NEXON Co., Ltd. Q4 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights
  • Full-Year 2023 Revenue: JPY 423.4 billion (↑20% YoY) – Record high for Nexon.
  • Full-Year Operating Income: JPY 134.7 billion (↑30% YoY).
  • Q4 2023 Revenue: JPY 84.6 billion – Fell below expectations due to underperformance in key titles.
  • Q4 2023 Operating Income: JPY 4.5 billion – Below outlook due to one-time expenses and cost challenges.
  • Q4 2023 Net Income: Below expectations, impacted by impairment on AGBO investment and FX losses.
  • Q1 2024 Revenue Guidance: JPY 97.1–107.1 billion (▼22–14% YoY reported; ▼27–19% constant currency).
  • Q1 2024 Operating Income Guidance: JPY 15.2–23.4 billion (▼73–58% YoY).
  • Q1 2024 Net Income: Expected to decrease YoY.
Key Business Updates
  • THE FINALS: Launched December 2023, exceeded internal expectations with 10 million players and Top 5 ranking on Steam despite modest marketing spend; Season 2 to launch in March.
  • Dungeon&Fighter (China): Faced in-game economy imbalance due to gold oversupply; aggressive content updates planned to resolve issue in the next few quarters.

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Operator: Good day, everyone and welcome to Nexon’s Fourth Quarter and Full Year 2023 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 Q4 earnings conference call. Thank you for joining us today. With me are Owen Mahoney, President and CEO of Nexon; Shiro Uemura, CFO; and Junghun Lee, who is scheduled to become Nexon’s CEO in March of this year. 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 n

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