NEXON Co., Ltd. Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: ¥88.3 billion, up 7% YoY as reported and 3% at constant currency. Within guidance range.
  • Operating Income: ¥43.3 billion, exceeded guidance due to lower-than-planned marketing and gateway costs.
  • Net Income: ¥46.0 billion, also exceeded guidance, aided by ¥18.1 billion FX gain due to JPY and KRW depreciation against USD.
  • Strong Regions: China, North America, Europe exceeded expectations; Japan was in line.
  • Korea: Revenue rose 26% YoY but below outlook due to weak performance from MapleStory and KartRider Rush+.
  • Investments: Unrealized gain of ¥29.6 billion (26%) on ¥115.8 billion investment in companies like Hasbro, Bandai Namco, Konami, and Sega Sammy.
  • Transparency Initiative: Nexon committed to publishing item drop probabilities after player criticism on MapleStory. Compensation given and community feedback mechanisms established.

Key Title Performance

  • MapleStory (Korea): Revenue grew YoY but below forecast; user complaints on item drop transparency led to user drop-off starting late Feb. Compensation and policy changes implemented.

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Operator: Good day, everyone, and welcome to Nexon's 2021 First Quarter Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Maiko Ara, Head of Investor Relations and Corporate PR. Please go ahead, ma'am. Maiko Ara: Hello, everyone, and welcome. Thank you for joining us today. With me are Owen Mahoney, President and CEO of Nexon; and Shiro Uemura, CFO. Today's call will contain forward-looking statements, including statements about our results of operation and financial conditions, such as revenues attributable to our key titles; growth prospects, including with respect to online game industry; our ability to compete effectively; adapt to new technologies and address new technical challenges; our use of intellectual property and other statements that are not historical facts. These statements represent our predictions, projections and expectations about future events, which we believe are reasonable or based on reasonable assumptions. However, numerous risks and uncertainties could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Information on some of these risks and uncertainties can be found in our earnings related IR documents. We assume no obligation to update or alter any forward-looking statements. Please note net income refers to net income attributable to owner of the parent, as stated in Nexon's consolidated financial results. Furthermore, this confer

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