Nexon Investor Presentation: Q2 2025

Key insights

6 takeaways

01
Nexon achieved a 6 percent year-over-year revenue increase on a constant-currency basis, driven by a 62 percent surge in PC and console revenue from core franchises like Dungeon&Fighter, MapleStory, and the FC franchise.See it on page 12
02
Net income declined due to foreign exchange volatility and the underperformance of Dungeon&Fighter Mobile in China, despite record-breaking performance in the Korean market.See it on page 11
03
The company projects a year-over-year revenue decline for Q3 2025, citing difficult comparisons against previous mobile launches and the initial release of The First Descendant.See it on page 21
04
Operational costs are expected to rise as the company increases spending on marketing, royalties, and infrastructure to support the upcoming launches of ARC Raiders and MABINOGI MOBILE.See it on page 24
05
Nexon is prioritizing shareholder value through capital allocation, having completed a ¥50 billion share repurchase program in June with an additional ¥25 billion buy-back authorized through October.See it on page 25
06
The company faces ongoing business risks including cybersecurity threats, shifting global regulations, and intense competition within the international gaming market.See it on page 38

Summary

Nexon’s financial performance for the second quarter of 2025 reflects a period of strategic transition characterized by robust growth in core PC and console franchises alongside shifting mobile market dynamics. The company achieved a 6 percent year-over-year revenue increase on a constant-currency basis, bolstered by the sustained popularity of established titles such as Dungeon&Fighter, MapleStory, and the FC franchise. While PC and console revenue surged by 62 percent, overall net income faced downward pressure due to foreign exchange volatility and a changing revenue mix following the introduction of new mobile offerings.

Geographically, the company experienced record-breaking success within the Korean market, complemented by positive momentum across North America and Europe. However, these gains were partially offset by the underperformance of Dungeon&Fighter Mobile in China. Looking toward the third quarter of 2025, the company anticipates a year-over-year revenue decline as it faces challenging comparisons against previous mobile launches and the initial release of The First Descendant. Operational costs are expected to rise as the firm increases investments in marketing, royalties, and payment infrastructure to support the upcoming releases of ARC Raiders and MABINOGI MOBILE.

Despite these rising expenditures and inherent risks—including cybersecurity threats, regulatory shifts, and intense global competition—the company maintains a strong commitment to shareholder value. This is evidenced by the completion of a ¥50 billion share repurchase program in June and the authorization of an additional ¥25 billion buy-back through October. By balancing aggressive global expansion with disciplined capital allocation, the organization continues to navigate the complexities of the international gaming landscape while preparing for its next cycle of product launches.