Nexon is banking on Dungeon & Fighter Cellular’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 Cellular is ready to launch in China on Might twenty first, revealed by Tencent. The franchise has been a high earner for Nexon, producing greater than $22 billion for the corporate to this point, 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 mentioned to be “on the excessive finish” of the corporate’s outlook.
The writer mentioned it’s persevering with work on restoring stability to its in-game economic 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 cellular 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).
Based on AppMagic estimates, Dungeon&Figher Cellular has amassed $167.9 million in gross income from the App Retailer and google Play in South Korea to this point.
“A giant precedence is the Might twenty first launch of Dungeon & Fighter Cellular in China – a recreation that has the potential to have a profoundly constructive affect on Nexon’s income and revenue profile,” mentioned Nexon president and CEO Junghun Lee in an earnings letter.
“Along with our companions at Tencent, we’re introducing a recent, new cellular expertise to one of many world’s greatest recreation franchises. The enthusiastic participant response to a current Beta Take a look at and the robust advertising and marketing marketing campaign deliberate by Tencent give us rising confidence that Dungeon & Fighter Cellular can energise our massive base of current followers in China and entice new gamers to the franchise.”
Financials
Working earnings for Nexon fell by 48% Y/Y to ¥29.1bn ($188m), which the writer put all the way down to decrease client spending, rising prices and an anticipated one-time loss. Internet earnings, in the meantime, fell by 32% Y/Y to ¥35.9bn ($231.9m)
Regardless of the declines, income, working earnings and internet earnings have been stronger than anticipated. It put this all the way down to the “robust performances” of FC On-line, FC Cellular 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 earnings hitting above expectations.
Nexon famous that in Q1, 73% of its income got here from PC and console, whereas 27% was generated from cellular.
MapleStory and The Finals
Elsewhere in its financials, Nexon famous MapleStory fell barely beneath its forecasts throughout the quarter. It mentioned it had throttled monetisation in favour of enhancing participant engagement, which it mentioned had a constructive 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 mentioned the developer and its South Korea-based stay ops crew are working collectively to “perceive and handle the important thing points”.
