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Nexon sees FY14 Q3 mobile revenues up 41% to $88 million

Japan still down, but Korea on the up
Nexon sees FY14 Q3 mobile revenues up 41% to $88 million
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F2P game publisher Nexon (TYO:3659) has announced its FY14 Q3 financials, for the three months ending 30 September 2014.

Revenues were $415 million (¥45.6 billion), up 14 percent year-on-year.

Net income was $124 million (¥13.6 billion), up 69% year-over-year, mainly because of currency exchange fluctuations.

Both revenue and income exceeded Nexon's forecast, mainly because of better-than-expected results from Korea.

Korea was Nexon's largest market (44 percent), followed by China (34 percent) and Japan (16 percent).

Mobile on the rise

In terms of mobile games, revenues were up 41 percent year-on-year to $88 million (¥9.7 billion), or 21 percent of Nexon's total sales.

Sales from native games were up 50 percent quarter-on-quarter and now account for around half of Nexon's mobile revenues.

In Korea, Legion of Heroes for Kakao has received 4 million downloads, while Three Sword Heroes is a solid top 30 top grossing game on Google Play. The World Cup has boosted FIFA Online 3 M too. It's a top 10 top grossing game in Korea.

In Japan, where Nexon owns local developer Gloops, revenue decline 7 percent quarter-on-quarter or 14 percent year-on-year as the browser game market continues to die.

Nexon's Japanese sales are facing a steady decline
Nexon's Japanese sales are facing a steady decline

For this reason, Nexon highlighted the fact that it was considering whether to write-off the remaining $282 million (¥31 billion) of goodwill from its $332 million (¥36.5 billion) acquisition of Gloops.

Yet, Gloops has experienced some success, however, with new release Skylock, which has received 1 million downloads.

Nexon ended the quarter with cash and equivalents worth $1 billion.

[source: Nexon (PDF)]