Nexon Q3 2022 Investor Presentation

Key insights

6 takeaways

01
Nexon generated ¥97.5 billion in revenue in Q3 2022, representing a 28% year-over-year increase.See it on page 12
02
Mobile revenue grew by 67% during Q3 2022, now accounting for 32% of the company's total earnings.See it on page 10
03
Core franchises including Dungeon&Fighter, MapleStory, and FIFA ONLINE 4 remain the primary drivers of financial stability and growth.See it on page 5
04
The launch of HIT2 and the performance of PC-to-mobile titles were the primary catalysts for the company's mobile segment expansion.See it on page 3
05
Nexon maintains a positive outlook for Q4 2022, projecting continued year-over-year revenue growth across most global regions.See it on page 16
06
The company’s business model focuses on long-term live operations to ensure existing virtual worlds remain profitable over extended lifecycles.See it on page 47

Summary

Nexon achieved record-breaking financial results in the third quarter of 2022, generating ¥97.5 billion in revenue. This 28% year-over-year increase underscores the efficacy of the company’s long-term business model, which relies on the durability of established virtual worlds. Core franchises such as Dungeon&Fighter, MapleStory, and FIFA ONLINE 4 continue to serve as the primary engines for growth, consistently delivering substantial life-to-date revenue. These foundational assets provide the financial stability necessary to support ongoing investments in new intellectual property and advanced gaming technologies.

The company’s strategic pivot toward mobile platforms has yielded significant returns, with mobile revenue surging 67% during this period to account for 32% of total earnings. This growth was bolstered by the successful launch of HIT2 and the sustained performance of key PC-to-mobile titles. While the Korean market remains the primary driver of these gains, the company maintains a global outlook, projecting continued year-over-year revenue growth across most regions for the final quarter of 2022. This expansion is supported by a disciplined approach to live operations, which ensures that existing titles remain relevant and profitable over extended lifecycles.

Nexon operates under the thesis that virtual worlds represent a unique asset class capable of sustained, long-term expansion that transcends typical industry volatility. By prioritizing platform diversification and leveraging its best-in-class live service capabilities, the company has strengthened its cash reserves and net asset position. This robust financial foundation positions the firm to navigate forward-looking uncertainties while continuing to scale its portfolio of interactive entertainment. The current trajectory reflects a successful transition toward a more mobile-centric, technologically advanced gaming ecosystem.