Nexon has announced impressive first-quarter results, showing a 118% increase in net income compared to the previous year, thanks in part to a ¥14.5 billion ($91.4 million) gain from foreign exchange.
The company has achieved its best quarterly performance to date, driven by the ongoing success of Embark Studios’ Arc Raiders and the MapleStory franchise.
Arc Raiders saw an additional 4.6 million units sold during the quarter, bringing total sales to 16 million. Nexon also revealed that over half of active players spent more than 100 hours playing, totaling 1.5 billion hours of gameplay.
The financials
- Revenue: ¥152.2 billion ($959.9 million, a 34% increase year-over-year)
- Operating income: ¥58.2 billion ($367 million, a 40% increase year-over-year)
- Net income: ¥57.2 billion ($360.7 million, up 118% year-over-year)
The key points
Nexon’s core franchises – MapleStory, Dungeon & Fighter, and FC – delivered consistent revenue in the first quarter, amounting to ¥92.9 billion ($586.1 million). While MapleStory and FC saw growth, Dungeon & Fighter Mobile experienced a decline.
Horizontal revenues surged by 188% to ¥59.3 billion ($374.1 million), largely driven by the enduring popularity of Arc Raiders. Revenue from The Finals also saw a 47% increase year-over-year.
The MapleStory franchise saw a 42% revenue increase compared to the previous year, driven by titles like MapleStory: Idle RPG and MapleStory Worlds.
Nexon’s revenue was impacted by a ¥6.7 billion ($42.2 million) deduction due to refunds related to MapleStory: Idle RPG following a coding error earlier in the year. Operating income also took a hit, with a ¥3.5 billion ($22 million) reduction linked to these refunds.
During the first quarter, Nexon canceled three projects but allocated additional funding to Nakwon: Last Paradise and Woochi the Wayfarer. The company emphasized the strategic redeployment of creative talent to projects with global appeal.
Nexon currently has 15 games and experiences in development, with five slated for release this year, including Overwatch on PC, Project T, and Dungeon & Fighter: Idle RPG. Embark Studios is also working on two new games in the early stages of development.
Additionally, Nexon announced the transfer of development of the China service for Dungeon & Fighter Mobile to Tencent for enhanced localization and player engagement. Neople Studio will maintain creative control during the co-development process with Tencent.
Both companies extended their publishing partnership for Dungeon & Fighter on PC in China for another ten years.
Looking ahead, Nexon anticipates revenue between ¥107 billion ($674.9 million) and ¥119.7 billion ($755 million), reflecting a 10% decrease. Operating income is forecasted to be between ¥16.1 billion ($101.5 million) and ¥25.3 billion ($159.6 million), marking a 57% decline.
The outlook includes projected revenue declines in the Dungeon & Fighter and Mabinogi Mobile franchises, offset by anticipated growth in the MapleStory franchise and Arc Raiders.