NEXON (3659) Q1 2025 earnings summary

Executive summary

• Q1 revenue grew 5.1% year-over-year to JPY 113.9 billion, with operating income up 43% to JPY 41.6 billion, driven by strong performances from Dungeon & Fighter, MapleStory, and Mabinogi Mobile, and record results in Korea.

• Net income declined 27% year-over-year to JPY 26.3 billion, mainly due to a JPY 4.2 billion FX loss and impairment charges.

• New games Khazan and Mabinogi Mobile launched successfully, with Mabinogi Mobile topping charts in Korea and both receiving positive feedback.

• Strategic partnerships, especially with Tencent, are expanding content and market reach, notably in China.

• Maintains a robust cash position of approximately JPY 600 billion, supporting stability and future growth.

Financial highlights

• Q1 revenue: JPY 113.9 billion (up 5.1% year-over-year); operating income: JPY 41.6 billion (up 43%); net income: JPY 26.3 billion (down 27%).

• Earnings per share: JPY 32.12, down from JPY 42.77 year-over-year.

• Gross profit increased to JPY 74.7 billion from JPY 67.9 billion year-over-year.

• Cash and cash equivalents rose to JPY 340.9 billion, up from JPY 244.2 billion a year earlier.

• Net cash provided by operating activities was JPY 49.3 billion, up from JPY 12.2 billion year-over-year.

Outlook and guidance

• Q2 revenue expected at JPY 99.6–110.3 billion, a 19–10% decrease as-reported or 9% decrease to 1% increase constant currency year-over-year.

• Q2 operating income guidance: JPY 22.5–31.1 billion, a 31% decrease as-reported year-over-year.

• Net income guidance: JPY 16.8–23.3 billion, a 58–42% decrease as-reported year-over-year.

• For the six months ending June 30, 2025, revenue is forecasted at JPY 213.6–224.2 billion (down 7.5–2.9% year-over-year), with operating profit of JPY 64.1–72.7 billion (down 13.8–2.3%).

• FX expected to negatively impact Q2 revenue by about 10%.