Nexon Announces Growth Strategy at Capital Markets Briefing 2024
Introduces IP Growth Initiative for Expansion of Established Franchises and All-New Games
Aspires to Increase Revenue and Operating Income to ¥750 Billion and ¥250 Billion Respectively by 2027
Over 33% of Prior-Year Operating Income to be Returned to Shareholders, Plus Double the Semi-Annual Dividend in 2H 2024
Minimum ROE Target of 10% with Potential to Grow to 15%
“Nexon’s highly advanced Live Game Operations capability has provided steady, if non-linear growth for the past thirty years,” said
“Today’s briefing is designed to help our investors understand how Nexon aspires to grow our annual revenue to ¥750 billion and operating income to ¥250 billion by 2027,” said
IP Growth Initiative
Nexon’s new, IP Growth Initiative is a strategy for creating vertical growth by revitalizing and extending established blockbusters such as Dungeon&Fighter and MapleStory with new content, on new platforms, and in new markets. The strategy includes hyperlocalization, a concept that recognizes the cultural differences between markets and deploys teams customize content to match the unique player preferences in each region.
Additionally, horizontal growth initiatives will focus on developing new blockbusters from other Nexon games and franchises like Mabinogi, plus new games in development such as ARC Raiders.
Financial Targets 2023-2027:
- Nexon’s growth plan aspires to grow annual revenue at a CAGR2 of 15% from ¥423 billion in 2023 to ¥750 billion by 2027 with a minimum of double-digit annual revenue growth.
- The plan is expected to grow Nexon’s operating income from ¥135 billion in 2023 to ¥250 billion by 2027, representing a CAGR2 of 17%.
- Three major franchises – Dungeon&Fighter, MapleStory, and FC – are expected to deliver a collective CAGR2 of 15% and grow aggregate revenues from ¥301 billion in 2023 to ¥530 billion by 2027.
- The target revenue for the rest of Nexon’s portfolio, including new games in development, is ¥220 billion in 2027.
New Shareholder Return Policy
-
Nexon established a new policy of returning over 33% of operating income1 from the prior year to shareholders to be deployed with dividends and share buybacks. This includes the ¥70 billion balance of the three-year ¥100 billion share repurchase policy announced in
February 2024 . - Additionally, the Board of Directors authorized doubling the semi-annual dividend of ¥7.5 to ¥15 in 2H 2024.
- Nexon also set a minimum ROE target of 10% with the potential to grow as high as 15%.
New Game Demos
The investor briefing included demos of three new games that reflect company’s IP Growth Initiative:
The First Berserker: Khazan
To highlight vertical extensions on established IP, Myeonjin Yun, the CEO of Nexon’s
MapleStory Universe
To further illustrate extensions on established IP,
ARC Raiders
To highlight the potential of all-new IP,
This press release is prepared to offer reference information about Nexon to investors and is intended to generally provide investors and analysts with financial and operational information about Nexon, but not to solicit or recommend any sale or purchase of stock or other securities of Nexon.
About
Founded in 1994,
1 Excluding one-off expenses such as impairment loss
2 Compound Annual Growth Rate
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903646618/en/
CorporatePR.Team@nexon.co.jp
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