Nexon H1 Revenue Edges Up; Issues YTD Outlook; Launches 25 Bln Yen Share Buyback

(RTTNews) - Nexon Co., Ltd. (7NX.F), on Wednesday, announced its consolidated financial results for the six months ended 30 June 2025, reporting modest revenue growth but a sharp decline in profitability due to foreign exchange losses and increased operating costs.

Revenue rose slightly to ¥232.8 billion, up 0.8% year-over-year, while operating profit increased 6.6% to ¥79.3 billion. However, profit before tax fell 41.6% to ¥67.5 billion, and profit attributable to owners of the parent dropped 43.2% to ¥43.0 billion. Basic earnings per share declined to ¥53.04 from ¥90.44 in the prior-year period.

Total comprehensive income also fell significantly to ¥86.7 billion, down from ¥149.9 billion in H1 2024. The decline was primarily driven by a foreign exchange loss of ¥21.6 billion, compared to a gain in the previous year. Despite this, Nexon's total assets increased to ¥1.275 trillion, and equity attributable to owners of the parent rose to ¥1.042 trillion, maintaining a strong equity ratio of 81.7%.

Cash and cash equivalents increased to ¥386.4 billion, up ¥54.4 billion from year-end 2024. Operating cash flow surged to ¥88.1 billion, driven by reduced receivables and strong core earnings. Investing activities generated ¥49.7 billion in net cash, while financing activities used ¥70.8 billion, largely due to ¥56.2 billion in treasury share purchases.

Looking ahead, Nexon expects nine-month revenue to range between ¥349.4 billion and ¥359.9 billion, down 4.7% to 1.8% year-over-year. Operating profit is forecast between ¥112.0 billion and ¥120.5 billion, and profit attributable to owners of the parent is expected to fall between ¥69.4 billion and ¥75.8 billion.

The company anticipates continued strength from key franchises such as Dungeon & Fighter (PC), MapleStory, and Mabinogi Mobile, while acknowledging a year-over-year decline in revenue from Dungeon & Fighter Mobile due to last year's launch in China.

In addition, Nexon's Board 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. The buyback will take place between 14 August and 31 October 2025 on the Tokyo Stock Exchange.

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