Welcome!

.NET Authors: Lori MacVittie, Yeshim Deniz, Ivan Antsipau, Liz McMillan, Michael Bushong

News Feed Item

Nexon Reports Third Quarter 2012 Financial Results

NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online games, today announced financial results for its third quarter ended September 30, 2012.

“We are pleased to have exceeded our operating income forecast for the quarter, despite revenue being slightly below our expectations, and to have announced several key strategic developments,” said Seungwoo Choi, President and Chief Executive Officer. “Importantly, during the quarter, we continued to take aggressive steps to capitalize on the rapid evolution of the games market on the PC and mobile platforms. We launched a closed beta for Counter-Strike Online 2 and an open beta for Epic of the Three Kingdoms. Today, we announced that we will be launching Dota 2 (“Defense of the Ancients 2”) in Korea and Japan with our partner Valve Corporation. Additionally, the development of FIFA Online 3 has been proceeding rapidly and we are on track to launch the game at the end of the fourth quarter. We believe our current pipeline is the most promising slate of games we’ve had yet, ensuring we are well-positioned for growth in 2013 and beyond.”

Continued Choi, “We also recently announced a transformational transaction with the acquisition of mobile game developer, gloops, Inc. ('gloops'). We believe this acquisition makes Nexon the largest mobile game developer in the world by revenue, based on publicly-available information, and it creates tremendous opportunities for us. We are particularly focused on combining Nexon’s popular IP and global footprint with gloops’ world-class mobile development capabilities to create strong mobile franchises and expand gloops’ business around the world.”

Third Quarter Fiscal 2012 Financial Highlights

  • Total revenues were ¥24,256 million, flat versus the third quarter of 2011 (an increase of 3% on a constant currency basis) and slightly below management’s previous outlook.
  • Operating income was ¥10,032 million, a decrease of 8% over the third quarter of 2011 and 8.5% above management’s previous outlook. Operating income margin was 41.4%, which was higher than expected. This was driven by revenue mix, which was higher in China and lower in some other regions, as well as our decision to push back certain launch marketing expenses into the fourth quarter of 2012.
  • Net income for the quarter was ¥6,348 million, a decrease of 12% over the third quarter of 2011.
  • Adjusted net income for the quarter was ¥6,791 million, a decrease of 10% over the third quarter of 2011.
  • Basic earnings per share were ¥14.63. Adjusted earnings per share were ¥15.65.
  • Revenue by region is shown below:
 

Revenue by Region

(Millions of yen)

   

For the three months ended
September 30

% Change
2011   2012 As-Reported   Constant Currency3
 
China

¥ 8,684

¥ 11,404

31 % 36 %
Korea

8,521

 

6,578

 

-23 % -20 %
Japan 3,459 3,231 -7 % -7 %
North America 1,700 1,340 -21 % -22 %
Europe and Others 2 1,791   1,701   -5 % 1 %
Nexon Total 24,156 24,256 0 % 3 %

Footnotes:
1 The above table represents a breakdown of our revenue based on the region in which revenues originate. It is not a presentation of our revenues according to Nexon entities.
2 Others: United Kingdom, other Asian countries, and South American countries.
3 Constant currency percent change is the growth rate had the currency rate not changed from Q3 2011. Rates used: 1,355 Korean won/100 Japanese yen, 12.39 Japanese yen/Chinese yuan and 80.66 Japanese yen/U.S. dollar.

Business Outlook for Fourth Quarter and Full Year 2012

Nexon revised its outlook for the remainder of 2012, reflecting the consolidation of gloops and a revision to management’s forecast for Nexon’s core business.

For the full year 2012, the Company expects revenues of ¥104.9 billion to ¥108.2 billion, of which ¥6.2 billion to ¥6.7 billion is from gloops. Management anticipates operating income of ¥44.4 billion to ¥47.2 billion, of which ¥0.7 billion to ¥1.0 billion is from gloops.

       

Nexon Group Business Outlook2, 3

(Millions of yen, except per share data)

 

 

For the three months

ending December 31, 2012

For the twelve months

ending December 31, 2012

       
 
Revenues ¥27,463 ~ ¥30,700 ¥104,973 ~ ¥108,210
Operating income 6,335 ~ 9,157 44,431 ~ 47,253
Net income 3,381 ~ 5,471 28,876 ~ 30,966
Adjusted net income 1 4,441 ~ 6,531 31,119 ~ 33,210
 
Basic EPS 7.78 ~ 12.59 66.75 ~ 71.59
Adjusted EPS 10.22 ~ 15.03 71.94 ~ 76.77
 

For your reference, gloops’ business outlook is as follows:

     

gloops Business Outlook

(Millions of yen, except per share data)

 

 

For the three months

ending December 31, 2012

For the twelve months

ending December 31, 2012

       
 
Revenues ¥6,200 ~ ¥6,700 ¥6,200 ~ ¥6,700
Operating income 1,500 ~ 1,800 1,500 ~ 1,800
Net income 900 ~ 1,080 900 ~ 1,080
Adjusted net income 1 900 ~ 1,080 900 ~ 1,080
 
Basic EPS 2.07 ~ 2.49 2.07 ~ 2.49
Adjusted EPS 2.07 ~ 2.49 2.07 ~ 2.49

Footnote:
1 Adjusted net income is a non-GAAP measure that excludes the non-cash amortization of goodwill (and negative goodwill in the case of acquisitions occurring before April 1, 2010) related to our acquisitions, which is required under Japanese GAAP. We provide this information to investors for the purpose of comparing our net income with that of companies that do not amortize goodwill or negative goodwill associated with acquisitions in their financial results, including those reporting in accordance with U.S. GAAP.
2 Nexon group business outlook includes the impact of amortization resulting from consolidation of gloops.
3 The exchange rate assumptions used in Nexon’s business outlook are as follows: 1,431.98 Korean won/100 Japanese yen, 12.55 Japanese yen/Chinese yuan and 79.31 Japanese yen/U.S. dollar.

Conference Call and Webcast

Nexon management will host a conference call in English on November 8, 2012 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 third quarter letter to shareholders and related 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.

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.

@ThingsExpo Stories
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have spoken with, or attended presentations from, utilities in the United States, South America, Asia and Europe. This session will provide a look at the CREPE drivers for SmartGrids and the solution spaces used by SmartGrids today and planned for the near future. All organizations can learn from SmartGrid’s use of Predictive Maintenance, Demand Prediction, Cloud, Big Data and Customer-facing Dashboards...
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArchon, he served as a VP and Principal Analyst with Constellation Group. He is a member of the Boulder (Colo.) Brain Trust, an organization with a mission “to benefit the Business Intelligence and data management industry by providing pro bono exchange of information between vendors and independent analysts on new trends and technologies and to provide vendors with constructive feedback on their of...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.