NEXON Co., Ltd. Q1 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: ¥108.4 billion, higher than expected. Growth was driven by strong performances in FC ONLINE, FC MOBILE, and Blue Archive.
  • Operating Income: ¥29.1 billion, exceeded expectations due to strong revenue and lower-than-forecast marketing, HR, and cloud service costs.
  • Net Income: ¥35.9 billion, beating guidance thanks to better operating income and a ¥10.7 billion FX gain on cash deposits.

Key Game Performance vs Prior Period

  • Dungeon&Fighter (PC, China): Revenue at high end of guidance; in-game economy imbalance is being addressed but full recovery in active users and monetization will take time.
  • MapleStory (Korea): Q1 performance was slightly below forecast due to prioritizing player experience over monetization, but Q2 expected to show sequential revenue growth and return to year-ago levels.
  • THE FINALS: Underperformed expectations; retention strong in Western markets, weaker in Asia. Large updates are planned to recover traction.

Q2 2024 Guidance

  • Revenue: ¥92.3 - ¥104.7 billion (YoY: -2% to +11% as reported; -10% to +2% constant currency).

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Operator: Good day everyone and welcome to NEXON's 2024 First Quarter Earnings Conference Call. Today's call is being recorded. At this time, I'd like to turn the call over to Takanori Kawai, Team Leader of Investor Relations. Please go ahead, sir. Takanori Kawai: Hello everyone and welcome to NEXON's earnings conference call. Thank you for joining us today. With me are Junghun Lee, 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 the online games 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 owners of the parent as stated in NEXON's consolidated financial res

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