Nexon Q1 2025 Earnings Prepared Remarks

Key insights

7 takeaways

01
Nexon reported Q1 2025 revenue of ¥113.9 billion, a 5% year-over-year increase, and a 43% surge in operating income to ¥41.6 billion.See it on page 2
02
Core franchises drove performance, with Dungeon&Fighter and MapleStory achieving a combined 21% year-over-year revenue growth.See it on page 6
03
PC Dungeon&Fighter in Korea reached record-high quarterly revenue, with monthly and paying active users more than doubling.See it on page 2
04
MapleStory delivered 43% revenue growth in Korea, fueled by improved engagement metrics.See it on page 5
05
Net income declined 27% to ¥26.3 billion, primarily due to foreign exchange losses compared to gains in the prior year period.See it on page 7
06
Nexon holds approximately ¥600 billion in cash, which the company is utilizing to fund new game development and a ¥100 billion share repurchase program.See it on page 8
07
Future growth strategies include the upcoming release of the blockchain-integrated project MapleStory N and continued expansion of the IP portfolio.See it on page 3

Summary

Nexon’s first quarter 2025 financial results demonstrate a successful execution of the company’s multiyear IP Growth Initiative, characterized by a 5% year-over-year revenue increase to ¥113.9 billion and a 43% surge in operating income to ¥41.6 billion. The company’s primary objective remains the revitalization of core franchises alongside the strategic expansion of its portfolio through new game launches and global partnerships. Performance was bolstered by a significant turnaround in the Dungeon&Fighter and MapleStory franchises, which collectively achieved 21% year-over-year growth.

Key operational highlights include record-high quarterly revenue for PC Dungeon&Fighter in Korea, where monthly and paying active users more than doubled. MapleStory also showed strong momentum in Korea, delivering 43% revenue growth through improved engagement metrics. New titles, specifically The First Berserker: Khazan and MABINOGI MOBILE, met strategic objectives for global audience expansion and cross-platform engagement, respectively. While net income declined by 27% to ¥26.3 billion, this was primarily attributed to foreign exchange losses compared to gains in the prior year period.

Looking ahead to the second quarter, the company anticipates revenue to remain stable on a constant-currency basis despite difficult year-over-year comparisons stemming from the 2024 launch of Dungeon&Fighter Mobile in China. Future growth is expected to be driven by continued momentum in PC titles and the upcoming release of MapleStory N, a blockchain-integrated project. Nexon maintains a resilient financial position with approximately ¥600 billion in cash, supporting ongoing investments in new game development and a ¥100 billion share repurchase program. The company remains focused on leveraging its established franchises and live operations to navigate global economic volatility while delivering sustained value to shareholders.