NEXON Q2 2023 Investor Presentation

Key insights

6 takeaways

01
Nexon generated ¥88.4 billion in Q2 2023 revenue, marking five consecutive quarters of double-digit year-over-year growth.See it on page 8
02
The company is accelerating a 100-billion yen share repurchase program, with the completion date now set for August 2024.See it on page 16
03
Financial stability is driven by the sustained performance of legacy franchises Dungeon&Fighter and MapleStory, supplemented by newer titles like Wars of Prasia and Blue Archive.See it on page 33
04
Nexon is pivoting its 8,000-person workforce toward the development of immersive virtual worlds, with significant investments in new IPs including The Finals and Warhaven.See it on page 41
05
While global expansion is expected in North America and Europe, the Japanese market is projected to see a year-over-year revenue decline due to the sunsetting of specific mobile games.See it on page 14
06
The successful launch of Dave the Diver is a key component of the company's strategy to drive international revenue growth through the remainder of 2023.See it on page 15

Summary

Nexon achieved record financial performance in the second quarter of 2023, generating ¥88.4 billion in revenue. This result marks a significant milestone of five consecutive quarters featuring double-digit year-over-year growth. The company’s financial stability is anchored by the sustained success of long-running franchises such as Dungeon&Fighter and MapleStory, which continue to drive revenue through consistent content updates and multi-platform expansion. Recent additions to the portfolio, including Wars of Prasia and Blue Archive, have further bolstered these results, demonstrating the effectiveness of the company’s live operations strategy.

The strategic outlook for the remainder of 2023 emphasizes global expansion and portfolio diversification. While revenue growth is anticipated across North America, Europe, and other international markets, fueled by the successful launch of Dave the Diver and the continued momentum of established titles, the Japanese market faces a projected year-over-year decline due to the sunsetting of specific mobile games. To manage capital effectively and signal confidence in long-term value, the company has accelerated its 100-billion yen share repurchase program, now slated for completion by August 2024.

With a workforce of nearly 8,000 employees, the organization is pivoting toward the development of immersive, long-term virtual worlds. This transition involves significant investment in new intellectual properties, most notably The Finals and Warhaven. By balancing the reliable cash flow generated by legacy franchises with the development of high-potential new titles, the company aims to maintain its competitive position within the global gaming industry. These forward-looking initiatives remain subject to standard market risks, with further financial updates scheduled for release in November 2023.