NEXON (3659) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 revenue of JPY 118.9 billion (up 6% constant currency) and operating income of JPY 37.7 billion, both exceeding guidance, driven by strong growth in MapleStory, Dungeon & Fighter (PC), and Mabinogi Mobile.

• Year-over-year, revenue declined 3% as reported but grew 6% on a constant currency basis; operating income fell 70% as reported and 10% on a constant currency basis.

• Net income fell sharply due to a JPY 17.5 billion FX loss, despite robust franchise engagement and record metrics in Korea and China.

• Completed a JPY 50 billion share repurchase and authorized an additional JPY 25 billion buyback, reflecting confidence in future performance.

• New launches and live operations drove record engagement, especially in Korea and global markets.

Financial highlights

• Q2 2025 revenue: JPY 118.9 billion (down 3% YoY as reported, up 6% constant currency); operating income: JPY 37.7 billion (down 17% YoY as reported, down 10% constant currency); net income: JPY 16.8 billion, down 58% YoY due to FX loss.

• Q1–Q2 2025 accumulated revenue was JPY 232.8 billion, up 0.8% year-over-year; operating profit: JPY 79.3 billion (up 6.6%).

• MapleStory franchise revenue up 60% YoY; Dungeon & Fighter (PC) up 67% YoY; Mabinogi Mobile exceeded outlook.

• Korea led growth with revenue up 60% YoY; China revenue declined 49% due to Dungeon & Fighter Mobile.

• Basic earnings per share: JPY 53.04 (down from JPY 90.44 YoY); total assets as of June 30, 2025: JPY 1,275,121 million.

Outlook and guidance

• Q3 2025 revenue expected between JPY 116.6–127.1 billion, a 14–6% YoY decrease as reported; operating income forecasted at JPY 32.7–41.2 billion, a 36–20% YoY decrease.

• Net income for Q3 projected at JPY 26.4–32.8 billion, a 2% decrease to 21% increase YoY.

• For the nine months ending September 30, 2025, revenue is forecast at JPY 349.4–359.9 billion (down 4.7%–1.8% YoY), with operating profit of JPY 112.0–120.5 billion.

• Q3 expects double-digit growth in Dungeon & Fighter (PC) and MapleStory, with moderation in Mabinogi Mobile and overall revenue decline due to prior year launches.

• Anticipated cost increases in royalties, platform fees, and marketing, partially offset by lower HR costs.