Nexon is banking on Dungeon & Fighter Cell’s imminent China launch to spice up gross sales after it reported a 13% year-over-year decline in income to ¥108.4 billion ($700.3 million) in Q1 2024.
Dungeon & Fighter Cell is about to launch in China on Could twenty first, printed by Tencent. The franchise has been a high earner for Nexon, producing greater than $22 billion for the corporate so far, with over 850 million registered customers worldwide throughout its video games.
Nexon’s income in China fell 32% Y/Y in Q1 to ¥29.2 billion ($188.7m) due largely to a lower in gross sales for Dungeon & Fighter, although income was nonetheless stated to be “on the excessive finish” of the corporate’s outlook.
The writer stated it’s persevering with work on restoring steadiness to its in-game financial system, after points arose in December, to get better income momentum and the variety of lively gamers for the sport.
Regardless of anticipating “comfortable efficiency” from Dungeon & Fighter within the near-term in China, Nexon has excessive hopes for the cell model. Following the launch, it expects China gross sales to extend between 48% to 90% Y/Y in Q2 to as a lot as ¥34.6 billion ($223.4m).
In accordance with AppMagic estimates, Dungeon&Figher Cell has gathered $167.9 million in gross income from the App Retailer and google Play in South Korea so far.
“An enormous precedence is the Could twenty first launch of Dungeon & Fighter Cell in China – a sport that has the potential to have a profoundly optimistic affect on Nexon’s income and revenue profile,” stated Nexon president and CEO Junghun Lee in an earnings letter.
“Along with our companions at Tencent, we’re introducing a recent, new cell expertise to one of many world’s greatest sport franchises. The enthusiastic participant response to a latest Beta Check and the sturdy advertising and marketing marketing campaign deliberate by Tencent give us rising confidence that Dungeon & Fighter Cell can energise our giant base of present followers in China and appeal to new gamers to the franchise.”
Financials
Working revenue for Nexon fell by 48% Y/Y to ¥29.1bn ($188m), which the writer put right down to decrease shopper spending, rising prices and an anticipated one-time loss. Internet revenue, in the meantime, fell by 32% Y/Y to ¥35.9bn ($231.9m)
Regardless of the declines, income, working revenue and web revenue have been stronger than anticipated. It put this right down to the “sturdy performances” of FC On-line, FC Cell and Blue Archive.
The writer additionally cited cuts to its HR and advertising and marketing prices, in addition to decrease than anticipated cloud service bills, as causes for working revenue hitting above expectations.
Nexon famous that in Q1, 73% of its income got here from PC and console, whereas 27% was generated from cell.
MapleStory and The Finals
Elsewhere in its financials, Nexon famous MapleStory fell barely under its forecasts throughout the quarter. It stated it had throttled monetisation in favour of bettering participant engagement, which it stated had a optimistic affect, regardless of the drop in gross sales.
Income and retention for Embark Studios’ The Finals was decrease than anticipated after the launch of season 2. Nexon stated the developer and its South Korea-based stay ops staff are working collectively to “perceive and handle the important thing points”.
