It looks like the Korean publisher known as Nexon has exceeded Q1 forecasts thanks to a “stronger-than-expected performance” due to its PC games like Dungeon Fighter (known as Dungeon & Fighter natively) and Maple Story. Additionally, the cash shop or microtransaction-driven games look to bring more revenue into Nexon’s pockets this Q2 according to the company’s forecast.
A new report has dropped pertaining to Nexon on its Q1 financial report, where the publisher announced a “record-breaking start” to the year, as its Q1 revenues “exceeded expectations.”
Website gamesindustry.biz released a piece on Nexon Q1 report stating the following information:
“Total revenues for the three months ended March 31, 2019 came in at ¥93.07 billion ($840.4 million), up 3% from the previous year. The bulk of this — 83% — came from PC, generating ¥77.6 billion ($700.7 million, up 2%), while mobile made up ¥15.4 billion ($139.1 million).”
Contrary to everything being a walk in the park for the Korean publisher, the company faced a decline in operating income, which is “attributed” to impairment loss “primarily on prepaid royalties,” while Net income grew:
“Operating income took a hit, down 4% year-on-year to ¥52.6 billion ($475 million) — this was attributed to a ¥2.9 billion ($26.2 million) impairment loss “primarily on prepaid royalties.” Net income, meanwhile, grew by 15% to ¥53.4 billion ($482.2 million, up 7%).”
Looking past the decline, Nexon reported that titles such as Dungeon Fighter and Maple Story were “key drivers” behind its Q1 success. Dungeon Fighter matched the previous high revenues recorded last year during the first quarter, while Maple Story grew its revenues by 69% year-over-year (Y-O-Y).
And it looks like FIFA Online 4 is a key success too according to Nexon as well as Crazyracing Kartrider — seeing a “major resurgence” due to its revenue being triple that of its previous year.
Lastly, the publication site cites Nexon’s financial report and which country accounts for its revenue success. China accounts for 62% of the company’s revenue, with Korea sitting at 24%. Japan and North America both make up 4% each, and Europe, and other markets, only make up for 6%.
It looks like these mobile-like games will be pulling in more traction with Nexon expecting revenues of between $470 million or ¥52.05 billion and $512 million or ¥56.7 billion, translating into Y-O-Y growth. However, time will tell.