NEXON Consolidated Financial Results for the Three Months Ended March 31, 2022

Nexon demonstrated resilient top-line growth during the first quarter of 2022, generating ¥91,034 million in revenue. This 3.1% year-over-year increase was primarily fueled by the robust performance of core gaming titles and favorable foreign exchange fluctuations. Despite this revenue expansion, profitability faced downward pressure as operating income and net income attributable to the parent company declined by 11.1% and 12.5%, respectively. These bottom-line contractions were largely the result of strategic investments in personnel, marketing initiatives, and increased royalty obligations.

The company maintains a stable financial foundation, characterized by total equity of ¥888,324 million and a high equity ratio of 83.9%. Cash and cash equivalents reached ¥376,098 million by the end of March 2022, supported by a ¥9,298 million gain from the divestiture of Six Waves Inc. shares, which helped offset a ¥17,230 million expenditure on treasury stock. This liquidity provides the necessary capital to navigate ongoing operational costs while supporting long-term development goals.

Looking toward the first half of 2022, projections indicate a significant acceleration in growth, with consolidated revenue expected to reach between ¥172,376 million and ¥178,334 million. This anticipated 19.4% to 23.6% year-over-year increase is anchored by the strong market reception of titles such as Dungeon&Fighter Mobile and FIFA ONLINE 4. While management remains optimistic about these key franchises, the outlook acknowledges potential volatility stemming from shifting global market conditions, evolving user preferences, and the persistent impact of elevated human resources and marketing expenditures.