Surpasses 6.5 Million Subscribers in One Week... Super Match Held on 31st
Stock Price Rises Over 60% in Two Months Thanks to Mobile Blockbuster Success... Market Cap Exceeds 21 Trillion
Dungeon & Fighter Mobile Also Plans to Target Chinese Market This Summer
[Asia Economy Reporter Jin-gyu Lee] Nexon will hold the 'KartRider (Kart) Rush Plus Super Match' on the 31st. It is the mobile Olympics of the 16-year-old long-running game 'Kart'. Kart Rush Plus is the mobile game version, which was released on the 12th. About 10 celebrities and influencers, including Jang Sung-kyu, Hwang Je-seong, Yoo Byung-jae, and Hong Jin-ho, will participate in the Kart racing competition. Due to the impact of the novel coronavirus infection (COVID-19), the event will be held without an audience and will be broadcast live online on the YouTube channel.
Kart Rush Plus is gaining popularity both domestically and internationally. It surpassed 6.5 million subscribers within a week of its release, and the maximum daily users reached 3.44 million. In addition, with the upcoming launch of 'Dungeon & Fighter (DNF) Mobile' targeting the Chinese market, the first-ever annual sales of 3 trillion KRW in the gaming industry is becoming more likely. The stock price has also soared by more than 60% compared to March, exceeding a market capitalization of 21 trillion KRW.
◆Kart Rush Plus Hits a Blockbuster Streak= According to the industry on the 19th, Kart Rush Plus ranked first in revenue on the Apple App Store and eighth on Google Play. Within a week of its release, it dominated the top revenue rankings on both major app markets, causing a paradigm shift in the mobile game market, which has been dominated by massively multiplayer online role-playing games (MMORPGs). It also ranked first in both revenue and popularity on the local Apple App Store in Taiwan.
Kart Rush Plus is the mobile version of Kart, which was released in 2004 and has been loved for 16 years. Kart has a strong fan base with 28 million domestic members and 380 million global members. Compared to the original, Kart Rush Plus features a more sophisticated Kart design, and players can customize their Karts with paint coatings and sticker attachments. Due to these attractions, more than 5 million people participated in the pre-registration before the release. This is the highest record among mobile games released by Nexon so far. Seo Yong-seok, head of Nexon's Casual Group, said, "We have received a lot of attention from pre-registration to after the release, and we plan to present various events such as the Kart Rush Plus Super Match in the future."
◆Market Capitalization Exceeds 21 Trillion KRW= As Kart Rush Plus races ahead, Nexon's stock price is also on the rise. Nexon, listed on the Tokyo Stock Exchange in Japan, recorded a market capitalization of approximately 1.853 trillion yen (21.9 trillion KRW) with a stock price of 2,100 yen per share as of the morning of the day. Considering that Nexon's stock price, which maintained around 1,500 yen at the beginning of this year, hit a low of 1,300 yen per share at the end of March due to the COVID-19 impact, it has risen by more than 60% in just over two months. This upward trend is due to the strong performance of mobile blockbusters such as Kart Rush Plus and 'V4', as well as the upcoming Chinese market launch of Nexon's ambitious title DNF Mobile, raising expectations for a performance rebound. Internally, Nexon expects second-quarter sales to increase by 10-19% year-on-year to around 600 billion KRW. Nexon explained, "Sustained growth of major intellectual properties (IPs) such as MapleStory and V4 is expected in Korea, and with the release of DNF Mobile in China this summer, key performance indicators will return to normal."
Industry insiders predict that if DNF Mobile succeeds in China as much as the PC game DNF, Nexon could achieve annual sales of 3 trillion KRW. DNF, which has about 600 million members worldwide, accounts for 50% of Nexon's total sales and more than 90% of its sales in China, serving as Nexon's 'cash cow'. Nexon's annual sales were 2.5296 trillion KRW in 2018 and 2.684 trillion KRW last year, approaching the 3 trillion KRW milestone. Analysts also suggest that Nexon's growth trend could be a variable in the company's sale. An industry official said, "Nexon founder Kim Jung-ju, CEO of NXC, attempted to sell the company last year but the deal fell through, so it is currently on hold," adding, "Considering the recent growth trend, maintaining management rights seems more likely."
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