Nexon's Revenue Sees 28% Year-Over-Year Increase

Nexon has released its third-quarter results, revealing a significant surge in revenue despite some of its major franchises, such as Dungeon&Fighter and Maplestory, failing to meet expectations in Korea. The key figures include: - Net revenue: ¥97.5 billion ($666 million), representing a 28% year-over-year increase - Net income: ¥43.3 billion ($296 million), marking a 14% year-over-year increase Contrary to expectations, Nexon's long-standing title, Mabinogi, and its newer release, Hit2, exceeded forecasts this quarter. Although MapleStory and Dungeon&Fighter did not perform as well as anticipated, MapleStory still saw a 47% year-over-year revenue increase in Korea, nearing a quarterly record. FIFA Online 4 also achieved record revenues for the quarter. The Chinese market presented a different scenario, with Dungeon&Fighter and MapleStory underperforming. This led to a decline in revenues in China, both in reported terms (14%) and on a constant currency basis (27%). Foreign exchange rates played a substantial role in the company's results, with the weak Korean won and Japanese yen impacting revenue. On a constant currency basis, the revenue increase would have been 16% instead of the reported 28%. The company's cryptocurrency investments continue to decline, with a reported revaluation loss of ¥4.5 billion ($31 million) for the first nine months of the year. This is compared to a loss of ¥2.79 billion ($19.1 million) in the same period of 2021. Following its $100 million bitcoin purchase in April 2021, the company has seen the value of its investment decrease by over 70%. Looking ahead, Nexon has forecasted: - Net revenue: ¥75.5 billion to ¥83.7 billion ($516 million to $572 million), representing a 39% to 54% year-over-year increase - Net income: ¥5.47 billion to ¥10.1 billion ($37.3 million to $69.31 million), indicating a 54% to 75% year-over-year decrease Additionally, Nexon has announced a ¥50 billion ($342 million) share buyback program, set to commence and run through April 19, 2023.