[Alpha Biz= Reporter Kim Jisun] On the 14th, Nexon Games announced that its consolidated operating profit for the first quarter of this year was 2.5 billion won, down by 81% compared to the same period last year. This decline was largely attributed to the increase in operating expenses, including salaries and welfare costs.
Revenue increased by 1% year-on-year to 52.6 billion won. Looking at sales by business segment, mobile game revenue, which accounts for a significant portion of total sales, decreased by 9.6% year-on-year to 37.3 billion won. On the other hand, online game revenue increased by 40% to 14.7 billion won.
Rental income through its subsidiary, Pangyo Central Development, increased to 600 million won from the previous year's 300 million won. A Nexon Games official stated, "The increase was due to a rise in rent following changes to the lease agreement with the tenant."
Compared to the previous quarter, revenue increased by 27.7%, and operating profit turned positive. The success was attributed to significant updates such as the third anniversary update of Blue Archive in Japan, large-scale updates for both Korean and global servers, and updates to characters and weapons in Sudden Attack's season pass. Additionally, the increase in operating expenses was mitigated by the resolution of the increase in personnel expenses resulting from one-time costs related to group welfare improvements, leading to a 2.9% decrease in operating expenses compared to the previous quarter.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
