Nexon Unveils Global Growth Strategy in Japanese Capital Market Briefing
Nexon has announced its ambition to achieve annual sales of 7 trillion won within three years. The company plans to fully commit to releasing new titles based on existing popular IPs (intellectual properties) and to growing IPs that will become next-generation franchises.
On the 3rd, at a capital market briefing held in Tokyo, Japan, Nexon CEO Lee Jung-heon stated, "Nexon has steadily grown its sales and operating profit non-linearly over the past 30 years, and this year we are also heading toward record-high sales and operating profit."
He added, "Nexon’s goal is to become a company that owns an ecosystem of more blockbuster-level IPs by simultaneously pursuing a vertical expansion strategy that grows blockbuster-level IPs over a long period and a horizontal expansion strategy that nurtures next-generation blockbuster-level IPs."
As core IPs leading the vertical expansion strategy, he cited Dungeon & Fighter, MapleStory, and FC. Among these, new titles based on the Dungeon & Fighter IP will be continuously released until 2027. Currently, First Berserker: Kazan, Overkill, and Project DW are awaiting launch.
For the horizontal expansion strategy, the plan is to develop the two IPs, Mabinogi and Blue Archive, into next-generation blockbuster franchises. CEO Lee said, "The Mabinogi IP, which has built recognition globally for over 20 years, is planned to be expanded as an IP to follow Dungeon & Fighter and MapleStory. Many companies try to enter the subculture genre, but it is indeed difficult. Nexon will not hesitate to invest in acquiring know-how in specific genres such as subculture, as it did with the success of Blue Archive."
He continued, "We aim to become a company that holds multiple ecosystems of blockbuster-level IP franchises by further strengthening our valuable partnership with Tencent. Dungeon & Fighter Mobile was only released in China in May 2024 and has since become the most successful mobile game in Chinese history. We believe there are many lucrative fruits within reach just by extending our hand to these IPs."
On the same day, CEO Lee also revealed financial targets based on the success of each IP. The combined annual growth rate target for sales of Nexon’s three major franchises?Dungeon & Fighter, MapleStory, and FC IP?is approximately 15%, with plans to grow the total sales of these three IPs to about 530 billion yen by 2027.
A new shareholder return policy aimed at enhancing shareholder value was also disclosed. The target return on equity (ROE) is set at a minimum of 10% and up to 15%, with plans to return more than 33% of the previous year’s operating profit to shareholders. Dividends will also be doubled, with a semi-annual dividend of 15 yen per share to be paid in the second half of 2024.
CEO Lee concluded, "Over the past 30 years, Nexon has achieved steady growth based on advanced live operation capabilities. Building on this, we will once again lay the foundation for a major leap through our IP growth strategy and do our best to provide more users worldwide with unique and enjoyable experiences that only Nexon can offer."
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