Nexon Earnings for Third Quarter 2023

Key insights

7 takeaways

01
Nexon achieved its sixth consecutive quarter of double-digit growth, with Q3 2023 revenue reaching ¥120.3 billion (up 23% YoY) and operating income rising 47% to ¥46.3 billion.See it on page 1
02
Performance was anchored by record-breaking quarterly revenue from MapleStory and FC ONLINE in Korea, alongside a 22% YoY revenue increase in China.See it on page 2
03
Junghun Lee is set to succeed Owen Mahoney as CEO in March 2024 as part of a strategic leadership transition.See it on page 3
04
The company accelerated its capital return strategy, shortening the timeline for a ¥100 billion share repurchase program to 1.5 years.See it on page 2
05
Growth was bolstered by the successful launch of DAVE THE DIVER and strong international performance from Blue Archive.See it on page 2
06
Future growth is supported by a development pipeline featuring THE FINALS and The First Descendant, both of which completed successful open-beta testing.See it on page 2
07
Nexon projects continued momentum for Q4 2023, forecasting revenue growth between 8% and 19% year-over-year.See it on page 1

Summary

Nexon’s third-quarter 2023 financial results demonstrate robust growth, marking the company’s sixth consecutive quarter of double-digit year-over-year revenue increases. The primary thesis of the report centers on the company’s transition toward a new generation of leadership and its strategic focus on scaling existing franchises while preparing for a pipeline of new titles. Total group revenue reached ¥120.3 billion, a 23% increase year-over-year, while operating income rose by 47% to ¥46.3 billion, both exceeding company outlooks.

Performance was driven by strong engagement in Korea, where MapleStory and FC ONLINE achieved record-breaking quarterly revenue, alongside the successful international performance of Blue Archive and the launch of new titles like DAVE THE DIVER. In China, revenue grew 22% year-over-year, bolstered by the introduction of localized versions of established franchises. The company also reported significant progress in its development pipeline, specifically noting the successful open-beta testing of THE FINALS and The First Descendant, both of which are positioned to drive future growth.

Geographically, the company maintains a global footprint with over 50 live games across more than 190 countries. In addition to operational success, the board accelerated its share repurchase plan, shortening the timeline for a ¥100 billion buyback to 1.5 years. Looking ahead, the company announced a leadership transition, with Junghun Lee nominated to succeed current CEO Owen Mahoney in March 2024. The fourth-quarter outlook remains positive, with projected revenue growth between 8% and 19% year-over-year, reflecting continued confidence in the company’s current portfolio and upcoming releases.