NEXON Co., Ltd. Q3 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Nexon Q3 2023 Earnings Summary

  • Record-Breaking Quarter: Nexon reported its sixth consecutive quarter of double-digit year-over-year revenue growth.
  • Q3 Financials:
    • Revenue: ¥120.3 billion, up 23% YoY (as-reported), 17% YoY (constant currency).
    • Operating Profit: ¥46.3 billion, up 47% YoY – record-breaking third-quarter performance.
    • Net Income: ¥35.2 billion, down 15% YoY due to an FX gain of ¥26.4 billion in Q3 2022.
  • Top Performers:
    • MapleStory: Grew 46% YoY in Q3. On track for revenue 3x larger than five years ago. Mobile version launched in China exceeded expectations.
    • FC Online/Mobile: Maintained strength post rebrand from FIFA, double-digit YoY growth expected.
    • Blue Archive: Strong YoY growth, particularly in Japan and global regions.
  • New Titles & Pipeline:
    • The Finals (Embark Studios): Open beta garnered 7.5 million downloads. Launch expected before end of 2023. Positioned to be Nexon's “fourth pillar.”
    • Arc Raiders: Innovative PvPvE title targeting commercial release in 2024.

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Takanori Kawai: Hello, everyone and welcome to Nexon's earnings conference call. 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 operations and financial condition such as revenues attributable to our key titles, growth prospects, including with respect to the online games industry, our ability to compete effectively, adapting new technologies and address new technical challenges, our use of intellectual property and other statements that are not historical pack. 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 results. Furthermore, this conference call is intended to provide investors analysts with financial and operational information about Nexon, not to solicit or recommend any sale or purchase of staff or other securities of Nexon. A recording of this con

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