Investor Presentaiton
COGS and SG&A
(Unit: \ millions)
Total Cost of Revenue ¹
2
Royalty
3
HR cost (COGS) ³
Other (COGS) 4
FY2019
FY2020
Q1
Q2
Q3
Q4
Q1
1
¥15,899
¥15,055
¥14,180
¥14,451
¥15,343
4,510
4,119
4,344
3,694
5,738
7,163
6,685
6,010
7,367
6,443
4,226
4,251
3,826
3,390
3,162
Total SG&A 1
22,055
22,178
19,189
21,695
20,614
HR cost
4,770
4,756
3,964
4,475
3,907
5
PG fee
6,108
5,829
4,952
5,661
6,696
R&D
3,266
3,499
3,950
4,180
3,907
Marketing/advertising expenses
5,194
5,500
3,767
4,260
2,836
Depreciation and amortization
866
792
820
1,490
1,299
Other
1,851
1,802
1,736
1,629
1,969
6
Other Income
Other Expense
7
Includes: impairment loss
1 Breakdown of COGS and SG&As are unaudited.
2 Royalty includes royalties paid to third-party
developers in order for us to obtain the right to
publish their games.
3 HR cost includes salaries, bonuses and benefits for
our live game developers, who support post launch
servicing, updating and support for our games.
429
181
7,708
741
1,197
2,950
3,826
2,277
9,320
6,459
2,890
3,648
2,228
9,240
6,063
4 Other (COGS) primarily consists of depreciation and
amortization of assets related to existing games,
connection fees (mainly comprised of co-location and
datacenter fees, internet bandwidth and access fees),
and the costs of purchasing and maintaining our
servers and computer equipment.
5 PG fee in SG&A includes commissions made to
external payment gateway companies when users
purchase in-game items in PC Online games that we
service. It also includes mobile carrier-related
commissions we pay regarding our Japanese mobile
browser games, commissions we pay to Apple/Google
regarding our mobile native games globally, and
platform commission fees related to mobile browser
games.
6 Other Income includes other non-operating income, reversal of
deferred revenue, gain on sale of properties, gain on change in
equity and gain on step acquisition.
7 Other Expense includes other non-operating expenses, loss on
sale/disposal of properties, loss on impairment of tangible
fixed assets, loss on impairment of intangible assets, loss on
impairment of other fixed assets and loss on change in equity.
It also includes impairment loss of game IPs and goodwill.
© 2020 NEXON Co., Ltd. All Rights Reserved.
26View entire presentation