Nexon's First-Half Revenue Increases; Announces Year-to-Date Projection; Commences 25 Billion Yen Stock Repurchase Plan
Nexon Co., Ltd., a leading online game developer and publisher, has reported a decline in profitability for the second quarter of 2025, primarily due to significant foreign exchange (FX) losses. Despite strong revenue growth in core game franchises like MapleStory and Dungeon & Fighter, the company's net income dropped 58% year-over-year.
The Q2 2025 revenue was ¥118.9 billion, slightly down 3% year-over-year on a reported basis but up 6% on a constant-currency basis. This resilience was driven by revitalized momentum in key titles and successful new game launches like MABINOGI MOBILE and MapleStory Worlds. Operating income was ¥37.7 billion, exceeding expectations but still down 17% year-over-year due to these FX impacts and increased operating costs.
Nexon's net income for the quarter dropped to ¥17.3 billion, a steep decline linked to FX losses and the associated hedging challenges amid currency fluctuations. A 1 JPY/USD move was estimated to affect Q3 revenue by ¥0.83 billion, underscoring ongoing currency risk.
In response to the earnings decline, Nexon has announced an aggressive share buyback program. The company's Board has approved a share buyback program of up to 11 million shares, representing 1.4% of outstanding shares, with a maximum acquisition value of ¥25 billion. This buyback will take place between 14 August and 31 October 2025 on the Tokyo Stock Exchange.
Despite the challenges, Nexon remains optimistic about future revenue expectations. The company anticipates continued revenue growth from key franchises such as Dungeon & Fighter (PC), MapleStory, and Mabinogi Mobile. They are also looking forward to the October 30 release of ARC Raiders, which is highly anticipated on Steam globally.
Nexon aims to broaden its international footprint and continue leveraging live operations and development to stimulate both vertical growth in existing franchises and horizontal growth with new games across new platforms and regions. However, FX risk remains a critical challenge that Nexon needs to manage carefully to sustain profitability improvements going forward.
For the first half of 2025, Nexon reported a 0.8% increase in revenue to ¥232.8 billion. The operating profit increased by 6.6% to ¥79.3 billion for the same period. Profit before tax fell by 41.6% to ¥67.5 billion. Operating cash flow surged to ¥88.1 billion, driven by reduced receivables and strong core earnings.
Nexon's total assets increased to ¥1.275 trillion, with equity attributable to owners of the parent rising to ¥1.042 trillion. Cash and cash equivalents are ¥386.4 billion. However, total comprehensive income fell significantly to ¥86.7 billion, primarily due to a foreign exchange loss of ¥21.6 billion.
In conclusion, while Nexon Co., Ltd. faced challenges in Q2 2025 due to foreign exchange losses, the company is taking proactive steps to stabilize earnings and is optimistic about future growth prospects, particularly with the upcoming release of ARC Raiders and continued focus on expanding its core franchises.
Business challenges, primarily due to significant foreign exchange losses, impacted Nexon's finance sector in Q2 2025, causing a 58% year-over-year drop in net income. Despite resilient revenue growth in key franchises like MapleStory and Dungeon & Fighter, the company is addressing this issue by launching an aggressive share buyback program, aiming to manage currency risk more effectively for future profitability improvements.
