NEXON Q3 2024 Investor Presentation

Key insights

6 takeaways

01
Nexon achieved record Q3 2024 revenue of ¥135.6 billion, a 13% year-over-year increase driven by a 138% surge in Chinese revenue and an 89% rise in mobile earnings following the launch of the mobile version of Dungeon&Fighter.See it on page 7
02
Operating income grew 11% to ¥51.5 billion, though net income fell 23% to ¥27.0 billion due to ¥19.6 billion in foreign exchange losses, higher finance costs, and increased taxes.See it on page 29
03
To offset net income volatility and maintain investor confidence, Nexon is doubling its dividend forecast and launching a ¥20 billion share repurchase program.See it on page 19
04
Growth in North American, European, and Japanese markets was bolstered by the new title The First Descendant, even as the company experienced a downturn in the domestic Korean market.See it on page 16
05
Future financial performance faces pressure from rising human resource expenditures and impairment losses associated with project terminations.See it on page 17
06
Nexon’s 2025 growth strategy relies on major content updates for established franchises like MapleStory and KartRider, alongside the upcoming launches of The First Berserker: Khazan and ARC Raiders.See it on page 2

Summary

Nexon achieved record financial results in the third quarter of 2024, generating ¥135.6 billion in revenue, which represents a 13% year-over-year increase. This growth was primarily fueled by a 138% surge in Chinese revenue and an 89% rise in mobile platform earnings, largely attributed to the successful launch of the mobile version of Dungeon&Fighter. Operating income also saw positive momentum, climbing 11% to reach ¥51.5 billion. However, net income experienced a 23% decline to ¥27.0 billion, a result of significant foreign exchange losses totaling ¥19.6 billion, alongside increased finance costs and tax expenses.

The company’s performance reflects a strategic balance between established, long-term franchises and new global releases. While core titles such as MapleStory, KartRider, and The Kingdom of the Winds continue to anchor the portfolio with multi-billion dollar lifetime revenues, newer entries like The First Descendant have successfully driven substantial growth across North American, European, and Japanese markets. Despite these gains, the domestic Korean market faced a downturn, and the company expects future financial pressure from impairment losses related to project terminations and rising human resource expenditures.

Looking toward the 2025 fiscal year, the company intends to sustain its growth trajectory through major content updates for its core franchises and the highly anticipated launches of The First Berserker: Khazan and ARC Raiders. To bolster investor confidence despite the volatility in net income, the company has committed to an enhanced shareholder return policy, which includes doubling the dividend forecast and initiating a new ¥20 billion share repurchase program. These measures underscore a focus on long-term stability and value creation as the company navigates shifting global market demands and rising operational costs.