Nexon Co. reported a 42.8% increase in first-quarter operating profit to ¥41.6 billion ($281 million), despite significant declines in pre-tax and net income. Revenue rose 5.1% to ¥113.9 billion as the Japanese game publisher benefited from strong performances across its key franchises.
The mixed results reflect gains from the company’s core franchises alongside financial headwinds. While operating profit surged, net income dropped 26.9% to ¥26.3 billion, primarily due to foreign exchange losses of ¥4.2 billion this quarter compared to forex gains in the previous year.
CEO Jung-hun Lee cited recovery in flagship titles Dungeon&Fighter and MapleStory, alongside contributions from newly launched games The First Berserker: Khazan and MABINOGI MOBILE. The company’s partnership with Tencent continues to progress, with pre-registration opening for Nexon titles in China and planned release of co-developed content later this year.
The Dungeon&Fighter franchise saw 60% year-over-year growth in Q1, while MapleStory franchise revenue increased 8%. The mobile version of MABINOGI significantly exceeded expectations after its March launch in Korea, reaching the top positions in Android and iOS rankings.
Despite these gains, Nexon forecasts a challenging second quarter with revenue projected to decline 2.9-7.5% year-over-year. The company maintains a strong financial foundation with approximately ¥600 billion in cash reserves and continues its ¥50 billion share repurchase program.
