Q2 2022 Earnings Prepared Remarks

Nexon’s second quarter 2022 earnings results demonstrate the company’s strategic focus on long-term player engagement and the efficacy of its proprietary live operations model. By prioritizing user retention over aggressive short-term monetization, the company achieved record-breaking quarterly revenue of 84.1 billion yen, a 50% increase year-over-year. This growth was driven by the sustained performance of legacy franchises like MapleStory and Dungeon&Fighter, alongside the successful launch of Dungeon&Fighter Mobile in Korea.

The company’s financial performance highlights a shift toward a more robust earnings profile, supported by a diversified portfolio of virtual worlds. While operating income rose 47% to 22.7 billion yen, net income saw a significant 176% increase to 24.7 billion yen, bolstered by favorable foreign exchange gains. Despite some regional variance—specifically lower-than-expected performance in China and Japan—the company remains committed to its long-term development pipeline, including upcoming titles such as KartRider: Drift, HIT2, and new projects from Embark Studios.

Nexon’s methodology centers on the "live operations" model, which involves continuous content updates, balance management, and community engagement to extend the lifecycle of its intellectual property. This approach is positioned as an "anti-fragile" business strategy, allowing the company to maintain stability during periods of global economic volatility. Looking ahead, the company plans to continue its investment in talent and technology while maintaining a shareholder return strategy that includes a new 100 billion yen stock repurchase program to be executed over the next three years. The company’s outlook for the third quarter remains optimistic, anticipating continued momentum from its core franchises and the integration of new mobile releases.