NEXON Co., Ltd. Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (Q1 2025 vs Q1 2024)
  • Total Revenue: JPY 113.9 billion, up 5% YoY (9% on constant currency basis).
  • Operating Income: JPY 41.6 billion, up 43% YoY; exceeded expectations due to better-than-expected performance from core franchises and lower-than-planned marketing and HR costs.
  • Net Income: JPY 26.3 billion, down 27% YoY due to FX losses (JPY 4.2 billion in 2025 vs FX gain of JPY 10.7 billion in 2024) and an impairment loss of JPY 1.6 billion.
Franchise Performance
  • Dungeon&Fighter: Revenue increased 60% YoY—driven by strong PC growth in Korea (achieved record high quarterly revenue) and launch of Khazan. Mobile revenue in China was below expectations due to weaker-than-anticipated DAUs. Significant turnaround from Q4 2024.
  • MapleStory: Total revenue up 8% YoY. Korean PC version up 43% YoY due to successful winter update. Western markets saw 35% revenue growth YoY. Global revenue slightly down due to tough comparison with record Q1 2024.
  • FC Franchise: Declined YoY but exceeded expectations for FC ONLINE. FC MOBILE underperformed.
  • MABINOGI MOBILE: Launched March 27 in Korea; exceeded expectations. Ranked #1 most popular and #3 highest grossing game on Android, and #1 grossing on iOS in launch window.

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Takanori Kawai: [Interpreted] Hello, everyone, and welcome to NEXON's earnings conference call. Thank you for joining us today. With me are Junghun Lee, President and CEO of NEXON; and Shiro Uemura, CFO. Today's call will contain forward-looking statements, including statements about our results of operation and financial condition such as revenues attributable to our key titles, growth prospects, including, with respect to the online games industry, our ability to compete effectively, adapt to new technologies and address new technical challenges, our use of intellectual property and other statements that are not historical facts. These statements represent our predictions, projections and expectations about future events, which we believe are reasonable or based on reasonable assumptions. However, numerous risks and uncertainties could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Information on some of these risks and uncertainties can be found in our earnings-related IR documents. We assume no obligation to update or alter any forward-looking statements. Please note, net income refers to net income attributable to owners of the parent, as stated in NEXON's consolidated financial results. Furthermore, this conference call is intended to provide investors and analysts with financial and operational information about NEXON, not to solicit or recommend any sale or purchase of stock or other securities of NEXON. A

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