NEXON Quarterly Securities Report: The Third Quarter of the 20th Fiscal Year

Nexon maintains a robust financial trajectory through the third quarter of 2021, characterized by a strategic focus on multi-platform expansion and the leveraging of established intellectual properties. While quarterly revenue experienced a modest 4.4% year-over-year decline to ¥75,890 million—largely due to comparisons against record-breaking performance in the prior year—the company achieved a substantial 132.1% increase in net income, reaching ¥37,902 million. This profitability surge was driven by significant finance income, favorable exchange rate fluctuations, and gains from the revaluation of crypto-asset holdings.

The company’s balance sheet remains exceptionally strong, with total assets reaching ¥957,998 million and an improved equity ratio of 84.3% as of September 30, 2021. Cash and cash equivalents grew to ¥472,021 million, providing the liquidity necessary to support ongoing operations across its primary geographic segments of Korea, Japan, China, and North America. Operational stability is further evidenced by consistent dividend payments and a disciplined approach to research and development, alongside the adoption of rigorous IFRS accounting standards for revenue recognition and fair value measurement of financial instruments.

Strategic growth initiatives remain a central priority, underscored by the full acquisition of Embark Studios AB and a $500 million investment commitment into Smash Capital and Alignment Growth funds. By classifying bitcoin as an intangible asset and utilizing a revaluation model, the company has integrated digital assets into its broader financial strategy. These developments, combined with a steady focus on core PC and mobile game operations, position the organization to navigate market fluctuations while maintaining a solid foundation for long-term value creation across its global portfolio.