Nexon Quarterly Securities Report: Q1 2023

Key insights

6 takeaways

01
Nexon reported record-breaking Q1 2023 financial performance with revenue reaching ¥124,087 million, a 36.3% year-over-year increase.See it on page 7
02
Operating income grew by 46.1% to ¥56,275 million, driven by strong momentum in PC and mobile segments for flagship titles including EA SPORTS FIFA ONLINE 4, Dungeon&Fighter, and Blue Archive.See it on page 6
03
Basic earnings per share rose to ¥61.63, up from ¥45.35 in the prior year, reflecting improved profitability under IFRS standards.See it on page 35
04
The company prioritized shareholder returns by purchasing ¥29,571 million in treasury stock, resolving to retire 16.75 million shares, and maintaining a dividend of ¥5.0 per share.See it on page 37
05
Total equity reached ¥875,057 million, supported by a diverse portfolio of financial assets with a total fair value of ¥171,089 million.See it on page 7
06
Strategic capital management included a 50% stake acquisition in a Seoul-based real estate investment trust alongside ongoing fund commitments.See it on page 36

Summary

Nexon achieved record-breaking financial performance in the first quarter of 2023, characterized by a 36.3% year-over-year revenue increase to ¥124,087 million. This growth was primarily fueled by the robust performance of flagship titles, including EA SPORTS FIFA ONLINE 4, Dungeon&Fighter, and Blue Archive. Operating income rose by 46.1% to ¥56,275 million, reflecting strong momentum across both PC online and mobile gaming segments, particularly within the core markets of Korea and China. Basic earnings per share improved significantly to ¥61.63, up from ¥45.35 in the prior year, underscoring the company’s enhanced profitability under IFRS reporting standards.

The company maintained a solid financial position with total equity reaching ¥875,057 million, despite substantial cash outflows related to strategic investment activities and capital management. Significant investments included the acquisition of a 50% stake in a Seoul-based real estate investment trust and the management of various fund commitments. Furthermore, the company prioritized capital efficiency through the purchase of ¥29,571 million in treasury stock and a subsequent resolution to retire 16.75 million shares. These actions, alongside a stable dividend payout of ¥5.0 per share, demonstrate a commitment to balancing aggressive growth investments with shareholder returns.

Financial assets remained a focal point of the quarterly results, with a total fair value of ¥171,089 million and a notable increase in Level 3 assets resulting from investment reclassifications. By adjusting its portfolio of equity method affiliates and maintaining consistent accounting policies, the company successfully navigated a period of expansion. These results confirm a trajectory of sustained growth and operational stability, positioning the firm to leverage its diverse intellectual property portfolio while optimizing its capital structure for long-term value creation.