NEXON Q1 2024 Earnings Conference Call: Q&A Summary

Key insights

5 takeaways

01
Nexon is prioritizing long-term franchise stability for Dungeon&Fighter (DNF) in China, successfully increasing the in-game Gold value from 100 RMB to 140 RMB per 100 million units with a target of 170–200 RMB.See it on page 1
02
The upcoming launch of DNF Mobile is positioned as the primary growth driver to offset an expected year-over-year revenue decline for the PC version of DNF in Q2.See it on page 2
03
MapleStory is a major growth engine, delivering 33% year-over-year revenue growth for the PC version outside Korea and 65% growth for MapleStory M.See it on page 4
04
The shooter title THE FINALS is undergoing a strategic pivot after experiencing high churn in Asian markets, with Embark Studios planning major content updates throughout the year to improve retention.See it on page 3
05
Nexon’s mid-to-long-term corporate strategy focuses on integrated franchise management to ensure stability and attract younger demographics across global markets.See it on page 4

Summary

The Nexon Q1 2024 earnings conference call focused on the company’s long-term franchise management strategy, specifically addressing the stabilization of the Dungeon&Fighter (DNF) PC title in China and the upcoming launch of DNF Mobile. Leadership emphasized a commitment to sustainable growth over short-term monetization, particularly regarding the in-game economy of the PC version of DNF in China. By increasing content volume, the company successfully raised the value of the in-game currency, Gold, from 100 RMB to 140 RMB per 100 million units, with a long-term target of 170 to 200 RMB to normalize operations.

While the PC version of DNF is expected to see a year-over-year revenue decline in Q2 due to the slow return of light users, the company anticipates that the launch of DNF Mobile will serve as a primary growth driver. Beta testing for the mobile title yielded positive retention metrics, and management expects the mobile platform to create synergy with the PC version, effectively expanding the overall franchise.

Beyond the DNF franchise, the company provided updates on its broader portfolio. The shooter title THE FINALS experienced high churn in Asian markets, prompting a collaborative effort between Embark Studios and Korean operations to implement major content updates throughout the year to improve retention. Meanwhile, the MapleStory franchise continues to demonstrate strong performance, with 33% year-over-year revenue growth for the PC version outside Korea and 65% growth for MapleStory M. The company’s overarching mid-to-long-term strategy centers on integrated franchise management, leveraging successful IP expansion models to ensure stability and attract younger demographics across global markets.