Nexon sees huge increase in revenue, splits stock

February 13, 2018 Justin Olivetti 10 comments

Things are looking pretty rosy for Nexon as the studio posted its Q4 2017 financials. Revenue and profit both shot up compared to the year previous, and Dungeon & Fighter has proved to be a smash hit in China.

Nexon reported that it made around $2.2 billion in revenue for 2017, a number that is up 28.3% from 2016. The company attributed the success to increased sales in China and stable economies among the countries in which it does business.

The studio made 72% of its revenue from PC and 28% from mobile. Breaking income down by countries, China was the largest at 43%, followed by Korea (40%), Japan (6%), and North America (6%). Nexon also split its stock at the time of this report, taking it from 440 million shares to 1.4 billion shares.

Earlier this month, the studio was hit by a round of layoffs that may have impacted as many as 20% of the company’s western office.

Source: Gamasutra, Investor Relations

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tagged with china, dungeon and fighter, dungeon fighter online, earnings, earnings report, financial report, financials, japan, layoff, layoffs, nexon

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Sally Bowls

Korea’s three largest game publishers saw record sales last year – a combined 6.5 trillion won ($6 billion) …
The three game giants’ combined market cap is currently 36.9 trillion won, higher than the combined market cap of Korea’s three major mobile carriers – SK Telecom, KT and LG U+ – at 32.4 trillion won.

Robert Mann

AKA, the ‘East’ is far more forgiving toward cash shop abuse just yet… and we have a problem with it in the ‘West’ with people being forgiving toward it. XD

Well, to be fair a lot of that is effort in bringing over games and all, but a good chunk of that really is how many people are willing to pay out without getting bitter and leaving a game.

Xijit

So if that 6% is post-layoffs … how bad was it before the layoffs?

Greaterdivinity

That’s revenue I believe, so operating costs aren’t a factor.

Though it definitely would explain the layoffs. I don’t think they’ve ever had much of a presence in NA, revenue numbers have consistently been very low in this region. It seems they’ve sorta attempted to beef up their presence here a a few times over the years but it’s always been a very cautious expansion that never really pans out.

I’d be real curious to see what a serious attempt at breaking into the NA market in a meaningful way looks like, though. They don’t necessarily have a bad library of current and upcoming games so it’s not like they don’t have anything to work with.

They were a force back when F2P was the new Hotness: Mabinogi and Maple Story were huge hits back in the day … last real big push they made was with Vindictus, but that game went nowhere fast and Nexon has not been back in the ring with a high end Korean title since then (and no, Riders Of Icarus does not really count).

I think where issues really started was when Nexon bought stock in NCsoft … my heart wants to say that was when they stopped pushing for the US market.

They probably had a road map laid out to take over NCsoft & then use them as their main front in the US.