Click here to close now.




















Welcome!

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%
Revenues

¥30,882

¥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 )
 

Footnotes:

1   Nexon voluntarily adopted IFRS beginning in the first quarter of 2013.
2

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

3

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
(As-
Reported)

Q4 2013
(Constant
Currency)3

YoY % Change

As-
Reported

   

Constant
Currency 3

China

¥11,074

¥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%)
 

Footnotes:

1

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

2

Others consists of other Asian countries and South American countries.

3

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

Fourth Quarter 2013 Regional Highlights

China

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.

Korea

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.

Japan

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
(IFRS)

Q1 2014
(IFRS)

     
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
 

Footnote:

1  

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 Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share w...
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...