Nexon Consolidated Financial Results for the Fiscal Year Ended December 31, 2023

Key insights

6 takeaways

01
Nexon achieved record revenue of ¥423.4 billion in 2023, a 19.7% year-over-year increase driven by core titles including MapleStory, Dungeon&Fighter, and EA SPORTS FC™ ONLINE.See it on page 6
02
Operating income rose 29.9% to ¥134.7 billion, but net income fell 29.6% to ¥70.6 billion due to a ¥44.4 billion impairment loss on equity method investments and higher tax expenses.See it on page 19
03
The company projects a decline in revenue and operating income for Q1 2024, citing difficult year-over-year comparisons and ongoing strategic business model transitions.See it on page 10
04
Geographic performance was mixed, with growth in North America and international markets offsetting revenue declines within the Chinese market.See it on page 31
05
Total cash and cash equivalents decreased to ¥280.5 billion by year-end, reflecting aggressive capital allocation through investments and treasury stock purchases.See it on page 8
06
Nexon maintains a stable financial position and remains committed to its dividend policy of 5.0 yen per share for both interim and year-end periods.See it on page 11

Summary

Nexon achieved record-breaking financial performance during the fiscal year ended December 31, 2023, generating ¥423.4 billion in revenue. This 19.7% year-over-year increase was primarily fueled by the robust performance of core PC and mobile titles, including MapleStory, Dungeon&Fighter, and EA SPORTS FC™ ONLINE. While operating income rose by 29.9% to ¥134.7 billion, net income attributable to owners of the parent company fell by 29.6% to ¥70.6 billion. This bottom-line contraction was largely attributed to a significant ¥44.4 billion impairment loss on equity method investments, alongside increased tax expenses and reduced finance income.

The company’s geographic performance remained varied, with growth in North America and other international markets helping to offset revenue declines within the Chinese market. Despite maintaining stable cash flow from operating activities at ¥128.7 billion, total cash and cash equivalents decreased to ¥280.5 billion by year-end. This reduction reflects a strategic shift toward aggressive capital allocation, characterized by substantial investments, treasury stock purchases, and a transition in business models. The firm continues to rely on a microtransaction-based monetization strategy across its diverse portfolio of self-published and licensed titles.

Looking ahead to the first quarter of 2024, the company has adopted a cautious outlook, projecting year-over-year declines in both revenue and operating income. These expectations are driven by challenging year-over-year comparisons for major franchises and the ongoing impact of strategic business model transitions. Despite these short-term headwinds, the organization maintains a stable financial position and remains committed to its established dividend policy of 5.0 yen per share for both interim and year-end periods, underscoring a continued focus on long-term shareholder value and multi-platform live operations.