Nexon reports "record-breaking revenue" in 2024 even though The First Descendant's performance fell "below expectations"
The company behind Maple Story, Nexon, has disclosed its financial results for the fiscal year 2024, achieving unprecedented revenue figures for a second straight year.
Financial Overview:
- Total Revenue: ¥446.2 billion ($2.94 billion), marking a 5% rise from the previous year
- Operating Profit: ¥124.2 billion ($817 million), an 8% decrease from last year
- Net Profit: ¥134.8 billion ($887 million), showing a 91% enhancement year-over-year
Key Insights:
Even though the revenue for the fourth quarter saw a 6% decline from the previous year, Nexon achieved record full-year revenue. The net profit jumped by 84%, a result influenced by increased foreign exchange gains on cash deposits and the absence of a specific impairment charge that was applied in 2023.
The company emphasized that reinforcing and expanding existing game franchises is pivotal to their mid-term strategy extending to 2027. The combined growth of its major series, namely MapleStory, Dungeon & Fighter, and FC, was 10%, advancing from ¥300.7 billion ($1.98 billion) in 2023 to ¥330.7 billion ($2.18 billion) in 2024. These franchises accounted for 74% of the revenue this past year, up from 71% in the previous one.
The release of "The First Descendant" did not meet expectations due to reduced engagement stemming from a lack of new content. However, Nexon noted that a Season 2 update introduced in December aided in improving user retention.
A collaborative development deal has been forged with Tencent to enhance the "Dungeon & Fighter" franchise within China. Through this partnership, Tencent will augment production capabilities for "hyperlocalization, innovative experiences, and game adaptations to match changing trends"—efforts designed to captivate a broad player base in the expansive Chinese gaming market.
Future Outlook:
Projections for Q1 2025 suggest a revenue increase ranging between 1% and 13% over the prior year.
Junghun Lee, Nexon’s president and CEO, remarked, "Our focus is on bolstering well-known franchises like Dungeon & Fighter to ensure ongoing growth and profitability after the record-setting 2024 revenue."
"The calculated expansion of our creative team, alongside a new joint development agreement with Tencent, will furnish the necessary resources to foster growth. We have seven new games slated for launch by 2027, each anticipated to potentially generate annual revenues surpassing ¥10 billion ($66 million). Our strategic planning, vision, and financial robustness are set to fuel substantial growth in the coming years."