Nexon Q1 2025 Earnings Letter

Key insights

7 takeaways

01
Nexon reported Q1 2025 revenue of ¥113.9 billion (up 5% YoY) and operating income of ¥41.6 billion (up 43% YoY).See it on page 3
02
Core franchises drove performance, with Dungeon&Fighter and MapleStory achieving a combined 21% YoY revenue increase.See it on page 3
03
Dungeon&Fighter achieved record-high quarterly revenue in Korea, with monthly and paying active users more than doubling.See it on page 4
04
MapleStory demonstrated long-term franchise health by recording 43% YoY revenue growth in Korea during its 22nd year of service.See it on page 5
05
The company maintains a strong financial position with approximately ¥600 billion in cash reserves and an active ¥100 billion share repurchase program.See it on page 7
06
Q2 2025 revenue is projected between ¥99.6 billion and ¥110.3 billion, reflecting difficult comparisons against the 2024 China launch of Dungeon&Fighter Mobile and negative foreign exchange impacts.See it on page 3
07
Nexon is leveraging partnerships with Tencent to drive growth in China, focusing on upcoming content for Dungeon&Fighter Mobile and pre-registrations for THE FINALS and The First Berserker: Khazan.See it on page 8

Summary

Nexon’s first-quarter 2025 performance highlights a successful execution of its IP Growth Initiative, characterized by significant turnarounds in core franchises and the strategic launch of new titles. The company reported quarterly revenue of ¥113.9 billion, a 5% year-over-year increase, and operating income of ¥41.6 billion, representing a 43% year-over-year gain. This growth was primarily driven by the strong performance of Dungeon&Fighter and MapleStory, which collectively saw a 21% year-over-year increase in revenue.

Key operational successes include record-high quarterly revenue for Dungeon&Fighter in Korea, where monthly and paying active users more than doubled. MapleStory also demonstrated robust health, achieving 43% year-over-year growth in Korea during its 22nd year of service. Additionally, the company successfully launched MABINOGI MOBILE in Korea, which exceeded expectations by securing top rankings on major mobile app stores. While some titles, such as The First Descendant, fell short of revenue targets, the company continues to leverage strategic partnerships with Tencent to expand its reach in China, particularly through upcoming content for Dungeon&Fighter Mobile and pre-registrations for THE FINALS and The First Berserker: Khazan.

Looking toward the second quarter of 2025, Nexon anticipates revenue between ¥99.6 billion and ¥110.3 billion. This outlook accounts for challenging year-over-year comparisons against the 2024 launch of Dungeon&Fighter Mobile in China and negative foreign exchange headwinds. Despite these factors, the company maintains a stable financial position, supported by approximately ¥600 billion in cash reserves. Nexon remains committed to its long-term growth strategy, which emphasizes live operations, brand extensions of established intellectual property, and a disciplined approach to shareholder returns, including an ongoing ¥100 billion share repurchase program.