PC game is fighting hard, mobile games are waiting to make efforts.
Recently, the Korean online game manufacturer Nexon, which was listed in Japan, released its 2021 annual financial report and Q4 quarterly report, and shared the 2022 investor presetaion and the annual revenue forecast and actual difference between the business outlook and acutal performance.
Figure: Nexon's game pipeline
revenue decreased, profit increased
financial report shows that in 2021, Nexon's revenue fell 6.3% year-on-year to 274.5 billion yen (2.379 billion US dollars), and operating income fell 17.9% to 91.5 billion yen (793 million US dollars). The net profit attributable to shareholders reached 114.9 billion yen, up 104.4% year-on-year; the total profit reached 13.13 billion yen, up 51.90% year-on-year.
Figure: Comparison of key data for Nexon 2020-2021 financial report
For the decline in revenue in 2021, Nexon explained: "In the fiscal year ended December 31, 2021, revenue declined year-on-year due to challenging comparisons. In the fiscal year 2020, we achieved a record full-year revenue."
company emphasized that under the background of the new crown epidemic, Nexon's overall business has not been greatly affected, and the company continues to develop high-quality games and bring users a pleasant gaming experience. It also plans to focus on massively multiplayer online games, cross-platform games, leverage and invest in new IP and global business growth.
The revenue of DNF PC games in the Chinese market is lower than expected
The financial report details the operation of Nexon in various regions, mainly in Asia and North America, such as China, South Korea, Japan and other regions. So far, Nexon's revenue has been mainly supported by online games, reaching 194.7 billion yen, of which South Korea contributed 102.93 billion yen, accounting for 52.7%. In terms of overall revenue, China's revenue was 73.595 billion yen, making it its second largest market. Nexon also provides services in Japan, North America and other regions. The revenue segmentation of other regions is shown in the table below:
Figure 2: Nexon's main business revenue by region
Nexon explains the reasons for the decline in operation in some regions of China and South Korea, but at the same time, Nexon's revenue in Japan, North America and other parts of the world has also declined to varying degrees.
In Korea, Nexon's business in Korea is mainly divided into online games and web games. In terms of online games, the revenue was the same as the previous year. FIFA and Dungeons and Fighters broke record revenue, with "Sudden Attack" more than tripled year-on-year, and "Maple City" revenue fell compared to last year. In terms of mobile games, the revenue has declined. Nexon said in its financial report that the decline in is due to the challenge compared to fiscal 2020. 2020 is the New Year of Nexon's mobile game. New games such as "Kart of the Wind: Yeon", "Rush+" and "V4" have all achieved extraordinary results.
In China, revenue fell 11.2% year-on-year. The main reason for the decline is that " Dungeons and Warriors " has lower revenue than expected, and the number of active users and paid users is low. It is reported that "Dungeons and Warriors" has two major updates in 2021, the 13th anniversary update and the July summer update, with the purpose of improving the user stickiness of the Chinese market, but it is not as expected.
Originally, with DNF mobile games, China could contribute more revenue. Unfortunately, the DNF domestic mobile game was not launched as scheduled in August 2020. Perhaps to make up for this regret and to boost performance, Nexon recently announced that the Korean server of the "Dungeon and the Warriors" mobile game will be officially launched on March 24 this year.
Nexon has been frequent in the past year. This trend is expected to continue in 2022. The company's CEO claims that in 2022, we will continue to build a new virtual world, increase technology investment, and gradually improve the company's growth.
also announced that it has reached an agreement with the game studio to develop the game based on the popular "Warhammer" series. This shows that the company will pay more attention to IP building, protect intellectual property rights, and build a world-class entertainment empire. At present, the company has many well-known IPs such as Paopau Kart, Dungeon and Warriors, Maple Valley , etc.
Figure: Nexon product matrix
product, in 2022, Nexon plans to officially release the 2D action RPG "Dunpa Mobile" on March 24. In addition, there are many new works such as "Kart Knight: Drift", "Arc Strategy", "HIT2", "DNF DUEL", "Mabinogi", etc., which will be launched one after another.
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