May 08, 2024

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[THE INVESTOR] Online game company Nexon said Nov. 10 that its operating profit in the July-September period came in at 16.29 billion yen (US$154.3 million), down 11 percent from a year earlier. The figure is based on the exchange rate in the third quarter this year.

Revenue also declined 11 percent to 44.3 billion yen during the cited period. 

Eliminating the effects of exchange rate fluctuations, quarterly sales increased 4 percent on-year, according to the firm.

By region, South Korea accounted for 41 percent of its third-quarter sales while China and Japan took up 39 percent and 8 percent, respectively. Europe and North America made up 6 percent and 5 percent of the entire revenue.

“Nexon’s strategic investments, partnerships, and capacity game development has synergically yielded positive results,” said Owen Mahoney, the chief executive of Nexon, adding that it would strengthen its presence in the global market with new game titles, including “Peria Chronicles” and “Law Breakers”, which will be showcased at the G-Star game trade show from Nov. 16 to 20.

In recent months, Nexon has been reeling from a graft scandal which involves founder and Chairman Kim Jung-ju, a high-rank prosecutor and political figures.

Kim is suspected to have, among others, bribed and paid travel expenses and a luxury car lease for former Senior Prosecutor Jin Kyung-joon allegedly in the hope of receiving legal favors.

Allegedly, using corporate money Kim also bought a land site worth 130 billion won with a high premium, which was previously owned by the family of Woo Byung-woo, a former presidential secretary.

Kim stepped back from the management of the game company in July, but still remains as the chief of NXC, the holding firm of Nexon.

By Kim Young-won (wone0102@heraldcorp.com)