Nexon Q1 2021 Investor Presentation

Key insights

7 takeaways

01
Nexon reported Q1 2021 revenue of ¥88.3 billion, a 7% year-over-year increase, and operating income of ¥43.3 billion, up 4%.See it on page 7
02
Mobile revenue served as a primary growth driver, surging 32% during the quarter.See it on page 10
03
Non-mobile monthly active users declined by 39% compared to the previous year, highlighting a shift in platform engagement.See it on page 10
04
While PC platforms accounted for 67% of 2020 revenue, the company is strategically pivoting its core franchises, such as MapleStory and Dungeon&Fighter, toward mobile expansion and new virtual world technologies.See it on page 8
05
The company anticipates short-term revenue volatility in Q2 2021 due to difficult year-over-year comparisons and the normalization of pandemic-driven gaming trends.See it on page 14
06
Future growth strategy relies on the upcoming launches of Mobile Dungeon&Fighter and KartRider: Drift to diversify the portfolio beyond established live-service titles.See it on page 17
07
Nexon maintains a strong financial position with total assets valued at ¥932.6 billion.See it on page 27

Summary

Nexon achieved a strong financial performance in the first quarter of 2021, recording ¥88.3 billion in revenue, which represents a 7% year-over-year increase. Operating income also saw growth, rising 4% to reach ¥43.3 billion. This success was primarily driven by the robust performance of major franchises such as MapleStory and KartRider Rush+, alongside a significant 32% surge in mobile revenue. Despite these gains, the company faces a complex landscape, evidenced by a 39% decline in monthly active users on non-mobile platforms compared to the previous year.

The company maintains a solid financial foundation with total assets valued at ¥932.6 billion, supported by a strong cash position. Historically, the business has relied heavily on PC platforms, which accounted for 67% of revenue in fiscal year 2020. While established titles like Dungeon&Fighter and MapleStory continue to serve as the core pillars of the company’s live-service model, the strategic focus is shifting toward expanding these intellectual properties onto mobile platforms and investing in new virtual world technologies.

Looking ahead, the company anticipates short-term revenue volatility in the second quarter of 2021 as global markets transition away from pandemic-driven engagement trends and face difficult year-over-year comparisons. Nevertheless, the long-term growth strategy remains centered on the development and launch of new titles, including Mobile Dungeon&Fighter and KartRider: Drift. By leveraging its existing portfolio of immersive virtual worlds while diversifying across platforms, the company aims to sustain its market position despite the inherent risks associated with evolving consumer behaviors and the broader gaming industry environment.