Financial Glossary and Balance Sheet Summary
.
•
Q1 2024 Financial Outlook
Expect a Y/Y revenue decline in our major franchises
•
Revenues
Constant currency' down 27% to 19%
Expect Y/Y decreases in China Dungeon&Fighter,
FC ONLINE2, and Korea MapleStory
Despite the anticipated Y/Y decrease, Q1 2024 is
expected to be the second-highest Q1 revenue in
Nexon history
(Unit: \ millions, except per share data)
Operating Income
Expect a Y/Y decrease primarily due to revenue
decrease
Expect increases in HR costs³, cloud service costs,
outsourcing costs as well as one-time losses
•
Net Income4
Expect a Y/Y decrease primarily due to operating
income decrease
In Q1 2023, we recorded a ¥5.6 billion FX gain
primarily on U.S. dollar-denominated cash deposits
and ¥2.9 billion gain on valuation of securities
(Unit: \ billions)
Q1 2024 (High-end)
Revenues
PC5
Q1 2023
¥124,087
93,070
Q1 2024 Outlook
YoY %
¥97,122
71,956
2
¥107,112
79,146 (23%)
(22%)
2
(14%)
Revenues
Operating Income
Net Income4
(15%)
Mobile
31,017
25,166
27,966 (19%)
~
(10%)
124.1
Operating income
56,275
15,158
23,360
(73%)
~
(58%)
107.1
Net income4
52,791
16,354
22,919
(69%)
2
(57%)
Earnings per share
61.63
19.47
27.29
FX Rate Assumptions
100 KRW/JPY
CNY/JPY
USD/JPY
10.41
11.06
11.06
19.34
20.49
132.34
147.06
20.49
147.06
11%
do do dlo
6%
6%
56.3
52.8
23.4
22.9
Forex sensitivity: Every one Japanese yen
move against the U.S. dollar would have the
following impact on our financials for Q1 2024
Revenues
Operating Income
0.69 billion yen
0.19 billion yen
1 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in
foreign currency exchange rates. Constant-currency basis amounts are calculated using the average
foreign currency exchange rates for the comparable period in the prior year and applied to the current
period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same
CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.
2 Official title is EA SPORTS FC™ ONLINE (PC) and EA SPORTS FCM ONLINE M (mobile).
2023
2024
3 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A).
4. Net income refers to net income attributable to owners of the parent.
2023
2024
2023
2024
5 PC revenues include other revenues besides PC online games and mobile games.
6 In most situations, the exchange rates of both the South Korean Won and the Chinese Yuan are
linked to the U.S. Dollar. For simplicity, forex sensitivity is calculated based on the assumption that
Korean Won and Chinese Yuan move similarly against Japanese Yen when there is an exchange rate
movement in U.S. Dollar and Japanese Yen.
© 2024 NEXON Co., Ltd. All Rights Reserved.
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