Nexon outperforms rival game companies on new game expectations

2022.05.30 14:25:48 | 2022.05.30 14:58:17

“Dungeon & Fighter Mobile” [Source: Nexon]이미지 확대

“Dungeon & Fighter Mobile” [Source: Nexon]

South Korean gaming giant Nexon has succeeded in bouncing back more than 80 percent from its low last year, outperforming its rivals at home and abroad after the successful debut of “Dungeon & Fighter Mobile” as well as heightened expectations for a series of its new games due to be out by the end of this year.

Nexon shares listed in Japan rebounded 88 percent from the 52-week low of 1,680 yen ($13.23) on October 4, 2021 to 3,165 yen on May 27. Over the same period, its market cap jumped from around 15.6 trillion won ($12.5 billion) to surpass 28 trillion won.

Its Japanese peers Nintendo, Bandai Namco and Capcom made a 20 to 30 percent recovery in their stock prices over the same period.

Compared with Korean rivals, Nexon’s stock performance is more noteworthy. Krafton, NCSoft, Netmarble, and Kakao Games, lost 20 percent to up to 50 percent of their market cap during the same period after they disappointed the market with poor earnings and an absence of new releases.

Nexon’s stock outperformed its rivals after “Dungeon & Fighter Mobile” topped both Apple Store and Google Play charts when it was first released and the game is still in the top 3 two months after its release, raising expectations for a record high second-quarter earnings.

It is also expected to release five to six new games by the end of this year unlike its peers have not announced specific new release dates.

Nexon is forecast to report handsome earning results in the second quarter. The expected revenue for the second quarter is in the 795.9 billion won to 854.2 billion won range and between 221.8 billion won and 270 billion won for operating profit. Both are less than the revenue of 902.7 billion won and operating profit of 385.3 billion won it reported in the first quarter but a big jump on year from the 555.4 billion won in revenue and 108.1 billion won in operating profit during the second quarter of last year.

By Jin Young-tae and Susan Lee

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