Nexon Releases Earnings for Third Quarter 2025

Core Insights - Nexon reported strong financial results for Q3 2025, with a revenue of ¥118.7 billion, reflecting a 12% year-over-year decline on an as-reported basis, but a 9% decline on a constant-currency basis [5] - The MapleStory franchise achieved a remarkable 61% year-over-year revenue growth in Q3, and is projected to reach a 40% year-over-year growth for the full year 2025, marking its highest annual revenue in 22 years [2][4] - The new IP, ARC Raiders, launched on October 30, 2025, has sold over 4 million units and maintained the 1 position on Steam's Top Sellers list, indicating a successful debut [5][20] Financial Performance - Q3 revenue was ¥118.7 billion, down 12% year-over-year; operating income was ¥37.5 billion, down 27% year-over-year; net income increased by 41% to ¥38.2 billion, primarily due to a foreign exchange gain [5][10] - The board of directors approved a doubling of the year-end dividend to ¥30 per share, reflecting confidence in cash generation from existing franchises and new games [3][10] - A share buyback of ¥25 billion is set to commence, with a total of ¥75 billion completed to date under a ¥100 billion buyback policy [16] Franchise Highlights - The Dungeon&Fighter franchise saw a 72% year-over-year revenue growth for the PC version, while the mobile version's revenue declined by 45% year-over-year due to the upcoming launch in 2024 [10] - FC ONLINE revenue increased year-over-year in Q3, driven by successful updates, and is expected to continue growing in Q4 [8] - MapleStory: Idle RPG launched globally on November 6, 2025, and is anticipated to contribute significantly to Q4 revenue [10] Market Expansion and Future Outlook - Nexon plans to expand its presence in China through partnerships, including an Open Beta for THE FINALS starting November 18 [5] - A fully hyperlocalized adaptation of MABINOGI MOBILE is scheduled for release in Japan in 2026, indicating ongoing efforts to cater to local markets [5] - The company expects Q4 revenue to range from ¥115.8 billion to ¥129.3 billion, representing a year-over-year growth of 45% to 62% on an as-reported basis [16]