Nexon Releases Earnings for Second Quarter 2024

Key insights

7 takeaways

01
Nexon reported record Q2 2024 revenue of ¥122.5 billion, a 30% year-over-year increase, with operating income rising 64% to ¥45.2 billion.See it on page 1
02
The launch of Dungeon&Fighter Mobile in China was a primary growth driver, helping more than double the franchise's total revenue and maintaining a top-grossing position on China’s iOS chart for over 11 weeks.See it on page 1
03
The new title The First Descendant achieved top-seller status on Steam following its July 2 launch, showing strong traction in North American and console markets.See it on page 2
04
Aggregate revenue across Nexon's three major pillars—Dungeon&Fighter, MapleStory, and the FC series—grew by 57% year-over-year.See it on page 2
05
Nexon projects continued growth for Q3 2024, forecasting a 15% to 26% year-over-year revenue increase.See it on page 2
06
The company is expanding its Chinese market presence through partnerships with Tencent to localize titles including The Finals and Arc Raiders.See it on page 2
07
Nexon executed ¥30 billion in share repurchases between May and July 2024 and committed to an additional ¥70 billion in buybacks by February 2027.See it on page 2

Summary

Nexon reported record-breaking financial results for the second quarter of 2024, ending June 30, driven by the successful launch of Dungeon&Fighter Mobile in China and the strong global performance of new intellectual property. The company achieved quarterly revenue of ¥122.5 billion, representing a 30% year-over-year increase on an as-reported basis. Operating income rose 64% to ¥45.2 billion, while net income reached ¥39.9 billion, a 63% increase compared to the same period in 2023. These results exceeded the company’s initial outlook, bolstered by significant revenue outperformance and favorable foreign exchange gains.

The growth was largely attributed to the IP Growth Initiative, which focuses on extending established franchises and developing new, enduring titles. The Dungeon&Fighter franchise saw its revenues more than double year-over-year, with the mobile version maintaining the top-grossing position on China’s iOS chart for over 11 weeks. Additionally, the new title The First Descendant achieved top-seller status on Steam shortly after its July 2 launch, with a player base heavily concentrated in North America and on console platforms. Other key franchises, including MapleStory and the FC series, contributed to a 57% aggregate revenue growth across the company's three major pillars.

Nexon maintains a global operational footprint, managing over 45 live games across 190 countries. Looking ahead to the third quarter of 2024, the company projects continued revenue growth between 15% and 26% year-over-year. Strategic efforts remain focused on expanding market reach, including agreements with Tencent to customize titles like The Finals and Arc Raiders for the Chinese market. Furthermore, the company continues to prioritize shareholder returns, having executed ¥30 billion in share repurchases between May and July, with plans to complete an additional ¥70 billion by February 2027.