Nexon Fourth Quarter and Full Year 2020 Financial Results

Key insights

7 takeaways

01
Nexon achieved record-setting 2020 financial results with ¥293.0 billion in revenue and ¥111.5 billion in operating income, both marking an 18% year-over-year increase.See it on page 2
02
The mobile gaming segment grew 60% year-over-year, contributing approximately one-third of the company's total annual revenue.See it on page 1
03
Operations in Korea remained the primary financial driver, accounting for 56% of total annual revenue.See it on page 1
04
The 17-year-old MapleStory franchise demonstrated significant longevity, recording a 98% year-over-year revenue increase in the Korean market.See it on page 1
05
Nexon invested ¥92.4 billion into publicly traded global entertainment companies as part of its broader corporate strategy.See it on page 2
06
Despite strong operational performance, annual net income was negatively impacted by non-operating factors, specifically deferred tax liabilities and foreign exchange losses from the appreciation of the Korean Won.See it on page 1
07
Management projects continued revenue growth for Q1 2021, supported by the planned introduction of new titles like DNF Duel.See it on page 1

Summary

Nexon’s financial results for the fourth quarter and full year of 2020 demonstrate a period of record-setting growth, driven by the sustained popularity of long-standing virtual world franchises and a successful expansion into mobile gaming. For the full year, the company achieved revenues of ¥293.0 billion and operating income of ¥111.5 billion, representing year-over-year increases of 18% in both categories. This performance was largely bolstered by operations in Korea, which accounted for 56% of total annual revenue.

The company’s mobile segment served as a significant growth engine, with mobile game revenues rising 60% year-over-year to account for approximately one-third of total annual group revenue. Simultaneously, established PC titles continued to show remarkable longevity; notably, the MapleStory franchise achieved a 98% year-over-year revenue increase in Korea, 17 years after its initial launch. While fourth-quarter revenue reached ¥66.4 billion—exceeding internal outlooks—net income for the year was impacted by non-operating factors, including deferred tax liabilities and foreign exchange losses related to the appreciation of the Korean Won.

Nexon’s strategic focus remains on the development and operation of online games across more than 190 countries. Beyond its core operations, the company has committed ¥92.4 billion to investments in publicly traded global entertainment companies. Looking ahead to the first quarter of 2021, management maintains a positive outlook, anticipating continued revenue growth and the introduction of new titles, such as the recently announced DNF Duel, to further diversify its portfolio across new platforms and markets.