Nexon Q1 2024 Investor Presentation

Key insights

6 takeaways

01
Nexon expects the Q2 2024 launch of Dungeon&Fighter Mobile in China to serve as the primary catalyst for revenue growth, offsetting projected declines in the Korean market.See it on page 14
02
The company is prioritizing shareholder returns through a 30-billion yen share repurchase program and a commitment to increased dividends.See it on page 18
03
Nexon maintains a strong financial foundation with net assets reaching ¥186,385 million by the end of 2023 and a global workforce exceeding 8,500 employees.See it on page 32
04
Q1 2024 financial performance was anchored by the sustained popularity of key titles, specifically FC Online, FC Mobile, and Blue Archive.See it on page 5
05
Future growth strategy focuses on a reorganized franchise management model and the development of new titles, including The First Descendant and The First Berserker: Khazan.See it on page 2
06
Management aims to improve profit margins by balancing aggressive investment in new intellectual property with disciplined cost management and operational efficiency.See it on page 2

Summary

Nexon’s financial performance in the first quarter of 2024 surpassed initial expectations, anchored by the sustained popularity of key titles such as FC Online, FC Mobile, and Blue Archive. While year-over-year revenue figures reflect a decline due to challenging comparisons with the previous fiscal period, the company remains focused on long-term value creation. This strategy is supported by a robust asset base, with net assets reaching ¥186,385 million by the end of 2023, and a global workforce exceeding 8,500 employees. The company continues to prioritize shareholder returns, evidenced by a commitment to increased dividends and a 30-billion yen share repurchase program.

The growth trajectory for the remainder of 2024 hinges on a reorganized franchise management strategy and the expansion of core intellectual properties. The highly anticipated launch of Dungeon&Fighter Mobile in China serves as a primary catalyst for projected revenue growth in the second quarter, intended to offset anticipated declines in the Korean market. Beyond immediate releases, the company is investing in a diverse pipeline of new titles, including The First Descendant and The First Berserker: Khazan, to ensure sustained commercial momentum.

These projections are underpinned by the historical success of foundational franchises like Dungeon&Fighter and MapleStory, which have generated billions in life-to-date revenue. However, management acknowledges that these forward-looking goals are subject to inherent market risks, including regulatory shifts, competitive pressures, and operational challenges. By balancing aggressive investment in new IP with disciplined cost management and operational efficiency, the company aims to improve profit margins while navigating the complexities of the global gaming landscape.