Nexon posts strong Q1 2013, revenues up 46% Y-o-Y to $437.3M, net income up 17% to $149.7M

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Nexon logoFree-to-play online gaming giant Nexon today posted year-over-year revenue growth of 46 percent to 44.4 billion yen ($437.3 million) and 15.2 billion yen ($149.7 million) in net income for the first quarter of 2013, which ended March 31. The South Korean game developer is well known for its free-to-play massively multiplayer online role-playing game MapleStory.

“We are pleased that our first quarter results exceeded the high end of the outlook we provided last quarter, primarily due to better-than-expected performance in China and strong results in Korea, as well as a favorable currency environment,” said Seungwoo Choi, president and CEO of Nexon, in a statement. “Additionally, the acquisitions of Gloops and inBlue have positioned us as a major player in mobile, adding significant revenue to our business. Content updates to our major PC games were well-received by players around the world, particularly a tier 1 update for Dungeon&Fighter in China. We also successfully launched FIFA Online 3 in Korea during the quarter, and the game is showing strong performance in terms of both user metrics and revenues.”

The burgeoning Chinese market was the strongest for Nexon this quarter, seeing the country account for nearly half of its revenue. South Korea, which is where Nexon was founded in 1994, contributed to a quarter of the company’s revenue. Revenue from North America was a blip on the radar for Nexon, which only generated 1.4 billion yen ($13.8 million).

The Tokyo-headquartered company plans to launch Dragon Girls in Korea on messaging app KakaoTalk’s game platform and Guardian Break (Royal Tactics) in North America, both apps will be designed for its respective native audience, further expanding growth opportunities.

For Q2 2013, Nexon’s guidance for revenue from mobile is between 6.8 billion yen ($67 million) and 7.5 billion yen ($73.9 million). Nexon management expects performance from existing titles in Q2, including those released in Q1, to continue to gain momentum toward the second half of 2013.Nexon Q1 2013 earnings