Nexon blames missed bitcoin profit projections

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Income drops by 13%; refuses to continue as company works to “win back the trust” of MapleStory players

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Nexon released its second quarter results today and, like many of its peers, saw a year-over-year decline in key performance indicators compared to the increase in the full first quarter of the year. pandemic.

Unlike many of its peers, the free-to-play publisher has pointed out that a number of its own actions have contributed to these declines.

For the second quarter, Nexon reported revenue down 13% year-on-year to 56 billion yen ($ 507 million), with net profit down 55% to 8.96 billion yen (81.1 millions of dollars).

While revenue was lower than the company’s forecast for the quarter, its net income was slightly below forecast due to a 4.5 billion yen ($ 40.7 million) drop in the value of its holdings. in bitcoins.

In April, Nexon bought $ 100 million worth of cryptocurrency, with CEO Owen Mahoney saying bitcoin offered the company “long-term stability.”

When it comes to revenue declines, Nexon noted lower than expected user spending on MapleStory in the company’s largest market, Korea. The company has had issues with its long-running franchise since February of this year, when users were upset by the “lack of communication” regarding odds disclosures for its loot box mechanics.

Despite its efforts to address user concerns, Nexon expects Korean performance of MapleStory to decline again in the current quarter, as it “focuses on rebuilding user confidence rather than monetization. short term”.

For the third quarter, Nexon expects revenue to decline between 10% and 18% year-over-year, with net income ranging from a decline of 8% to a gain of 16%.

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