Nexon Q3 2020 Earnings Results

Key insights

6 takeaways

01
Nexon achieved record Q3 2020 revenue of ¥79.4 billion, representing a 52% year-over-year increase driven by core franchises like MapleStory, Dungeon&Fighter, and KartRider.See it on page 1
02
Mobile game revenue surged 140% year-over-year, growing to represent 42% of total group revenue, while PC online games grew 20% to account for the remaining 58%.See it on page 1
03
Operating income reached a record ¥27.6 billion, though net income was negatively impacted by an ¥8.6 billion foreign exchange loss and a ¥3.0 billion impairment loss.See it on page 1
04
The company announced a new ¥100 billion share repurchase policy and continues to pursue an active investment strategy in global entertainment properties.See it on page 2
05
Nexon was added to the Nikkei 225 index and appointed Kevin A. Mayer to the Board of Directors to support international expansion efforts.See it on page 2
06
Management projects continued growth for Q4 2020, forecasting year-over-year revenue increases between 23% and 33%.See it on page 1

Summary

Nexon’s third-quarter 2020 financial results demonstrate record-breaking performance, characterized by significant revenue growth and a successful strategic pivot toward mobile platforms. The company achieved total group revenues of ¥79.4 billion, a 52% year-over-year increase, driven by the strength of core franchises such as MapleStory, Dungeon&Fighter, and KartRider. This growth underscores the effectiveness of the company’s focus on maintaining fewer but larger, high-impact virtual worlds across global markets.

Key financial highlights include a 140% year-over-year surge in mobile game revenues, which now account for 42% of the total group revenue. PC online games contributed the remaining 58%, reflecting a 20% year-over-year increase. While operating income reached a record ¥27.6 billion—a 13% increase over the previous year—net income was impacted by an ¥8.6 billion foreign exchange loss related to U.S. dollar-denominated cash deposits and a ¥3.0 billion impairment loss. Despite these factors, the company remains financially robust, supported by a new ¥100 billion share repurchase policy and an active investment strategy in global entertainment properties.

The company’s operational scope remains global, with over 60 live games available in more than 190 countries. Strategic developments during this period included the addition of the company to the Nikkei 225 index and the nomination of Kevin A. Mayer to the Board of Directors to bolster international expansion efforts. Looking ahead to the fourth quarter of 2020, the company maintains a positive outlook, projecting continued year-over-year revenue growth between 23% and 33%, supported by a strong pipeline of new content and platform expansions.