Nexon Q4 2022 Investor Presentation

Key insights

6 takeaways

01
Nexon reported record 2022 annual revenue of ¥353.7 billion, representing a 29 percent year-over-year increase.See it on page 14
02
Revenue is heavily concentrated in the Korean market (63 percent) and PC platforms (69 percent).See it on page 9
03
Growth is driven by the sustained performance of core franchises including Dungeon&Fighter, MapleStory, and FIFA ONLINE 4, alongside the launch of mobile title HIT2.See it on page 3
04
The company is expanding its workforce to over 7,400 employees to support the development of new multiplatform titles like The Finals and Warhaven.See it on page 44
05
Nexon projects record-breaking revenue for Q1 2023, bolstered by the release of KartRider: Drift and the continued strength of its legacy portfolio.See it on page 3
06
Operating expenses are expected to rise in 2023 due to increased royalty fees, intensified marketing investments, and higher human resource expenditures.See it on page 19

Summary

Nexon achieved record financial performance in 2022, reporting annual revenue of ¥353.7 billion, a 29 percent year-over-year increase. This growth is primarily attributed to the sustained success of long-running franchises such as Dungeon&Fighter, MapleStory, and FIFA ONLINE 4, complemented by the successful launch of mobile titles like HIT2. The company’s business model centers on maintaining these established virtual worlds through robust live operations, which provide a stable foundation for long-term revenue generation despite broader market volatility.

The company maintains a strong geographic and platform concentration, with 63 percent of revenue derived from the Korean market and 69 percent generated through PC platforms. To support its expansion strategy, Nexon has grown its workforce to over 7,400 employees, focusing on both the maintenance of core intellectual properties and the development of new multiplatform titles. Looking toward 2023, the company anticipates continued momentum, projecting record-breaking revenues for the first quarter driven by the release of KartRider: Drift and the ongoing performance of its core portfolio.

Future growth initiatives involve layering new titles, including The Finals and Warhaven, onto the existing foundation of high-revenue franchises. While the company expects significant top-line growth in the coming year, it also projects an increase in operating expenses. These costs are primarily driven by higher royalty fees, intensified marketing investments, and rising human resource expenditures necessary to support ongoing development and global expansion efforts. By balancing the stability of its legacy titles with a pipeline of new, multiplatform releases, the company aims to solidify its position in both domestic and Western markets.