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Nexon's revenue and profit falls year-on-year in Q1 due to Covid-19 pandemic

Nexon's revenue and profit falls year-on-year in Q1 due to Covid-19 pandemic

Korean games publisher Nexon saw its revenue and profits decline with implications from Covid-19 taking effect.

This information was made public through the company's Q1 financial results for the three months ended on March 31st, 2020.

Nexon Group recorded revenues of ¥82.8 billion ($773.6 million), which was driven by strong performances from major franchises in Korea to achieve a record quarter, however this wasn't enough, with revenue overall still down by 11.1 per cent year-over-year.

Net income attributable to owners of the parent company equalled ¥49.9 billion ($466 million), down 6.5 per cent year-over-year.

One of the biggest hits to Nexon has been the closure of its PC games cafes across China because of the pandemic, which resulted in a revenue decline of 42.5 per cent to ¥33 billion ($308.3 million). However, with more people indoors, mobile surged in the country by 927.2 per cent to ¥452 million ($4.2 million).

"Significant damage"

"Despite significant damage to the global economy, Nexon posted a solid first quarter with record revenue in Korea and no significant disruption to our business," said Nexon CEO and president Owen Mahoney.

"Throughout the Covid-19 crisis, Nexon has been spared the turbulence due to minimal physical contact with consumers.

"Player engagement is growing as millions of people recognise that online games and virtual worlds are the pre-eminent form of entertainment in the 21st century – our online games provide a safe, fun place to relax and communicate with friends and family."

Going forward, Nexon expects to benefit from its recently launched MMO RPG V4, as well as year-over-year growth from FIFA Online and MapleStory.

On top of this, the company plans to release KartRider Rush+ on May 12th, which has already surpassed three million pre-registrations.


Staff Writer

Matthew Forde is the staff writer for PocketGamer.biz and also a member of the Pocket Gamer Podcast. You can find him on Twitter @Forde999 talking about Smash Bros. and everything pop culture related - particularly superheroes.

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