Nexon Earnings for Third Quarter 2021

Key insights

6 takeaways

01
Nexon reported Q3 2021 net income of ¥37.9 billion, a 132% increase year-over-year, alongside an 8% rise in operating income to ¥29.8 billion.See it on page 1
02
Group revenue for Q3 2021 was ¥75.9 billion, representing a 4% year-over-year decline.See it on page 2
03
The Dungeon&Fighter franchise in China saw a 45% revenue increase, while the Sudden Attack title in Korea grew by over 200% year-over-year.See it on page 2
04
Nexon plans to launch Mobile Dungeon&Fighter in Korea in Q1 2022 and release KartRider: Drift globally across PC, console, and mobile platforms.See it on page 1
05
Embark Studios is currently developing three new projects, including a virtual world codenamed Pioneer that utilizes proprietary machine learning and procedural content tools.See it on page 2
06
Performance gains in China and Korea offset revenue declines in Japan, where results were negatively impacted by older mobile titles.See it on page 2

Summary

Nexon’s financial results for the third quarter of 2021 demonstrate a period of operational resilience and strategic growth, characterized by strong performance in key franchises despite a slight year-over-year revenue decline. The company reported group revenues of ¥75.9 billion, a 4% decrease as-reported compared to the same period in 2020. However, operating income rose by 8% to ¥29.8 billion, and net income surged by 132% to ¥37.9 billion, both exceeding the company’s internal outlook.

The company’s performance was bolstered by significant improvements in its core titles. In China, revenue for the Dungeon&Fighter franchise increased by 45% as-reported, driven by creative team changes and successful promotional packages. Meanwhile, the Korean market saw strong results from MapleStory, which experienced sequential growth in player satisfaction metrics, and Sudden Attack, which grew by over 200% year-over-year. These gains helped offset revenue decreases in Japan, where performance was impacted by declines in older mobile titles.

Looking ahead, Nexon is positioning itself for a robust 2022 by focusing on a pipeline of new releases and platform expansions. Key catalysts include the scheduled launch of Mobile Dungeon&Fighter in Korea in the first quarter of 2022 and the global release of KartRider: Drift across PC, console, and mobile platforms. Additionally, the company’s Embark Studios in Sweden is developing three new projects, including a virtual world codenamed Pioneer, which utilizes proprietary machine learning and procedural content tools. While the company maintains a cautious outlook for the fourth quarter of 2021, it continues to leverage its extensive portfolio of over 50 live games to maintain its position as a global leader in virtual worlds.