Nexon posts "record-breaking revenue" in 2024 despite The First Descendant performing "below expectations"

Maple Story publisher Nexon has released its 2024 fiscal year earnings report, posting record-breaking revenue for the second consecutive year.

The Numbers:

Revenue: ¥446.2 billion ($2.94 billion), up 5% year-over-year Operating income: ¥124.2 billion ($817 million), down 8% year-over-year Net income: ¥134.8 billion ($887 million), up 91% year-over-year

The Highlights:

Whilst Q4 revenue was down 6% year-over-year, Nexon "delivered record-breaking full-year revenue.". Net income was up 84%, although Nexon attributes that to an increased FX gain on cash deposits and "an impairment charge recorded in 2023 on investment in an equity-method company," which was not repeated in 2024.

The firm reiterated that strengthening and extending established franchises remains a key focus for reaching its 2027 mid-term plan, with its three largest franchises – MapleStory, Dungeon & Fighter, and FC – growing in aggregate by 10% from ¥300.7 billion ($1.98 billion) in 2023 to ¥330.7 billion ($2.18 billion) in 2024, and represented 74% of its 2024 revenue versus 71% in 2023.

Shooter The First Descendant came in "below expectations [...] due to a decline in traffic attributable to lack of fresh content." However, Nexon said the Season 2 Update released in December "improved retention."

Nexon has secured a co-development agreement with Tencent to bring "additional creative resources" for the development of its Dungeon & Fighter Franchise in China. Under the agreement, Tencent will provide additional production capacity for "hyperlocalization, creating new experiences, and adapting the game to meet evolving trends – strategies aimed at attracting a wide range of players in China’s large game market."

Looking ahead

Nexon expects revenue across Q1 2025 to increase by 1% to 13% year-over-year.

"Following record-breaking revenue in 2024, Nexon is committed to strengthening established franchises like Dungeon&Fighter for sustained growth and profitability," said Junghun Lee, president and CEO of Nexon.

"A disciplined increase in our own creative force, plus a new co-development agreement with Tencent, will provide the resources needed to drive growth. Additionally, seven new games scheduled for launch by 2027, each have potential to generate annual revenue over ¥10 billion ($66 million). We have the vision, plan, and balance sheet to drive significant growth in the years ahead."