Nexon announced financial results for its fourth quarter and fiscal year 2016. Nexon’s full-year profits declined by more than 60%, largely down to impairment charges related to its acquisition of the Japanese mobile developer, Gloops Inc. For the year ended December 31 2016, Nexon’s revenue fell 4% year-on-year to ¥183.1 billion. Net income for that period was ¥20.1 billion, a far more significant decline of 63% over the previous year’s results.
“Our unique ability to develop and operate engaging, distinctive games that cultivate thriving interactive communities and grow steadily over the long term continued to drive value and results in 2016 fourth quarter,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “We continue to see strong performance across our portfolio of games, including storied hits like Dungeon&Fighter in China, as well as titles like FIFA Online 3, FIFA Online 3 M in Korea and HIT in Taiwan and Thailand. Together, their performance helped drive fourth-quarter revenue that was above expectations. Heading into 2017, we have an exceptionally strong pipeline, including titles such as LawBreakers, Durango, Dynasty Warriors Unleashed and Dark Avenger 3, that we believe will continue to validate our proven and differentiated approach.”
The company’s financial performance was negatively affected by an impairment charge related to Gloops, the Japanese company it acquired for almost $470 million in 2012. That deal was in part due to the Korean company’s strategy to gain market share in the very lucrative Japanese mobile market. However, Japan is still a very distant second to Korea as Nexon’s biggest market.
This was reflected in the companies regional divisions, with Nexon Korea contributing by far the most revenue overall. Nexon Japan, the second biggest contributor, recorded a full-year loss of ¥3.7 billion. That’s almost double the losses of the previous year, with revenue also declining by 25%. Nexon’s North American division performed similarly, with revenue down 21% to ¥8.8 billion and an overall loss of ¥4.8 billion. Nexon China bucked the trend, with profits climbing 40% to reach ¥3.1 billion.
In the coming year, Nexon has a promising crop of new games, including Need for Speed Edge, Titanfall Online, and LawBreakers, the first game from Cliff Bleszinski’s Boss Key Productions.
Source: Nexon, GI.biz