Nexon Semi-Annual Securities Report: 24th Fiscal Year

Key insights

7 takeaways

01
Nexon reported total revenue of 232,784 million yen for the first half of the 2025 fiscal year, representing a modest 0.8% year-over-year increase.See it on page 6
02
Net profit attributable to owners of the parent fell by 43.2% to 43,030 million yen, driven by adverse foreign exchange fluctuations and the revaluation of financial assets, including crypto-holdings.See it on page 19
03
Operating profit remains stable at 79,309 million yen, supported by the IP Growth Initiative and the performance of core titles like Dungeon&Fighter, MapleStory, and the launch of MABINOGI MOBILE.See it on page 5
04
The company maintains a strong financial position with total assets exceeding 1.27 trillion yen and a high equity ratio of 81.7%.See it on page 18
05
Nexon prioritized shareholder returns by purchasing and cancelling approximately 19.9 million shares and issuing a 15 yen per share dividend.See it on page 44
06
The Public Investment Fund retains a 10.23% ownership stake in the company, reflecting continued institutional confidence in the long-term strategy.See it on page 14
07
R&D expenditure remained consistent at 13,163 million yen, alongside ongoing capital commitments to the Alignment Growth Fund and Smash Capital.See it on page 7

Summary

Nexon maintains a stable financial trajectory for the first half of the 2025 fiscal year, reporting total revenue of 232,784 million yen, a modest 0.8% increase compared to the previous year. This performance is underpinned by the company’s IP Growth Initiative, which leverages the enduring popularity of core PC titles such as Dungeon&Fighter and MapleStory, alongside the successful market introduction of MABINOGI MOBILE. While operating profit remains robust at 79,309 million yen, net profit attributable to owners of the parent experienced a significant 43.2% decline to 43,030 million yen. This contraction is primarily attributed to adverse foreign exchange fluctuations and the revaluation of various financial assets, including crypto-holdings.

The company continues to prioritize capital efficiency and shareholder returns despite the volatility in net earnings. A substantial portion of cash flow has been directed toward treasury share purchases and the cancellation of approximately 19.9 million shares, complemented by a 15 yen per share dividend. Furthermore, the organization sustains a strong balance sheet with total assets exceeding 1.27 trillion yen and a high equity ratio of 81.7%. Strategic investments remain a focal point, with ongoing capital commitments to the Alignment Growth Fund and Smash Capital, while research and development expenditures remain consistent at 13,163 million yen to support future pipeline development.

Geographically, operations span Japan, Korea, China, North America, and other international markets, with revenue streams heavily concentrated in the PC online and mobile gaming segments. The Public Investment Fund maintains a significant 10.23% ownership stake, signaling continued institutional confidence in the company’s long-term strategy. By balancing aggressive share buyback programs with sustained investment in core intellectual properties, the company navigates the complexities of global currency markets while reinforcing its position as a major player in the international digital entertainment industry.