FY2025 Q2 Online Earnings Presentation: Q&A Summary

Key insights

7 takeaways

01
The company projects a near-tripling of sequential revenue for The First Descendant in Q3 following a major content update.See it on page 3
02
ARC Raiders is scheduled for a competitive market launch on October 30, serving as a key pillar for the company’s Western expansion strategy.See it on page 1
03
Dungeon&Fighter (PC) revenue is expected to decline slightly in Q3 due to front-loaded content updates, though year-over-year growth remains stable.See it on page 2
04
Management is prioritizing long-term user retention and MAU for Dungeon&Fighter Mobile in China through co-development with Tencent, rather than pursuing short-term revenue spikes.See it on page 4
05
The company is leveraging its dominant Korean market position to fund international growth, specifically targeting China with localized content and the West with new console and mobile titles.See it on page 3
06
Labor costs remain stable, and management expects no operational or financial disruption in Q3 despite ongoing labor union activities in Korea.See it on page 2
07
The company is utilizing classic IP revivals, such as MapleStory Worlds in Taiwan, to drive platform engagement and long-term user retention.See it on page 4

Summary

The FY2025 Q2 earnings Q&A session outlines a strategic focus on balancing stable, long-term revenue from established PC franchises with aggressive global expansion through new mobile and console titles. The company’s primary thesis centers on leveraging its dominant position in the Korean market to fund international growth, specifically targeting the Chinese market through localized content and the Western market through new releases like ARC Raiders.

Key operational highlights include the anticipated October 30 launch of ARC Raiders, which is positioned as a competitively priced alternative in a saturated market, and the upcoming global expansion of MABINOGI MOBILE. Management expects significant Q3 revenue growth for The First Descendant, projecting a near-tripling of sequential revenue following a major content update. Conversely, revenue for Dungeon&Fighter (PC) is expected to show a slight quarter-over-quarter decline in Q3 due to the front-loading of content updates in the first half of the year, though year-over-year growth remains steady. In China, the company is prioritizing long-term user retention and Monthly Active Users (MAU) for Dungeon&Fighter Mobile through co-development initiatives with Tencent rather than seeking immediate, short-term spikes.

Regarding corporate operations, management maintains that current labor costs are stable and aligned with long-term growth objectives. While year-over-year labor expenses appear lower due to reduced performance-based bonuses, the company continues to invest in talent acquisition. Leadership emphasized that ongoing labor union activities in Korea are not expected to disrupt operations or impact Q3 financial performance. The company remains committed to a strategy of sustainable, long-term live operations, utilizing classic IP revivals—such as the success of MapleStory Worlds in Taiwan—to foster platform engagement and user retention.