NEXON (3659) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached a record ¥446.2B, up 5% year-over-year, led by Dungeon & Fighter Mobile in China and The First Descendant global launch.

• Operating income declined 8% year-over-year to ¥124.2B due to increased investment in IP and talent.

• Net income surged 91% year-over-year to ¥134.8B, aided by FX gains and absence of prior year impairment losses.

• FY2025 will focus on strengthening top franchises, launching new titles, and continued investment in talent and IP.

• Shareholder returns increased: dividend doubled to ¥22.5/share in FY24, with a new buyback policy for FY25.

Financial highlights

• FY2024 revenue: ¥446.2B (+5% YoY); operating income: ¥124.2B (−8% YoY); net income: ¥134.8B (+91% YoY).

• Gross profit was ¥281.4B, with a gross margin of 63.1% for FY2024.

• Cash and cash equivalents at year-end: ¥331.9B; operating cash flow: ¥101.0B.

• Dividend per share for FY2024 was ¥22.5, with a payout ratio of 13.9%.

• Q4 2024 revenue: ¥79.7B (−6% YoY); operating loss: ¥1.7B (impacted by ¥7.0B impairment); net income: ¥32.0B (FX gain).

Outlook and guidance

• Q1 2025 revenue expected to rise 1.4–14% YoY (constant currency), led by Dungeon & Fighter Mobile and MapleStory.

• Operating income projected to increase YoY; net income to decrease due to lower FX gains.

• Key drivers for Q1 2025 include growth in Dungeon & Fighter and MapleStory, offset by declines in EA SPORTS FC™.

• Regional outlook: China and Japan to see revenue growth; Korea and Rest of World to decline; North America/Europe to increase.

• Major launches: The First Berserker: Khazan (Mar 28, 2025), Mabinogi Mobile (Mar 27, 2025).