Nexon Quarterly Securities Report: Q3 22nd Fiscal Year

Key insights

6 takeaways

01
Nexon achieved record-breaking Q3 revenue of ¥120,256 million, representing a 23.4% year-over-year increase driven by core titles including MapleStory, Blue Archive, and EA SPORTS FC.See it on page 6
02
Quarterly operating income surged by 46.9%, though net income attributable to owners of the parent company declined by 14.6% due to reduced finance income from foreign exchange fluctuations.See it on page 7
03
The company maintains a strong financial position with total assets of ¥1,193,598 million and an equity ratio of 82.5% as of September 30, 2023.See it on page 8
04
Nexon is prioritizing shareholder value through the retirement of 16.7 million treasury shares and the authorization of a new share buyback program valued at up to ¥30 billion.See it on page 43
05
Financial assets measured at fair value rose to ¥202,866 million, bolstered by active portfolio management and the reclassification of the Smash Capital Fund I L.P. from equity-method investments.See it on page 33
06
Year-to-date cash and cash equivalents decreased by ¥159,193 million, a shift attributed to strategic capital allocation, increased time deposits, and ongoing investment activities.See it on page 8

Summary

Nexon’s financial performance for the third quarter of the 22nd fiscal year demonstrates robust growth, characterized by record-breaking quarterly revenue of ¥120,256 million and a 23.4% year-over-year increase. This momentum, largely sustained by the strong performance of core titles such as MapleStory, Blue Archive, and EA SPORTS FC, contributed to a nine-month revenue total of ¥338,779 million. While operating income surged by 46.9% during the quarter, net income attributable to owners of the parent company experienced a 14.6% decline, primarily due to reduced finance income from foreign exchange fluctuations compared to the prior year.

The company maintains a solid financial foundation, evidenced by total assets of ¥1,193,598 million and a strong equity ratio of 82.5% as of September 30, 2023. Although cash and cash equivalents decreased by ¥159,193 million year-to-date, this shift reflects strategic capital allocation, including increased time deposits and ongoing investment activities. Financial assets measured at fair value rose to ¥202,866 million, supported by active portfolio management and the reclassification of specific investment vehicles, such as the Smash Capital Fund I L.P., which was moved from equity-method investments to financial assets following governance changes.

Capital management remains a central priority, with the company actively seeking to enhance shareholder value and capital efficiency. Recent initiatives include the retirement of over 16.7 million treasury shares and the authorization of a new share buyback program valued at up to ¥30 billion. By balancing aggressive investment in PC online gaming segments with disciplined equity management and portfolio adjustments, the company continues to navigate global market volatility while maintaining a trajectory of sustained fiscal expansion across its international operations.