Nexon, a domestic game company, announced that its revenue for the first half of the year surpassed 2 trillion won, driven by the strong performance of its flagship game intellectual property (IP) 'Dungeon & Fighter', 'MapleStory', and the new release 'Mabinogi Mobile'. This is the largest performance ever for the first half on a semi-annual basis. Although the second quarter's results dipped compared to the same period last year, they exceeded market expectations.
Nexon's quarterly revenue exceeded 1 trillion won in both the first and second quarters, and if it maintains a similar trend in the second half, it has a high likelihood of entering the annual revenue '4 trillion club' this year. Nexon plans to secure new IPs and accelerate its global market strategy, starting with the new release 'Ark Raiders' in the second half. Regarding concerns raised about the dispute over performance bonuses with the union of its subsidiary Neople, which developed 'Dungeon & Fighter', it emphasized that there would be "no impact on the third quarter's performance."
◇ Dungeon & Fighter and MapleStory drive performance
Nexon Japan announced on the 13th that its consolidated revenue for the second quarter was 118.9 billion yen (approximately 1.1494 trillion won), a 3% decrease compared to the same period last year. Operating profit for the same period was 37.7 billion yen (approximately 364.6 billion won), down 17%. Both revenue and operating profit exceeded market expectations. Net income dropped 58% to 16.8 billion yen (approximately 162.1 billion won).
Nexon appears to have faced a poor performance in the second quarter due to the impact of the 'base effect' (a phenomenon in which indicators appear lower or higher than reality depending on the reference point for comparison). Last year's second quarter recorded the largest performance ever due to the success of 'Dungeon & Fighter Mobile' in China, but this year, due to a lack of explosive growth compared to one year ago, revenue and operating profit were relatively sluggish.
For the first half of this year (January to June), cumulative revenue was 232.8 billion yen (approximately 2.231 trillion won), a 1% increase compared to the same period last year. This is the largest revenue ever for a semi-annual basis. Operating profit increased by 7% to 79.3 billion yen (approximately 760.1 billion won) for the same period.
The solid performance of core PC titles such as 'MapleStory', 'Dungeon & Fighter', and 'FC Online', along with the success of the new title 'Mabinogi Mobile', drove the strong performance in the first half.
According to Nexon, its major titles 'MapleStory' and 'Dungeon & Fighter' recorded double-digit growth in the second quarter. Notably, the domestic revenue of 'MapleStory' increased by 91% compared to the same period last year. The new content and extensive system improvements garnered positive responses from users, resulting in the largest ever PC room market share. A Nexon official said, "Thanks to this trend, the domestic revenue of MapleStory is expected to double compared to the same period last year in the third quarter."
For the PC version of 'Dungeon & Fighter', significant growth was seen in Korea and China, with revenue increasing by 67% compared to the same period last year. 'FC Online' also experienced revenue growth compared to the previous year, thanks to the effects of an event celebrating its 7th anniversary.
Among the new releases, 'Mabinogi Mobile' has exceeded expectations, boosting mobile revenue. Released in March, 'Mabinogi Mobile' has surpassed 1.95 million cumulative subscribers, primarily among teenagers and those in their 20s.
◇ Starting with the new release 'Ark Raiders' in October, speed up IP expansion
Nexon plans to accelerate IP expansion in the second half, starting with the new release 'Ark Raiders', scheduled for release in October. It is also expected to unveil a new mobile title based on the MapleStory IP called 'Maple Growing' within the year. They will also target the Chinese market with 'The Finals'.
In addition, various new titles are in development, including the action RPG 'Vindictus: Defying Fate', the zombie apocalypse survival game 'Paradise: Last Paradise', and the action-adventure new title 'UCHI: The Wayfarer' from NEXON GAMES.
Lee Jeong-heon, the head of Nexon Japan, said during a conference call following the earnings announcement, "We will solidify Nexon's position in the global market in the second half, based on the revival of core titles and a diverse lineup of new releases." He added that "especially, the upcoming release 'Ark Raiders' on October 30 is gathering expectations, ranking 6th on the Steam wishlist."
Regarding the ongoing conflict with the union of its subsidiary Neople, which has been on strike for two months now, he stated, "We are in negotiations and are doing our best to ensure that there are no disruptions to game services." He added, "There will likely be no impact on the third quarter's performance."
The Neople union began its strike on June 25 in protest of the performance bonus system and work intensity. They are particularly demanding improvements to the performance bonus (GI) system of 'Dungeon & Fighter Mobile' and the high-intensity labor conditions.