“We are pleased with our third quarter performance, which exceeded our outlook, driven by strong performance in our PC online game business in China and Korea. We also are seeing positive early performance from many of our new mobile titles, and look forward to exhibiting some of our most highly anticipated titles at the upcoming G-STAR*, including Dungeon & Fighter: Spirit, Project Dynasty Warriors (tentative), DARK AVENGER 3, LawBreakers and Moonlight Blade,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “This is an exciting time for Nexon as we begin to realize the benefits of our many recent strategic investments and partnerships and extensive internal development efforts. With a strong pipeline of titles and plans to continue to expand our presence into global game market, we have tremendous opportunity ahead.”
Third Quarter 2016 Highlights:
Third quarter revenues were 44.3 billion yen, down 11% year-over-year on as-reported basis – exceeded our outlook driven by:
Korea: Exceptionally strong performance of MapleStory; strong performance of Dungeon&Fighter
China: Solid performance of Dungeon&Fighter with an early strong momentum of National Day update
?Operating income was 16.3 billion yen, exceeded our outlook due to:
Outperformance of revenues, particularly in China with higher margin
Lower-than-planned costs including marketing costs
Net income attributable to owners of the parent was 7.6 billion yen, below outlook primarily due to FX loss in U.S. dollar-denominated cash deposits and account receivables
Fourth Quarter 2016 Outlook:
Expect fourth quarter 2016 revenues in the range of 39.3 to 42.2 billion yen
Expect PC online game revenues in the range of 28.0 to 29.7 billion yen
Expect mobile game revenues in the range of 11.3 to 12.5 billion yen
Expect operating income in the range of 8.2 to 10.3 billion yen
Expect net income attributable to owners of the parent in the range of 7.7 to 9.5 billion yen.
*G-STAR: The largest game exhibition in Korea
