Nexon Earnings for Second Quarter 2020

Key insights

7 takeaways

01
Nexon reported Q2 2020 group revenues of ¥64.5 billion, a 20% year-over-year increase, with operating income reaching ¥26.7 billion.See it on page 1
02
The company projects strong Q3 2020 growth, forecasting revenue increases between 48% and 63% year-over-year.See it on page 3
03
Nexon has authorized a $1.5 billion investment fund to acquire stakes in global entertainment companies to support long-term IP sustainability.See it on page 2
04
Strategic mobile expansion is a primary focus, with the goal of having five major franchises available as PC-quality mobile games by the end of 2020.See it on page 1
05
The upcoming release of Mobile Dungeon&Fighter in China has generated significant momentum, securing 60 million pre-registered players.See it on page 2
06
Net income for Q2 2020 was ¥19.8 billion, missing expectations due to foreign exchange losses on U.S. dollar-denominated cash holdings.See it on page 3
07
Global expansion efforts include the international release of V4 and a partnership with Electronic Arts to launch FIFA Mobile in Japan.See it on page 2

Summary

Nexon’s financial results for the second quarter of 2020 demonstrate a period of record-breaking growth, driven primarily by the strong performance of its core franchises in the Korean market. The company reported group revenues of ¥64.5 billion, representing a 20% year-over-year increase, and operating income of ¥26.7 billion. This performance was bolstered by the success of titles such as MapleStory, Dungeon&Fighter, and Sudden Attack, alongside the early mobile adoption of KartRider Rush+. While net income reached ¥19.8 billion, it fell slightly below expectations due to foreign exchange losses related to U.S. dollar-denominated cash holdings.

The company’s strategic focus centers on a transition toward mobile platforms, aiming to have five of its major franchises available as PC-quality mobile games by the end of 2020. This shift is supported by the global launch of KartRider Rush+ and the highly anticipated release of Mobile Dungeon&Fighter in China, which secured 60 million pre-registered players. Additionally, the company is expanding its global footprint through the international release of V4 and a partnership with Electronic Arts to bring FIFA Mobile to the Japanese market.

Nexon maintains a robust outlook for the third quarter of 2020, projecting significant year-over-year revenue growth between 48% and 63%. Beyond immediate game operations, the company has authorized a $1.5 billion investment fund to acquire stakes in global entertainment companies and has established joint ventures to develop new titles based on existing intellectual property. These initiatives reflect a broader commitment to long-term intellectual property sustainability and cross-platform expansion across its global portfolio of over 60 live games.