Nexon Q3 2020 Investor Presentation

Key insights

6 takeaways

01
Nexon achieved record Q3 2020 revenue of ¥79.4 billion, a 52% year-over-year increase driven by a 114% surge in Korean revenue and a 140% expansion in mobile platform earnings.See it on page 14
02
Net income fell 59% to ¥16.3 billion due to rising operating costs and unfavorable finance-related expenses despite strong top-line growth.See it on page 30
03
The company announced a ¥100 billion share repurchase program to be executed over the next three years to bolster shareholder value.See it on page 22
04
Performance in China declined due to the postponement of the Mobile Dungeon&Fighter launch and a subsequent drop in user engagement.See it on page 15
05
Nexon’s growth strategy relies on long-lifecycle franchises like MapleStory, KartRider, and The Kingdom of the Winds, which utilize continuous updates to maintain engagement.See it on page 6
06
The company projects year-over-year growth across most global regions for Q4 2020 and plans to mitigate market dependency risks by diversifying its PC and mobile portfolio.See it on page 18

Summary

Nexon achieved record financial performance in the third quarter of 2020, generating ¥79.4 billion in revenue, representing a 52% year-over-year increase. This growth was primarily fueled by a 114% surge in Korean market revenue and a 140% expansion in mobile platform earnings. The company’s ability to leverage its deep intellectual property portfolio and maintain robust live operations proved essential in offsetting regional volatility, particularly in China, where performance suffered due to the postponement of the highly anticipated Mobile Dungeon&Fighter and a subsequent decline in user engagement.

While top-line revenue growth remained strong, net income experienced a 59% decline to ¥16.3 billion, a result of rising operating costs and unfavorable fluctuations in finance-related expenses. Despite this bottom-line pressure, the company remains committed to a long-term growth strategy centered on managing immersive, long-lifecycle online games. Iconic franchises such as MapleStory, KartRider, and The Kingdom of the Winds continue to serve as the foundation of this model, demonstrating the enduring value of titles that balance accessible design with continuous, iterative updates to sustain player engagement over decades.

Looking toward the future, the company maintains a positive outlook for the final quarter of 2020, projecting year-over-year growth across most global regions. To bolster shareholder value and reflect confidence in its long-term trajectory, the company has initiated a new capital allocation strategy, which includes a significant share repurchase program of up to ¥100 billion to be executed over the next three years. By diversifying its mobile and PC offerings, the company aims to stabilize its global footprint and mitigate the risks associated with individual market dependencies.