Nexon Earnings for Fourth Quarter and Full Year 2019

Key insights

6 takeaways

01
Nexon reported 2019 full-year revenues of ¥248.5 billion, representing a 4% increase on a constant currency basis.See it on page 2
02
MapleStory and MapleStoryM achieved double-digit growth for the sixth and third consecutive years, respectively, while FIFA ONLINE 4 reached its highest annual revenue to date.See it on page 1
03
The company is addressing a decline in Dungeon&Fighter performance in China with content updates and the upcoming Dungeon&Fighter 2D Mobile, which has secured over 16 million pre-registrations.See it on page 2
04
Nexon is shifting its operational strategy to prioritize fewer, larger-scale titles that leverage cross-platform integration and mobile accessibility.See it on page 1
05
The company maintains a portfolio of over 60 live titles across 190 countries, with a Q1 2020 revenue projection between ¥74.0 and ¥80.7 billion.See it on page 3
06
Full-year 2019 operating and net income were impacted by impairment losses and foreign exchange fluctuations despite the growth of core franchises.See it on page 2

Summary

Nexon’s 2019 financial results demonstrate a strategic pivot toward high-quality, long-term intellectual property and cross-platform expansion. The company reported full-year revenues of ¥248.5 billion, reflecting a 4% increase on a constant currency basis despite a 2% decline in as-reported figures. While operating and net income faced volatility due to impairment losses and foreign exchange fluctuations, the core business remains anchored by the sustained growth of major franchises, particularly in the Korean market.

Key performance drivers included record-breaking revenue for MapleStory and MapleStoryM, which achieved double-digit growth for the sixth and third consecutive years, respectively. Additionally, FIFA ONLINE 4 reached its highest annual revenue to date, and the newly launched mobile and PC title V4 exceeded performance expectations. Conversely, the company experienced a soft performance for Dungeon&Fighter in China during the latter half of 2019, which management intends to address through upcoming content updates and the highly anticipated release of Dungeon&Fighter 2D Mobile, which has already garnered over 16 million pre-registrations.

Nexon’s operational strategy focuses on consolidating its portfolio to prioritize fewer, larger-scale games that leverage mobile accessibility and immersive online experiences. By capitalizing on the global adoption of powerful mobile devices, the company aims to expand its total addressable market. Looking ahead to the first quarter of 2020, the company maintains a cautious outlook, projecting revenue between ¥74.0 and ¥80.7 billion. The firm continues to operate over 60 live titles across 190 countries, emphasizing a commitment to long-term franchise development and cross-platform integration to drive future growth.