Nexon's net income for the first quarter increased by 118%, reaching $360.7 million

Image credit: Nexon

Nexon revealed impressive performance for the first quarter, with net income soaring by 118% compared to the previous year, fueled by a ¥14.5 billion ($91.4 million) gain from foreign exchange. This financial success was largely driven by notable performances from Arc Raiders, developed by Embark Studios, and the MapleStory series.

Sales of Arc Raiders surged, with 4.6 million more units sold this quarter, accumulating total sales of 16 million. Notably, more than half of the game's active players invested over 100 hours each, totaling 1.5 billion hours of gameplay.

Financial Performance

Revenue: ¥152.2 billion ($959.9 million), marking a 34% rise year-over-year
Operating Income: ¥58.2 billion ($367 million), a 40% increase over the previous year
Net Income: ¥57.2 billion ($360.7 million), representing a 118% escalation year-over-year

The leading revenue generators for Nexon in the first quarter were its flagship franchises, MapleStory, Dungeon & Fighter, and FC, which collectively brought in ¥92.9 billion ($586.1 million). While MapleStory and FC experienced growth, Dungeon & Fighter Mobile saw a downturn.

Horizontal revenue saw a significant boost, climbing 188% to ¥59.3 billion ($374.1 million), powered by the enduring success of Arc Raiders. Revenue for The Finals also grew by 47% compared to the same period last year.

MapleStory accounted for a 42% rise in revenue, primarily driven by titles such as MapleStory: Idle RPG and MapleStory Worlds. However, the company accounted for a ¥6.7 billion ($42.2 million) loss due to refunds for MapleStory: Idle RPG, following a coding error affecting certain paid items' statistical values. Operating income also decreased by ¥3.5 billion ($22 million) as a result.

Nexon cancelled three projects in the first quarter but redirected investment to Nakwon: Last Paradise and Woochi the Wayfarer. The company expressed that it is reallocating its creative resources to projects with a strong potential to engage a global audience.

The company is currently developing 15 new games and experiences, including five set to launch this year, like Overwatch for PC and Dungeon & Fighter: Idle RPG. Embark Studios has initiated two new projects in their early phases.

Additionally, Nexon transitioned the development of Dungeon & Fighter Mobile's Chinese service to Tencent, aiming for more nuanced localization and enhanced player engagement. Neople Studio remains in charge of creative aspects as it collaborates with Tencent.

Furthermore, the two firms announced a decade-long extension of their publishing agreement for the PC version of Dungeon & Fighter in China.

Looking forward, Nexon projects their revenue to range from ¥107 billion ($674.9 million) to ¥119.7 billion ($755 million), reflecting a 10% decrease. Expected operating income ranges from ¥16.1 billion ($101.5 million) to ¥25.3 billion ($159.6 million), indicating a 57% drop. The forecast considers expected downturns in Dungeon & Fighter and Mabinogi Mobile due to comparison with the prosperous launch of Q2 2025, balanced against continuous growth from MapleStory and Arc Raiders.