Nexon Q4 2019 Investor Presentation

Key insights

7 takeaways

01
China remains Nexon's largest market, accounting for 45% of total annual revenue in 2019.See it on page 18
02
Nexon expects a year-over-year revenue decline in early 2020 due to the maturation of mobile titles and the divestment of its browser-based business segment.See it on page 48
03
The mobile title V4 was a primary revenue catalyst in Q4 2019, validating the company's strategic pivot toward cross-platform development.See it on page 4
04
Core franchises MapleStory and FIFA ONLINE 4 continue to drive financial performance despite net income impacts from foreign exchange headwinds and asset impairments.See it on page 4
05
The company completed a ¥30 billion share repurchase program and reintroduced dividends as part of a disciplined capital allocation strategy.See it on page 30
06
Future growth is heavily reliant on the upcoming release of Dungeon&Fighter 2D Mobile and the continued expansion of the company's mobile footprint.See it on page 6
07
Nexon maintains a stable global workforce of approximately 6,400 employees to manage operations across its key markets.See it on page 34

Summary

Nexon’s financial performance during the fourth quarter of 2019 demonstrates the resilience of its core intellectual property portfolio, anchored by the sustained success of major franchises such as MapleStory and FIFA ONLINE 4. While the company navigated significant foreign exchange headwinds and impairment losses on foreign assets that impacted net income, constant-currency metrics reveal underlying growth. The successful launch of the mobile title V4 served as a critical catalyst for revenue, underscoring the company’s strategic shift toward cross-platform development and the expansion of its mobile footprint.

Geographically, the company maintains a concentrated operational base in Korea, which serves as the primary engine for recent growth. However, China remains the most significant market, contributing 45% of total annual revenue. Despite this, the outlook for early 2020 suggests a period of transition, with projected year-over-year revenue declines across major regions. This anticipated deceleration is attributed to the maturation of key mobile titles and the strategic divestment of the browser-based business segment, which historically accounted for a portion of the company’s PC-centric revenue model.

Looking forward, the company is prioritizing long-term value creation through a robust development pipeline, highlighted by the highly anticipated release of Dungeon&Fighter 2D Mobile. Management remains committed to balancing aggressive investment in new content with disciplined capital allocation, as evidenced by the completion of a ¥30 billion share repurchase program and the reintroduction of dividends. By leveraging a stable global workforce of approximately 6,400 employees, the company aims to mitigate short-term regional volatility while positioning its flagship franchises for sustained relevance in an evolving global gaming landscape.