Click here to close now.




















Welcome!

Microsoft Cloud Authors: Greg O'Connor, Wesley Coelho, Elizabeth White, Adine Deford, the Editor

News Feed Item

Nexon Reports Fourth Quarter and Fiscal Year 2012 Financial 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, 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

  • Total consolidated revenues were ¥30,937 million, an increase of 39% over the fourth quarter of 2011 (or 30% on a constant currency basis).
  • Operating income was ¥9,778 million, a 5% increase from the fourth quarter of 2011. Operating income margin was 31.6%, as a result of the addition of significant new mobile revenues at lower margins, increased marketing expenses, amortization expenses from our gloops acquisition and changes in the geographic mix shift as the increase in Japan mobile revenues caused our higher-margin China business to decrease as a percentage of total revenue.
  • Net loss for the quarter was ¥94 million, below the Company’s outlook, due to a write-down related to Nexon’s investment in JC Entertainment. Additionally, tax expenses were higher than expected due to a new interpretation of Korean tax regulation. Write-downs were also taken on smaller impairments of IP and goodwill of minority investment subsidiaries.
  • Adjusted net income 1 for the quarter was ¥1,033 million.
  • Basic earnings per share were a loss of ¥0.22. Adjusted earnings per share were ¥2.38.

Footnote:

1   Adjusted net income is a non-GAAP measure that excludes the non-cash amortization of goodwill related to our acquisitions (and negative goodwill in the case of acquisitions occurring before April 1, 2010), 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.
                       

Revenue by Region1,4

(Millions of yen)
 
Q4 2011

Q4 2012

(As-

Reported)

Q4 2012

(Constant

Currency3)

YoY % Change

As-

Reported

     

Constant
Currency3

 
China ¥ 8,281 ¥ 11,074 ¥ 9,862 34 % 19 %
Korea 7,224 7,057 6,340 -2 % -12 %
Japan 3,687 10,037 10,037 172 % 172 %
North America 1,407 1,117 1,036 -21 % -26 %

Europe and Others2

1,590 1,651 1,534 4 % -4 %
Nexon Total 22,190 30,937 28,811 39 % 30 %
 

FX Rate5

100 KRW/JPY 7.23 7.10 7.23
CNY/JPY 12.34 12.64 12.34
USD/JPY 79.84 79.82 79.84
 

Footnotes:

1   The above table presents 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 consists of 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 Q4 2011.
4 Revenues are Nexon Group’s consolidated revenues, which include gloops’ revenue.
5 Constant currency is calculated differently under Japanese GAAP compared to U.S. GAAP. Instead of fixing the exchange rate at the end of each quarter, we apply one of the approved methods under Japanese GAAP and take the cumulative average from the beginning of the year. For example, the Q2 rate is the average from the beginning of year through Q2. Also, when converting currency for China revenue, Tencent pays Nexon Korea in USD, which is converted to KRW in Nexon Korea’s books and then converted to JPY for reporting purposes.
 

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.

                       
Q4 2012 Actual Results versus Outlook
(Millions of yen, except per share data)
 

 

Q4 2012

Nexon Outlook

(excluding gloops)

Q4 2012

Nexon

(excluding gloops)

Q4 2012

gloops Outlook

Q4 2012

gloops

                       

 

Revenues ¥21,263 ~ ¥24,000

¥24,492

¥6,200 ~ ¥6,700 ¥6,445
Operating income 5,580 ~ 8,102 8,613 1,500 ~ 1,800 1,910
Net income (loss) 3,188 ~ 5,099 (400 ) 900 ~ 1,080 1,013
Adjusted net income 3,597 ~ 5,507 74 900 ~ 1,080 1,013
 
Basic EPS (LPS) 7.34 ~ 11.74 (0.92 ) 2.07 ~ 2.49 2.33
Adjusted EPS 8.28 ~ 12.68 0.17 2.07 ~ 2.49 2.33
 

Fiscal Year 2012 Financial Highlights

  • Total consolidated revenues were ¥108,448 million, an increase of 24% over the prior fiscal year.
  • Operating income was ¥47,874 million, an increase of 25% over the prior fiscal year. Operating income margin was 44.1%, slightly higher than the 43.7% in 2011.
  • Net income for the year declined 1% over the prior fiscal year to ¥25,401 million.
  • Adjusted net income for the year was ¥27,711 million, up 2% over the prior fiscal year.
  • Basic earnings per share were ¥58.71. Adjusted earnings per share were ¥64.05.

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.

                 
Business Outlook
(Millions of yen, except per share data)
 

 

Q1 2011 Q1 2012 Q1 2013
           
Revenues ¥ 20,809 ¥ 30,377 ¥35,965 ~ ¥38,519
PC 20,666 30,151 28,553 ~ 30,345
Mobile 143 225 7,411 ~ 8,174
Operating income 9,340 17,384 12,330 ~ 14,378
Net income 7,586 12,377 7,840 ~ 9,318
Adjusted net income 7,968 12,738 8,923 10,401
 

Earnings per share2:

Basic EPS 21.50 28.82 18.00 ~ 21.39
Adjusted EPS 22.58 29.66 20.49 ~ 23.88
 

FX Rate Assumptions3

100KRW/JPY 7.37 7.03 7.94 7.94
CNY/JPY 12.52 12.55 13.34 13.34
USD/JPY 82.34 79.28 85.08 85.08
 

Footnote:

1   Adjusted to reflect the 1:100 stock splits that occurred on July 21, 2011.
2 Based on the assumptions above, every one Japanese yen move against the U.S. dollar would have an impact of 0.32 billion yen on revenue and 0.15 billion yen on operating income for the three months ending March 31, 2013.
 

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.

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
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing these ideas and some early experiments performed in the Kurento open source software community in areas ...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small, but are focused on specific tasks. The ability for developers to deploy multiple containers – thous...
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! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Communication) is an open source project supported by Google, Mozilla and Opera that aims to enable bro...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
SYS-CON Events announced today that IceWarp 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. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
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, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be.
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
SYS-CON Events announced today that HPM Networks 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. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...