Major Disparities in Q3 Performance Among Top Gaming Companies

NEXON

During the third quarter, Nexon emerged as a standout performer in the gaming industry, achieving a remarkable 47 percent year-on-year increase in operating profit, reaching 46.3 billion yen ($306.6 million). This success defied market expectations, surpassing the outlook range of 36.3 billion yen to 44.5 billion yen. The company's revenue also exceeded analyst forecasts, rising by 23 percent year-on-year to 120.3 billion yen (1.9 trillion won).

Net profit for Nexon experienced a 15 percent decline, amounting to 35.2 billion yen, yet still outperformed market expectations. The company attributed its robust performance to steady sellers like mobile games Blue Archive, FC Mobile, and Wars of Prasia. 

▲ NEXON

By region, Nexon witnessed double-digit growth in Korea, China, Japan, North America, and Europe, propelled by the success of its mobile games. The PC and console role-playing game (RPG) "Dave the Diver" significantly contributed to a 78 percent year-on-year growth in North America and Europe, reaching 8.92 billion yen.

Nexon's highly anticipated online first-person shooter game, "The Finals," developed by subsidiary Embark Studios, attracted 7.5 million players during its open beta test. The game gained significant attention in the industry, boasting 270,000 simultaneous streams on the Steam platform.

In contrast, NCSoft faced challenges in Q3, reporting an 89 percent year-on-year decline in operating profit to 16.5 billion won. Revenue also dropped by 30 percent to 423.1 billion won, falling short of market expectations. Net profit plummeted by 75.83 percent to 44 billion won, below analyst predictions. 

▲ NCSOFT

NCSoft aims to revitalize its financial performance with upcoming releases, including the massively multiplayer online role-playing game (MMORPG) "Throne and Liberty," scheduled for release on December 7. The company's game lineup for the next year includes RPG Project BSS, Battle Crush, and MMO shooting game LLL.

Netmarble posted its seventh consecutive quarter of operating losses, reduced to 21.9 billion won compared to the previous year. However, this figure missed market expectations of 15.2 billion won. Revenue contracted by 9.2 percent to 630.6 billion won, falling below the market consensus of 659.1 billion won. Net loss amounted to 28.4 billion won, missing analysts' expectations of 31.9 billion won.

Netmarble anticipates a turnaround in the next quarter, with revenue from recent releases like "Tower of God: New World" and "Seven Knights New Adventure" fully reflected in the October-December period. The company recently sold its 6 percent stake in K-pop agency HYBE, valued at over 568.7 billion won, to enhance its financial structure.

Netmarble's upcoming game releases include "Paragon: The Overprime," "Arthdal Chronicles," and "Solo Leveling: Arise" scheduled for the first half of next year.

Sayart.net

Blue YIM, yimyoungseo1010@naver.com