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Nexon Reports Fourth Quarter and Fiscal Year 2012 Financial Results
By: Business Wire
Feb. 13, 2013 01:07 AM
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, 2012. Fourth quarter revenues grew by 39% and operating income increased 5% year-over-year, both exceeding the Company’s outlook. Full year revenues grew 24% year-over-year, and full year operating income grew 25%.
“2012 was a pivotal year of transformation for Nexon, during which we completed several transactions that have reshaped our business model as our dynamic industry continues to evolve. We invested for growth in our PC business and in the important – and rapidly growing – mobile arena, while maintaining our strategic and operational focus and delivering another year of solid growth,” said Seungwoo Choi, President and Chief Executive Officer of Nexon. “We enhanced our mobile business through the successful acquisitions of inBlue and gloops, positioning Nexon as the leading third-party mobile game developer globally. Since acquiring these companies, both have outperformed our expectations and each is set to deliver a strong 2013 lineup for the domestic and international markets. Importantly, through our recent alliance, DeNA is running strong marketing promotions for our games on the Mobage platform. We expect continued strength in our PC business over 2013 as we begin to realize the returns from the large publishing deals we signed in 2012.”
“Longer term, we expect to see continued convergence between the PC and mobile devices. As a content creator, this trend presents significant opportunities for Nexon and increases the number of ways consumers can enjoy our games,” continued Mr. Choi. “These industry trends, coupled with the groundwork we have laid, position Nexon well to deliver growth and value to our shareholders.”
Fourth Quarter Fiscal 2012 Financial Highlights
Fourth Quarter Actual Results versus Outlook
The following table shows Nexon’s results relative to the Company’s outlook. In future disclosures, Nexon intends to present its revenues in two categories: mobile revenues and PC revenues.
Fiscal Year 2012 Financial Highlights
First Quarter 2013 Business Outlook
In an effort to provide shareholders with more precise information, Nexon plans to provide a quarterly outlook rather than a full year outlook beginning in the first quarter of 2013. The Company will continue to provide additional detail and commentary regarding longer-term trends in its quarterly shareholder letter and other investor communications.
Nexon expects Q1 2013 revenue in the range of \28.5 billion to \30.3 billion for PC and \7.4 billion to \8.1 billion for mobile. Management expects the PC business will benefit from Nexon’s content update schedule, which will be more evenly weighted between Q1 and Q3 than it was in 2012. Nexon’s mobile business, which consists of gloops, inBlue and other studios, will benefit from a solid lineup of marketing initiatives, particularly on the Mobage platform through our recently announced alliance with DeNA. Further detail regarding Nexon’s Q1 2013 outlook is provided in management’s letter to shareholders, which is available on the Company’s investor relations website.
Conference Call and Webcast
Nexon management will host a conference call in English on February 13, 2013 at 10:30 p.m. Japan Standard Time (JST) / 8:30 a.m. Eastern Standard Time (EST) for analysts and investors to discuss Nexon’s financial results and outlook. The call can be accessed via live audio webcast on Nexon’s Investor Relations website at http://ir.nexon.co.jp/en/.
A transcript of the conference call will also be available on Nexon’s Investor Relations website a few days after the live webcast.
Shareholder Letter and Financial Statements
Please visit the Investor Relations section of Nexon’s website at http://ir.nexon.co.jp/en/ to view management’s fourth quarter letter to shareholders and financial statements.
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 more than 60 online games in more than 100 countries and since its founding, Nexon has generated more than 1.3 billion player registrations. The Company is headquartered in Tokyo, Japan and its shares are listed on the Tokyo Stock Exchange.
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