Nexon Q2 2017 Investor Presentation

Key insights

6 takeaways

01
Nexon reported Q2 2017 revenue of ¥47.1 billion, representing a 23% year-over-year increase driven largely by the 9th anniversary update for Dungeon&Fighter in China.See it on page 10
02
The company outperformed internal financial outlooks across all major metrics, including operating and net income, while maintaining high user engagement.See it on page 10
03
China and Korea remain the company's primary revenue drivers, collectively accounting for 82% of total 2016 revenue through core franchises like MapleStory and Dungeon&Fighter.See it on page 30
04
Nexon projects Q3 2017 revenue growth between 17% and 26%, supported by a pipeline of new releases including LawBreakers.See it on page 4
05
The company is balancing its established revenue streams with increased expenditures in marketing, human resources, and variable royalty obligations to sustain growth.See it on page 17
06
Nexon maintains a workforce of 5,552 employees, with operations heavily concentrated in East Asia and Korea serving as the primary corporate hub.See it on page 27

Summary

Nexon achieved significant financial growth during the second quarter of 2017, recording revenues of ¥47.1 billion. This 23 percent year-over-year increase was primarily fueled by the sustained popularity of core titles, most notably the 9th anniversary update for Dungeon&Fighter in the Chinese market. The company consistently outperformed its internal performance outlooks across all major financial metrics, including operating and net income, while maintaining high levels of user engagement.

The company’s operational footprint remains heavily concentrated in East Asia, with Korea serving as the primary hub for its 5,552-person workforce. Revenue streams are similarly localized, as China and Korea collectively accounted for 82 percent of total 2016 revenue, anchored by the long-term success of franchises like MapleStory and Dungeon&Fighter. While the Japanese corporate entity reported a net loss in 2016 due to extraordinary charges, the broader organization maintains a stable financial foundation supported by high-margin operations in its primary territories.

Looking toward the remainder of 2017, the company anticipates continued momentum with projected revenue growth between 17 and 26 percent for the third quarter. This optimistic outlook is supported by a robust pipeline of new releases, including LawBreakers, which are expected to offset rising expenditures in marketing, human resources, and variable royalty obligations. By balancing established revenue drivers with strategic investments in new content, the company aims to sustain its upward trajectory through the second half of the fiscal year.