Nexon Releases Earnings for Second Quarter 2022

Key insights

6 takeaways

01
Nexon reported Q2 2022 group revenues of ¥84.1 billion, a 50% year-over-year increase, with operating income rising 47% to ¥22.7 billion.See it on page 1
02
Net income surged 176% to ¥24.7 billion, driven largely by foreign exchange gains on U.S. dollar-denominated cash holdings.See it on page 1
03
Growth was anchored by core franchises, including a 38% revenue increase for MapleStory in Korea and more than doubled revenues for FIFA ONLINE 4.See it on page 1
04
The board of directors approved a new three-year, ¥100 billion share repurchase program to be completed by August 2025.See it on page 2
05
Nexon projects continued momentum for Q3 2022, forecasting year-over-year revenue growth between 27% and 37%.See it on page 1
06
Geographic performance was strong across China, North America, Europe, and the Rest of World, while Japan experienced a slight revenue decline of 1%.See it on page 2

Summary

Nexon’s financial results for the second quarter of 2022 demonstrate a period of record-breaking growth, characterized by strong performance across its core virtual world franchises. The company reported group revenues of ¥84.1 billion, representing a 50% year-over-year increase on an as-reported basis. Operating income rose by 47% to ¥22.7 billion, while net income surged by 176% to ¥24.7 billion, bolstered significantly by foreign exchange gains on U.S. dollar-denominated cash holdings.

This growth was primarily driven by the robust performance of key titles, including the Dungeon&Fighter franchise in China and Korea, as well as MapleStory and FIFA ONLINE 4 in Korea. MapleStory saw a 38% revenue increase in Korea, while FIFA ONLINE 4 revenues more than doubled compared to the previous year. These results underscore the company’s strategy of leveraging live operations to maintain engagement and revenue stability across its global portfolio, which spans over 190 countries.

Geographically, the company experienced significant revenue gains in China, North America, Europe, and the Rest of World, while Japan saw a marginal decline of 1%. Following the successful completion of a previous share buy-back program, the board of directors approved a new three-year, ¥100 billion share repurchase policy to be executed by August 2025. Looking ahead to the third quarter of 2022, the company maintains a positive outlook, projecting continued revenue growth between 27% and 37% year-over-year, supported by ongoing development and the resilience of its established game franchises against broader macroeconomic pressures.