Nexon Fourth Quarter and Full-Year 2022 Financial Results

Key insights

6 takeaways

01
Nexon achieved record full-year 2022 revenue of ¥353.7 billion, a 29% year-over-year increase, driven by strong performances from FIFA ONLINE 4, Dungeon&Fighter Mobile, HIT2, and MapleStory.See it on page 1
02
Fourth-quarter 2022 revenue reached ¥81.1 billion, representing a 49% year-over-year increase, with notable regional growth of 62% in Korea.See it on page 1
03
Full-year net income declined 13% to ¥100.3 billion due to 2021 tax benefit comparisons and investment valuation losses, while the fourth quarter recorded a ¥7.9 billion net loss stemming from foreign exchange losses on U.S. dollar holdings.See it on page 1
04
The company projects continued momentum for the first quarter of 2023, forecasting year-over-year revenue growth between 28% and 38%.See it on page 1
05
Strategic growth initiatives for 2023 include the global expansion of KartRider: Drift and the testing of new titles such as THE FINALS.See it on page 2
06
Nexon is executing a significant share repurchase program as part of its ongoing capital allocation strategy to enhance shareholder value.See it on page 2

Summary

Nexon reported record-breaking financial performance for the fourth quarter and full fiscal year of 2022, underscoring the resilience of its virtual world business model. For the full year, the company achieved revenue of ¥353.7 billion, representing a 29% year-over-year increase. The fourth quarter was particularly strong, with revenue reaching ¥81.1 billion, a 49% increase compared to the same period in the previous year. This growth was primarily driven by the robust performance of major franchises, including FIFA ONLINE 4, Dungeon&Fighter Mobile, HIT2, and MapleStory.

Geographically, the company experienced significant momentum in Korea, where fourth-quarter revenue rose 62% year-over-year, and in China, where Dungeon&Fighter saw a successful turnaround with increased active player engagement. While Japan also posted growth, revenue in North America and Europe saw a slight decline. Despite these gains, net income for the full year decreased by 13% to ¥100.3 billion, largely due to unfavorable comparisons with 2021 tax benefits and valuation losses on investment assets. The fourth quarter specifically recorded a net loss of ¥7.9 billion, attributed to foreign exchange losses on U.S. dollar-denominated cash holdings.

Looking ahead, the company maintains a positive outlook, projecting year-over-year revenue growth of 28% to 38% for the first quarter of 2023. Strategic priorities include the global expansion of KartRider: Drift, the testing of new titles such as THE FINALS, and the continued development of several virtual world projects. Furthermore, the company remains committed to its capital allocation strategy, having executed a significant portion of its authorized share repurchase program to enhance shareholder value.