NEXON Consolidated Financial Results for the Fiscal Year Ended December 31, 2021

Key insights

6 takeaways

01
Nexon reported 274.5 billion yen in 2021 consolidated revenue, a 6.3% decline compared to 2020 due to difficult year-over-year comparisons in Korea and China.See it on page 7
02
Net income more than doubled to 114.9 billion yen, driven by favorable tax impacts and significant finance income, including foreign exchange gains.See it on page 1
03
Operating income decreased by 17.9% as the company faced revenue contraction across both its PC online and mobile segments.See it on page 29
04
The company maintains a strong financial position with 365.2 billion yen in cash and cash equivalents and total equity of 845.9 billion yen.See it on page 8
05
Strategic actions in 2021 included the full acquisition of Embark Studios AB and the execution of 16.0 billion yen in treasury stock purchases.See it on page 26
06
Management increased the year-end dividend to 5.0 yen per share, signaling confidence in long-term stability despite anticipated higher marketing and HR costs in 2022.See it on page 11

Summary

Nexon concluded the 2021 fiscal year with consolidated revenue of 274.5 billion yen, marking a 6.3 percent decline from the record-breaking performance of 2020. This downturn, which affected both PC online and mobile segments, was largely attributed to difficult year-over-year comparisons in key markets such as Korea and China. Despite the contraction in top-line revenue and a 17.9 percent decrease in operating income, the company achieved a significant surge in net income, which more than doubled to 114.9 billion yen. This bottom-line growth was primarily fueled by favorable tax impacts and substantial finance income, including notable foreign exchange gains.

The company maintained a robust financial foundation throughout the year, ending the period with 365.2 billion yen in cash and cash equivalents and total equity of 845.9 billion yen. Strategic corporate activities during this period included the full acquisition of Embark Studios AB, the implementation of a new revaluation model for bitcoin holdings, and the execution of treasury stock purchases totaling 16.0 billion yen. Reflecting this underlying stability, the company increased its year-end dividend to 5.0 yen per share, signaling confidence in its long-term trajectory despite the immediate revenue pressures.

Looking forward, the business model remains anchored in a diversified approach to self-publishing and licensing across global markets. While management anticipates mixed regional revenue trends and elevated human resources and marketing expenditures in early 2022, the focus remains on sustaining long-term growth through strategic game development and capital allocation. By balancing operational challenges with a disciplined investment strategy, the company continues to navigate the complexities of the global gaming landscape while leveraging its strong liquidity to support future expansion.