Nexon Releases Earnings for Third Quarter 2022

Key insights

7 takeaways

01
Nexon reported Q3 2022 revenue of ¥97.5 billion, a 28% year-over-year increase, putting the company on track for its highest annual revenue in 28 years.See it on page 1
02
Operating income rose 6% to ¥31.5 billion, while net income grew 14% to ¥43.3 billion, exceeding the company's initial expectations.See it on page 1
03
Performance was driven by a 56% revenue surge in Korea, fueled by a 47% increase in MapleStory revenue and record-high performance from FIFA ONLINE 4.See it on page 1
04
Nexon authorized a ¥50-billion share repurchase program to be executed through April 2023, signaling confidence in long-term financial stability.See it on page 2
05
The company projects Q4 2022 revenue growth between 39% and 54% year-over-year, supported by a portfolio of over 45 live games.See it on page 1
06
While China revenue declined 14% year-over-year, the company saw growth in Japan, North America, Europe, and the Rest of World.See it on page 2
07
The development pipeline includes upcoming titles such as KartRider: Drift, THE FINALS, and The First Descendant, targeting PC, mobile, and console platforms.See it on page 2

Summary

Nexon’s financial results for the third quarter of 2022 demonstrate significant growth, with the company tracking toward its highest annual revenue in its 28-year history. During the quarter ending September 30, 2022, group revenues reached ¥97.5 billion, representing a 28% year-over-year increase on an as-reported basis. Operating income rose 6% to ¥31.5 billion, while net income grew 14% to ¥43.3 billion, exceeding initial company expectations.

Performance was primarily driven by strong results in Korea, where quarterly revenues surged 56% year-over-year. Key contributors included the established MapleStory franchise, which saw a 47% revenue increase, and FIFA ONLINE 4, which achieved a record-high quarterly performance for the third consecutive period. Additionally, the launch of the mobile title HIT2 exceeded expectations, demonstrating high retention rates among core MMORPG players. While results in China saw a 14% year-over-year decline due to difficult comparisons with the previous year, other regions, including Japan, North America, Europe, and the Rest of World, reported revenue growth.

The company maintains a robust development pipeline for global distribution across PC, mobile, and console platforms, including upcoming titles such as KartRider: Drift, THE FINALS, and The First Descendant. Reflecting confidence in long-term stability and growth, the board of directors authorized a ¥50-billion share repurchase program to be executed through April 2023. Looking ahead to the fourth quarter, the company projects continued momentum with expected revenue growth between 39% and 54% year-over-year, supported by its diversified portfolio of over 45 live games operating across more than 190 countries.