Nexon Earnings for Second Quarter 2023

Key insights

6 takeaways

01
Nexon achieved record-breaking Q2 2023 revenue of ¥94.4 billion, a 12% year-over-year increase, marking five consecutive quarters of double-digit topline growth.See it on page 1
02
Operating income rose 22% to ¥27.6 billion, though net income fell 7% to ¥24.5 billion due to a smaller foreign exchange gain compared to the previous year.See it on page 3
03
Korea drove regional performance with record revenue growth of 21% year-over-year, while North American and European markets saw a 5% decline.See it on page 2
04
Growth was fueled by core titles including FIFA ONLINE 4, FIFA MOBILE, Blue Archive, Wars of Prasia, and HIT2, alongside the successful launch of DAVE THE DIVER.See it on page 2
05
The board accelerated its share repurchase program, committing to buy back ¥20 billion in shares starting August 10, 2023, toward a ¥100 billion target by August 2024.See it on page 2
06
Management projects Q3 2023 revenue growth between 13% and 23% year-over-year, supported by franchise updates and new titles from Embark Studios.See it on page 2

Summary

Nexon reported strong financial performance for the second quarter of 2023, marking a fifth consecutive quarter of double-digit topline growth. The company achieved record-breaking quarterly revenue of ¥94.4 billion, representing a 12% increase year-over-year. Operating income also saw significant growth, rising 22% to ¥27.6 billion. While net income reached ¥24.5 billion, it reflected a 7% decrease compared to the previous year, largely due to a smaller foreign exchange gain relative to the prior period.

The company’s growth was primarily driven by the robust performance of its core titles, including FIFA ONLINE 4, FIFA MOBILE, Blue Archive, Wars of Prasia, and HIT2. Regionally, Korea served as a major contributor, achieving record-breaking revenue growth of 21% year-over-year. Other markets showed mixed results; Japan saw an 8% revenue increase, while North America and Europe experienced a 5% decline. The company also highlighted the successful launch of the indie-style title DAVE THE DIVER, which received critical acclaim on Steam.

In response to steady growth and favorable foreign exchange conditions, the board of directors authorized an acceleration of its existing share repurchase program. The company plans to complete its ¥100 billion repurchase target by August 2024, with an immediate commitment to buy back ¥20 billion in shares over a three-month period starting August 10, 2023. Looking ahead to the third quarter, management maintains a positive outlook, projecting continued revenue growth between 13% and 23% year-over-year, supported by ongoing updates to major franchises and the continued development of new titles from Embark Studios.