Nexon beats quarterly revenue and profit forecasts

Nexon beat its own revenue and profit forecasts for its third quarter of 2014, thanks largely in part to the Korean-based firm’s native market.

Games Industry reports Nexon saw a 14 per cent year-on-year increase in revenue to $395m, along with net income of $94m – a 69 per cent increase compared to Q3 2013.

"Our third quarter results exceeded the high end of our outlook largely due to strength in Korea, particularly in mobile, as well as our continuing focus on improving game quality, which translated into solid performance in both PC and mobile titles," Nexon CEO Owen Mahoney stated.

"Our upcoming game pipeline is robust, and we remain focused on continuing to deliver fun and unique game experiences to our players around the world, which we believe will drive long-term growth for Nexon."

That said, the company has readied investors for a potential impairment loss in Q4 involving Nexon’s slumping acquisition Gloops Inc. The firm purchased the Japanese mobile developer in hopes of gaining ground in the region.

Instead, the country accounts for just 16 per cent of Nexon’s total revenue – a year-on-year decline versus the same period last year.

If the impairment loss takes place, Nexon will cancel a planned year-end dividend of 5 per share.

About MCV Staff

Check Also

EA suggests that it may drop FIFA brand

It's a rock and a hard place for EA, but it's the right thing to be at least considering a change