¥ millions)

  Revenue by Region

Q4 2012

Q4 2013

Q4 2013

YoY % Change



Currency 3



¥12,065 ¥9,047 9% (18%)
Korea 7,057 11,654 8,728 65% 24%
Japan 10,037 8,274 8,274 (18%) (18%)
North America 1,117 1,201 949 8% (15%)
Europe and Others 2 1,596 1,273 959 (20% ) (40%)

  Nexon Total

30,882 34,467 27,956 12% (9%)



  Based on the region in which revenues originate; not a representation of our revenues according to Nexon entities.


Others consists of other Asian countries and South American countries.


On a constant currency basis (using Q4 2012 currency exchange rates).

Fourth Quarter 2013 Regional Highlights


Fourth quarter revenues were up 9% year-over-year, or down 18% on a constant currency basis, in line with management’s internal expectations. Dungeon&Fighter revenue decreased single digit year-over-year on a constant currency basis in line with management’s internal expectations.


Fourth quarter revenues were up 65% year-over-year, or up 24% on a constant currency basis, driven by continued strong performance of FIFA Online 3 and double-digit growth of Dungeon&Fighter, Sudden Attack, and Mabinogi. Five mobile titles were launched during the quarter, with two exceeding KRW 1 billion in 30-day revenues.


Fourth quarter revenues were down 18% year-over-year due to lower mobile and PC revenues. The Company launched mobile titles Skylock and Wake Up! Girls during the quarter.

North America, Europe and Others

Fourth quarter revenues in North America were up 8% year-over-year, or down 15% on a constant currency basis. Fourth quarter revenues for Europe and other regions were down 20% year-over-year, or down 40% on a constant currency basis.

Fiscal Year 2013 Financial Highlights

  • Total revenues were ¥155.3 billion, an increase of 43% over the prior fiscal year.
  • Operating income was ¥50.7 billion, an increase of 7% over the prior fiscal year. Operating income margin was 33%, compared to 44% in 2012.
  • Net income (attributable to owners of the parent) was ¥30.1 billion, an increase of 7% over the prior fiscal year.
  • Earnings per share were ¥69.25, up from ¥65.27 in 2012.

Management Change

In a separate statement today, Nexon also announced that its Board of Directors has appointed Owen Mahoney as the Company’s President and Chief Executive Officer-elect, effective following the Annual General Meeting of Shareholders to be held on March 25, 2014. Mr. Mahoney, who currently serves as Nexon's Chief Financial Officer and Chief Administrative Officer, will succeed Seungwoo Choi, who has decided to retire and will assume the advisory role of Honorary Chairman. Both Mr. Choi and Mr. Mahoney will continue to serve in their current roles until the general shareholders’ meeting.

In conjunction with the CEO transition, Shiro Uemura, presently general manager of the Accounting and Finance Department, will replace Mahoney as Chief Financial Officer. Koji Abe, General Counsel, will assume the additional role of Chief Administrative Officer.

First Quarter 2014 Business Outlook

The following table presents Nexon’s outlook for the first quarter of fiscal 2014.


(Millions of yen)

Q1 2013

Q1 2014

Revenues ¥44,364 ¥42,030 ~ ¥45,661
PC 36,877 35,672 ~ 38,658
Mobile 7,487 6,358 ~ 7,003
Operating income 20,716 15,619 ~ 18,704
Net income1 15,150 12,128 ~ 14,480
Earnings per share 34.77 27.62 ~ 32.97



Net income (loss) refers to net income (loss) attributable to owners of the parent, as stated in Nexon’s consolidated financial results.


The Company also expects a weaker Japanese yen to continue to contribute to year-over-year growth based on its ¥100.46 per US$1 and ¥9.48 per KRW100 currency exchange assumptions.

Conference Call and Webcast

Nexon management will host an earnings presentation for analysts, investors and the media, which will be conducted in Japanese with simultaneous English interpretation today, at 4:30 pm Japan Standard Time (JST) / 2:30 am Eastern Standard Time (EST) to discuss Nexon’s financial results and outlook. A video replay of the presentation will be made available via Nexon’s Investor Relations website a few days after the presentation.

There will also be a live conference call conducted in English at 10:00 pm JST / 8:00 am EST. A replay will be made available 60 minutes following the conclusion of the conference call, and a transcript will be available a few days after. Dial-in information is as follows:

Conference call dial-in: 1-412-902-6602 (US)
Conference call replay: 1-412-317-0088 (US)
Replay passcode: 10038374#

For additional information regarding Nexon’s fourth quarter and full year 2013 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.

About NEXON Co., Ltd. http://company.nexon.co.jp/

NEXON Co., Ltd. (“Nexon”) (3659.TO) is a worldwide leader in free-to-play online games. Founded in Korea in 1994, Nexon developed one of the world's first graphics-based massively multiplayer online games. Nexon also pioneered the concept of microtransactions and the free-to-play business model, setting a new standard in which play is free, and users have the option to purchase in-game items to enhance their experience. Nexon currently services nearly 60 online games in more than 100 countries and since its founding, Nexon has generated more than 1.4 billion player registrations. The Company is headquartered in Tokyo, Japan and its shares are listed on the Tokyo Stock Exchange.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Enzu will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their online busine...
In his session at 19th Cloud Expo, Nick Son, Vice President of Cyber Risk & Public Sector at Coalfire, will discuss the latest information on the FedRAMP Program. Topics will cover: FedRAMP Readiness Assessment Report (RAR). This new process is designed to streamline and accelerate the FedRAMP process from the traditional timeline by initially focusing on technical capability instead of documentation preparedness. FedRAMP for High-impact level systems. Early in 2016 FedRAMP officially publishe...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, will discuss the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They will also review two "free infrastruct...
Qosmos, the market leader for IP traffic classification and network intelligence technology, has announced that it will launch the Launch L7 Viewer at CloudExpo | @ThingsExpo Silicon Valley, being held November 1 – 3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The L7 Viewer is a traffic analysis tool that provides complete visibility of all network traffic that crosses a virtualized infrastructure, up to Layer 7. It facilitates and accelerates common IT tasks such as VM migra...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, you'll learn about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how Docke...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...