Japanese gaming company Nexon Co. reported lower-than-expected fourth-quarter results while announcing a ¥100 billion (US$670 million) share buyback program as it seeks to boost investor confidence.
The Tokyo-listed company posted a ¥1.7 billion operating loss in the fourth quarter, dragged down by a one-time impairment charge of ¥7 billion. Revenue fell 6% to ¥79.7 billion, missing company forecasts as key franchises underperformed expectations.
Despite the quarterly setback, Nexon achieved record full-year revenue of ¥446.2 billion in 2024, up 5% from the previous year. The company’s three largest franchises – MapleStory, Dungeon&Fighter, and FC – grew 10% collectively to represent 74% of total revenue.
Looking to revitalize growth, Nexon announced a co-development agreement with Tencent for its Dungeon&Fighter franchise in China. The partnership aims to create more localized content after recent updates failed to meet expectations.
The company maintains an aggressive pipeline with seven new titles in development, each targeting annual revenue above ¥10 billion. These include ARC Raiders and NAKWON: LAST PARADISE.
“Our cash position exceeding ¥600 billion gives us confidence to simultaneously invest in growth while returning capital to shareholders,” said CEO Junghun Lee. The newly announced buyback includes ¥50 billion remaining from last year’s program.
For the first quarter of 2025, Nexon expects revenue between ¥109.9 billion and ¥122.1 billion, representing growth of 1% to 13% year-over-year.
