Nexon Q1 2022 Investor Presentation

Key insights

6 takeaways

01
Nexon generated ¥91.0 billion in revenue during Q1 2022, marking a 3% year-over-year increase.See it on page 10
02
Revenue growth was primarily driven by the successful launch of Dungeon&Fighter Mobile in Korea and the sustained performance of FIFA ONLINE 4.See it on page 9
03
Operating income saw a marginal decline in Q1 2022 due to strategic investments in marketing and human resources.See it on page 17
04
The company maintains a workforce of over 6,800 employees and holds total assets valued at ¥189.7 billion.See it on page 27
05
Management projects consistent revenue growth across all major geographic regions for Q2 2022, despite anticipated increases in marketing costs and royalty obligations.See it on page 17
06
Nexon's long-term strategy focuses on scaling established intellectual properties like MapleStory while aggressively diversifying its PC-dominant portfolio into mobile platforms.See it on page 48

Summary

Nexon maintains a stable financial trajectory, anchored by a robust portfolio of long-standing, multi-billion dollar franchises. During the first quarter of 2022, the company generated ¥91.0 billion in revenue, representing a 3% year-over-year increase. This growth was primarily fueled by the successful launch of Dungeon&Fighter Mobile in Korea and the sustained performance of FIFA ONLINE 4. While operating income experienced a marginal decline due to strategic investments in human resources and marketing, the company remains well-positioned for continued expansion throughout the remainder of the year.

The company’s long-term strategy centers on the development of immersive virtual worlds, leveraging its core PC-dominant portfolio while aggressively diversifying into mobile platforms. With total assets reaching ¥189.7 billion and a workforce exceeding 6,800 employees, Nexon is prioritizing the scaling of established intellectual properties such as MapleStory alongside the introduction of new titles. Management anticipates consistent revenue growth across all major geographic regions in the second quarter, though this outlook accounts for elevated operating costs associated with ongoing marketing efforts and royalty obligations.

Financial health is monitored through rigorous engagement metrics, including monthly active users, average revenue per paying user, and overall pay rates. These indicators serve as the foundation for the company’s forward-looking projections, which emphasize a commitment to sustainable growth despite the inherent volatility of the global gaming market. By balancing the maintenance of legacy franchises with the pursuit of new IP, the company aims to solidify its market position while navigating the evolving demands of the digital entertainment landscape.