Nexon Fourth Quarter and Full-Year 2024 Financial Results

Key insights

7 takeaways

01
Nexon achieved record annual revenue of ¥446.2 billion in 2024, representing a 5% year-over-year increase.See it on page 2
02
Fourth-quarter revenue declined 6% to ¥79.7 billion, missing internal projections due to underperformance in the FC franchise and The First Descendant.See it on page 1
03
The company reported a ¥1.7 billion operating loss for Q4, primarily driven by a ¥7.0 billion one-time impairment charge.See it on page 1
04
Nexon’s core franchises—MapleStory, Dungeon&Fighter, and FC—accounted for 74% of total 2024 revenue.See it on page 2
05
The board authorized a ¥100 billion share buyback program to be executed over the next year, supported by over ¥600 billion in cash reserves.See it on page 1
06
Nexon is partnering with Tencent to co-develop and localize the Dungeon&Fighter franchise in China to drive growth.See it on page 2
07
The company is developing seven new titles, each with a target of exceeding ¥10 billion in annual revenue by 2027.See it on page 4

Summary

Nexon achieved record-breaking financial results for the 2024 fiscal year, reporting annual revenue of ¥446.2 billion, a 5% increase year-over-year. Despite this annual milestone, the fourth quarter saw a 6% revenue decline to ¥79.7 billion, falling short of internal projections due to underperformance in the FC franchise and The First Descendant. The company recorded an operating loss of ¥1.7 billion for the quarter, largely attributed to a one-time impairment charge of ¥7.0 billion, though net income reached ¥32.0 billion, bolstered by significant foreign exchange gains.

The company’s growth strategy centers on strengthening its core franchises—MapleStory, Dungeon&Fighter, and FC—which collectively accounted for 74% of 2024 revenue. To revitalize the Dungeon&Fighter franchise in China, Nexon has entered a co-development agreement with Tencent to enhance localization and creative output. Additionally, the company is diversifying its portfolio with a robust pipeline of seven new titles, each targeting over ¥10 billion in annual revenue by 2027. These efforts are supported by a strong balance sheet, with over ¥600 billion in cash reserves.

Reflecting confidence in its mid-term growth initiatives, the board of directors authorized a ¥100 billion share buyback program to be executed over the next year. Looking ahead to the first quarter of 2025, the company anticipates revenue growth between 1% and 13% year-over-year. Operations remain focused on balancing investments in established intellectual property with the development of new gaming experiences across PC, console, and mobile platforms globally.