NEXON (3659) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 results, with revenues, operating income, and net income all exceeding outlook, driven by Dungeon & Fighter Mobile's China launch and strong IP performance.

• Three major franchises grew 57% year-over-year, led by Dungeon & Fighter Mobile; continued global expansion and new IP initiatives underway.

• Nexon is executing a dual strategy of expanding existing IPs and creating new ones, with The First Descendant showing early global success.

• IP Growth Initiative leverages established franchises and new IPs for expansion across platforms and markets.

Financial highlights

• Q2 2024 revenue rose 30% year-over-year to ¥122,474 million; mobile revenue up 125% and PC revenue down 13% year-over-year.

• Operating income increased 64% year-over-year to ¥45,224 million; net income up 63% to ¥39,878 million, including an ¥8.2 billion FX gain.

• Q2 2024 EPS was ¥47.66, up from ¥28.80 in Q2 2023.

• Q2 2024 accumulated revenue for H1 reached ¥230,892 million, up 6% year-over-year.

• Cash and cash equivalents at June 30, 2024, were ¥230,022 million, down from ¥280,515 million at year-end 2023.

Outlook and guidance

• Q3 2024 revenue expected at ¥137.8B–¥152.0B, up 15–26% year-over-year, driven by Dungeon & Fighter Mobile and The First Descendant.

• Q3 operating income and net income both expected to increase year-over-year, with higher performance-based bonuses and marketing costs.

• China revenue expected to more than double year-over-year in Q3, while Korea revenue is expected to decrease due to tough comparisons.

• Japan, North America, and Europe all forecast significant year-over-year revenue growth in Q3, benefiting from new launches.

• Revenue guidance for The First Descendant reflects deferral of over 50% of bookings.