Nexon's third-quarter revenue sees an increase driven by Dungeon & Fighter Mobile
Nexon has announced its Q3 earnings, reporting an increase in revenue compared to the previous year, although there was a decline in net income.
Financial Overview
In the quarter ending on September 30, 2024, the company indicated the following figures:
- Revenue: ¥135.6 billion ($874 million), marking a rise of 12.7% from the previous year
- Net income: ¥27 billion ($174 million), a decrease of 23% compared to the same period last year
Key Insights
Despite a growth in revenue for the third quarter, Nexon noted that actual revenue fell "slightly below" expectations, largely attributed to adverse foreign exchange effects.
Revenue from games such as Dungeon & Fighter Mobile and The First Descendant contributed to the positive trend. However, this was balanced by reduced earnings from the PC version of Dungeon & Fighter, along with MapleStory and Wars of Prasia, all of which saw stronger performance in the preceding year.
The growth of Dungeon & Fighter Mobile was largely driven by its introduction in China last May. This release resulted in a significant 142% annual growth for the franchise.
Breaking down the revenue, the PC sector contributed ¥70 billion ($452 million) and saw an 18% year-on-year decrease. Meanwhile, the mobile segment earned ¥64 billion ($413 million), showcasing an impressive 89% increase from Q3 FY24.
CEO Junghun Lee stated: "The third quarter reinforced our confidence in Nexon's growth strategy. Over the next few quarters, we plan to continue investing in our long-term vision to achieve step-change growth in our revenue and operating income by strengthening existing franchises and growing our IP portfolio. This may temporarily impact the pace of our financial growth, but we know from our experience that this is a necessary step to create the next wave of dynamic growth."
