NEXON Co., Ltd Q2 FY2024 Report Overview

NEXON Co., Ltd, a prominent global video game publisher and developer, continues to solidify its position as a leader in the online gaming industry. Founded in 1994 and headquartered in Tokyo, Japan, NEXON has built a robust portfolio of successful titles, including the globally renowned MMORPGs MapleStory and Dungeon Fighter Online. The company is known for its innovation in the free-to-play business model and for delivering engaging, high-quality games that attract millions of players worldwide.

Management and Leadership Goals for Q2 FY2024

Under the leadership of CEO Owen Mahoney, NEXON has continued to execute its long-term strategy of expanding its game portfolio while maintaining a strong focus on live game operations and player satisfaction. During Q2 FY2024, the management team prioritized the development of new titles and the enhancement of existing games through regular updates and events. The company’s leadership emphasized the importance of leveraging advanced technologies to improve the gaming experience and explore new growth opportunities in emerging markets.

Achievements for Q2 FY2024

One of the key achievements for NEXON during this quarter was the successful launch of new content updates for several of its flagship games. These updates not only retained existing players but also attracted new ones, resulting in increased player engagement and revenue growth. Additionally, NEXON made significant progress in its strategic partnerships and collaborations, which are expected to contribute to the company’s future growth.

Highlights and Metrics

In Q2 FY2024, NEXON reported significant financial growth across various metrics:

• Revenue: 122,474 million JPY, representing a 12.96% increase from 108,418 million JPY in Q1 FY2024 and a 29.69% increase from 94,436 million JPY in Q2 FY2023.
• Gross Profit: 78,287 million JPY, an increase of 15.36% compared to 67,861 million JPY in Q1 FY2024 and an increase of 27.02% compared to 61,632 million JPY in Q2 FY2023.
• Operating Income: 45,224 million JPY, up 55.16% from 26,146 million JPY in Q1 FY2024 and up 63.77% compared to 27,614 million JPY in Q2 FY2023.
• Profit: 39,388 million JPY, a 9.56% increase from 35,951 million JPY in Q1 FY2024 and a substantial 61.06% increase from 24,455 million JPY in Q2 FY2023.
• Earnings Per Share (EPS): Basic EPS was 47.66 JPY, and diluted EPS was 47.49 JPY.

Additionally, from May 15 to July 19, NEXON executed share repurchases totaling 30 billion JPY, with plans to repurchase an additional 70 billion JPY worth of shares by February 2027.

Sales by Region

In Q2 FY2024, NEXON’s revenue distribution was as follows:

• Japan: 4,556 million JPY
• Korea: 48,870 million JPY
• China: 56,340 million JPY
• North America and Europe: 7,044 million JPY
• Rest of World: 5,664 million JPY

The total consolidated revenue for the quarter amounted to 122,474 million JPY. This distribution highlights NEXON’s strong presence in China and Korea, which together accounted for the majority of the company’s revenue. The North American and European markets, while smaller, showed steady growth, reflecting NEXON’s ongoing efforts to expand its global reach. The company continues to focus on regional strategies that cater to the preferences and demands of local gamers, ensuring sustained growth across all key regions. Сomparison of indicators with previous periods can be found here.