|By Business Wire||
|February 13, 2013 01:07 AM EST||
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.
|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)|
|YoY % Change|
|China||¥ 8,281||¥ 11,074||¥ 9,862||34||%||19||%|
Europe and Others2
|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)|
|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|
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.
|(Millions of yen, except per share data)|
|Q1 2011||Q1 2012||Q1 2013|
|Revenues||¥ 20,809||¥ 30,377||¥35,965||~||¥38,519|
|Adjusted net income||7,968||12,738||8,923||10,401|
Earnings per share2:
FX Rate Assumptions3
|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.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 27, 2016 02:30 PM EDT Reads: 1,142
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jun. 27, 2016 01:01 PM EDT Reads: 173
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 27, 2016 12:00 PM EDT Reads: 776
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jun. 27, 2016 11:55 AM EDT Reads: 229
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 27, 2016 10:00 AM EDT Reads: 1,011
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 27, 2016 09:30 AM EDT Reads: 853
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 27, 2016 07:30 AM EDT Reads: 1,021
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 26, 2016 05:00 PM EDT Reads: 1,312
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 26, 2016 05:00 PM EDT Reads: 1,223
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Jun. 26, 2016 04:00 PM EDT Reads: 1,341
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th 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 and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 26, 2016 04:00 PM EDT Reads: 1,280
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 26, 2016 02:00 PM EDT Reads: 1,172
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...
Jun. 26, 2016 12:00 PM EDT Reads: 1,304
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 26, 2016 12:00 PM EDT Reads: 1,134
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Jun. 26, 2016 12:00 PM EDT Reads: 1,360
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 26, 2016 12:00 PM EDT Reads: 1,105
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 26, 2016 09:45 AM EDT Reads: 671
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 25, 2016 03:00 PM EDT Reads: 1,631
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor 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. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Jun. 24, 2016 01:00 PM EDT Reads: 1,374
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Jun. 24, 2016 12:00 PM EDT Reads: 1,673