Nexon Consolidated Financial Results for the Fiscal Year Ended December 31, 2017

Key insights

5 takeaways

01
Nexon reported a 28.3% revenue increase to 234,929 million yen and a 181.9% surge in net income to 56,750 million yen for the fiscal year ending December 31, 2017.See it on page 6
02
Financial growth was primarily driven by the sustained popularity of the PC title Dungeon&Fighter in China and the successful launch of new mobile content in Korea.See it on page 7
03
The company maintains a strong balance sheet with 545,956 million yen in total assets and an 85.2% equity ratio, prioritizing capital retention for M&A and new business development over dividends.See it on page 21
04
Basic earnings per share reached 129.35 yen, and a 2-for-1 stock split was scheduled for April 1, 2018, to improve liquidity and investor accessibility.See it on page 28
05
Management projects continued year-over-year growth in revenue and operating income for Q1 2018, supported by ongoing performance in China and mobile portfolio expansions in North America and Korea.See it on page 9

Summary

Nexon achieved substantial financial expansion during the fiscal year ending December 31, 2017, characterized by a 28.3 percent revenue increase to 234,929 million yen. This growth was underpinned by a 181.9 percent surge in net income attributable to owners of the parent, which reached 56,750 million yen. The company’s performance was primarily propelled by the enduring popularity of flagship PC titles, most notably Dungeon&Fighter in the Chinese market, alongside the successful introduction of new mobile gaming content in Korea. These results reflect a broader strategy of leveraging microtransaction-based monetization models across global markets through a combination of direct operations and strategic licensing agreements.

The company maintains a robust financial position, evidenced by total assets of 545,956 million yen and a high equity ratio of 85.2 percent. Management has prioritized the retention of capital to fuel future growth, specifically targeting mergers, acquisitions, and new business development rather than dividend distributions. This fiscal discipline is complemented by a commitment to International Financial Reporting Standards, ensuring transparency and comparability for global stakeholders. Basic earnings per share rose to 129.35 yen, and the company announced a 2-for-1 stock split effective April 1, 2018, to enhance stock liquidity and broaden its investor base.

Looking ahead, the company anticipates continued momentum in the first quarter of 2018, projecting significant year-over-year growth in both revenue and operating income. This outlook is supported by sustained performance in China and the planned expansion of the mobile portfolio into North American and Korean markets. By balancing aggressive investment in new content with operational efficiency, the company remains positioned to capitalize on its established PC online presence while scaling its mobile footprint internationally.