TOKYO--()--NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online games, today announced financial results for its second quarter ended June 30, 2012.
“We are pleased with our performance for the second quarter, in which we met our expectations for both revenue and operating income, driven by growth in our existing games, which continue to perform well”
“We are pleased with our performance for the second quarter, in which we met our expectations for both revenue and operating income, driven by growth in our existing games, which continue to perform well,” said Seungwoo Choi, President and Chief Executive Officer. “In addition, we have been very active on the strategic front this quarter. We announced our acquisition of Japanese mobile game developer inBlue Inc and an investment in NCsoft Corporation, as well as a partnership with Electronic Arts Inc. to publish FIFA Online 3 in Korea, all of which further strengthen our slate of robust franchises.”
Second Quarter Fiscal 2012 Financial Highlights
- Total revenues were ¥22,876 million, an increase of 12% over the second quarter of 2011 (20% on a constant currency basis).
- Operating income was ¥10,678 million, an increase of 24% over the second quarter of 2011. Operating income margin was 47%, up from 42% in the second quarter of 2011.
- Net income for the quarter was ¥6,768 million, an increase of 32% over the second quarter of 2011.
- Adjusted net income for the quarter was ¥7,148 million, an increase of 30% over the second quarter of 2011.
- Basic earnings per share were ¥15.63. Adjusted earnings per share were ¥16.51.
|Revenue by Region|
|(Millions of yen)|
|For the Quarter||As-Reported||Constant Currency|
Ended June 301
|2011 Q2||2012 Q2||Percent Change||
|Europe and Others 2||1,688||1,545||-8%||1%|
1 The above table represents a breakdown of Nexon’s revenues based on the region in which they originate. It is not a presentation of Nexon’s revenues according to NEXON Co., Ltd. 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 Q2 2011. Rates used: 1,340 Korean won/100 Japanese yen, 12.53 Japanese yen/Chinese yuan and 82.04 Japanese yen/U.S. dollar.
Business Outlook for Third Quarter and Full Year 2012
For the third quarter of 2012, we expect revenues of ¥24,943 million, an increase of 3% over the third quarter of 2011 (5% on a constant currency basis). For the full fiscal year 2012, we expect revenues of ¥104,334 million, an increase of 19% year-over-year, or approximately 22% on a constant currency basis. We expect that growth will be driven by our strong slate of existing games and the introduction of new free-to-play titles, including Counter-Strike Online 2, Epic of the Three Kingdoms and Mabinogi 2.
|(Millions of yen, except per share data)|
For the Year Ended
December 31, 2012
|Q3 (E)||Full-Year (E)|
|Adjusted net income 1||7,007||34,294|
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 Nexon’s acquisitions, which is required under Japanese GAAP. The Company provides 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 The exchange rate assumptions used in Nexon’s business outlook are as follows: 1,429.3 Korean won/100 Japanese yen, 12.6 Japanese yen/Chinese yuan and 79.7 Japanese yen/U.S. dollar.
Conference Call and Webcast
Nexon management will host a conference call in English on August 9, 2012 at 10:30 p.m. Japan Standard Time (JST) / 9:30 a.m. Eastern Daylight Time (EDT) 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 second quarter letter to shareholders and financial statement.
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.