NEXON Q2 2024 Investor Presentation

Key insights

6 takeaways

01
Nexon achieved record Q2 2024 revenue of ¥122.5 billion, a significant increase from ¥94.4 billion in Q2 2023, driven by the launch of Dungeon&Fighter Mobile in China.See it on page 7
02
The company outperformed its initial financial outlooks across revenue, operating income, and net income, while maintaining total assets of ¥1.25 trillion.See it on page 5
03
The Finals has surpassed 20 million downloads, and Nexon is partnering with Tencent to adapt the title for the Chinese market as part of its global expansion strategy.See it on page 40
04
Nexon is balancing the long-term revenue stability of legacy franchises like MapleStory with the growth of newer titles, including The First Descendant and The Finals.See it on page 43
05
Q3 2024 projections indicate record-high quarterly revenue, though this will be offset by rising operating costs related to marketing, platform fees, and performance-based compensation.See it on page 14
06
Despite a year-over-year decline in operating cash flow to ¥34.3 billion, the company remains focused on leveraging its global user base to sustain growth momentum.See it on page 26

Summary

Nexon achieved record-breaking financial results in the second quarter of 2024, with revenue reaching ¥122.5 billion, a significant increase from the ¥94.4 billion recorded during the same period in 2023. This performance, which exceeded initial outlooks across revenue, operating income, and net income, was primarily propelled by the successful launch of Dungeon&Fighter Mobile in China and the sustained performance of core legacy franchises. While operating cash flow saw a year-over-year decline to ¥34.3 billion, the company maintains a robust financial position with total assets valued at ¥1.25 trillion.

The company’s growth strategy centers on a dual approach: maximizing the longevity of established intellectual properties through rigorous live operations and aggressively expanding its global footprint with new titles. While legacy pillars such as MapleStory continue to generate substantial long-term revenue, newer entries like The First Descendant and the first-person shooter The Finals are becoming critical components of the portfolio. The Finals has already surpassed 20 million downloads, and a strategic partnership with Tencent is currently underway to adapt the title for the Chinese market, signaling a clear intent to capture broader international audiences.

Looking toward the third quarter of 2024, projections indicate continued record-high quarterly revenue. However, this growth is expected to be accompanied by rising operating costs, driven by increased marketing expenditures, platform fees, and performance-based compensation. Despite regional volatility and the inherent challenges of year-over-year comparisons for mature titles, the company remains focused on leveraging its massive global user base to sustain momentum. By balancing the stability of its core Korean segment with targeted expansion into new markets and genres, the firm aims to navigate evolving industry conditions while maintaining its trajectory of high-performance growth.