NEXON (3659) Q2 2025 earnings summary

Executive summary

• Q2 2025 performance exceeded expectations, driven by strong growth in MapleStory, Dungeon & Fighter (PC), and Mabinogi Mobile, with new launches and live operations boosting engagement, especially in Korea and global markets.

• Revenue for the first half of 2025 rose 0.8% year-over-year to ¥232,784 million, with operating profit up 6.6%, but net profit fell sharply due to significant FX losses.

• Shareholder returns included a ¥50 billion share repurchase completed by June and an additional ¥25 billion buyback authorized, reflecting confidence in future performance.

Financial highlights

• Q2 2025 revenue reached ¥129.3 billion (up 6% constant currency), with PC/console up 62% and mobile down 43%; operating income was ¥37.7 billion, net income ¥16.8 billion, both impacted by a ¥17.5 billion FX loss.

• First half 2025 revenue: ¥232,784 million (up 0.8% YoY); operating profit: ¥79,309 million (up 6.6%); net profit: ¥43,030 million (down 43.2%).

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

• Net income margin and EPS were significantly impacted by FX losses.

Outlook and guidance

• Q3 2025 revenue expected between ¥116.6–127.1 billion, representing a 14–6% YoY decrease as reported; operating income forecasted at ¥32.7–41.2 billion, with net income projected at ¥26.4–32.8 billion.

• Double-digit growth anticipated in key titles like Dungeon & Fighter (PC) and MapleStory, but overall revenue to decline due to prior year launches and mobile performance.

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