NEXON proclaims strong Q1 efficiency, development technique By Investing.com

NEXON Co., Ltd. (3659.T), a worldwide chief in on-line video games, reported a robust first quarter in 2024, surpassing expectations with income of ¥108.4 billion, working revenue of ¥29.1 billion, and web revenue of ¥35.9 billion. Key highlights embody the advance of Dungeon&Fighter in China, regular engagement in MapleStory in Korea, and the anticipated launch of Dungeon&Fighter Cellular.

The corporate’s Q2 outlook is constructive, with new launches and sport updates within the pipeline. NEXON’s CEO Junghun Lee outlined a development technique specializing in a various IP portfolio and the objective of turning into a steady and stable firm by 2027.

Key Takeaways

• NEXON’s Q1 earnings exceeded expectations with vital income and web revenue.
• Dungeon&Fighter’s in-game financial system in China improved, with a content material replace deliberate for Q2.
• MapleStory in Korea maintained participant engagement, with Q2 income anticipated to be on par with the earlier 12 months.
• The discharge of Dungeon&Fighter Cellular in China is about for Could twenty first, aiming to spice up the franchise.
• NEXON’s Q2 might be bolstered by contributions from new and current video games, together with HIT2 in Japan and MapleStory Worlds in Korea.
• The corporate introduced a dividend improve and a considerable share repurchase program.
• Lengthy-term development technique emphasised, with a deal with strengthening and diversifying the IP portfolio.

Firm Outlook

• NEXON anticipates a robust Q2 with contributions from HIT2, THE FINALS, and MapleStory Worlds.
• The corporate goals to be a steady and stable entity by 2027, with a strong IP portfolio.

Bearish Highlights

• Challenges in balancing Dungeon&Fighter’s in-game financial system in China are being addressed.
• Weak point in Asian markets for The Finals, with restoration plans in collaboration with Embark Studios.

Bullish Highlights

• Constructive beta take a look at outcomes and excessive pre-bookings for Dungeon&Fighter Cellular in China.
• Excessive expectations for the upcoming sport Arc Raiders, a PVPVE shooter sport.
• Yr-over-year development for MapleStory PC exterior Korea and MapleStory M cell sport.

Misses

• Particular challenges or misses weren’t highlighted within the supplied abstract.

Q&A highlights

• NEXON’s CEO mentioned the significance of a various IP portfolio for long-term development.
• The corporate’s technique consists of increasing the MapleStory franchise and integrating associated organizations.

In abstract, NEXON’s first quarter of 2024 showcased a robust monetary efficiency and a strategic deal with increasing its IP portfolio. The corporate’s management is assured of their long-term development plans, aiming to construct a various and enduring set of video games that can safe NEXON’s place within the world market. With a number of promising titles on the horizon and a dedication to resolving present challenges, NEXON is poised to proceed its trajectory of success.

Full transcript – Nexon Co Ltd ADR (NEXOF) Q1 2024:

Operator: Good day everybody and welcome to NEXON’s 2024 First Quarter Earnings Convention Name. Right this moment’s name is being recorded. Presently, I might like to show the decision over to Takanori Kawai, Workforce Chief of Investor Relations. Please go forward, sir.

Takanori Kawai: Howdy everybody and welcome to NEXON’s earnings convention name. Thanks for becoming a member of us right this moment. With me are Junghun Lee, President and CEO of NEXON; and Shiro Uemura, CFO. Right this moment’s name will include forward-looking statements, together with statements about our outcomes of operation and monetary circumstances. Comparable to revenues attributable to our key titles, development prospects, together with with respect to the web video games business, our capacity to compete successfully, adapt to new applied sciences and handle new technical challenges, our use of mental property and different statements that aren’t historic info. These statements characterize our predictions, projections and expectations about future occasions, which we consider are cheap or based mostly on cheap assumptions. Nonetheless, quite a few dangers and uncertainties may trigger precise outcomes to vary materially from these expressed or implied within the forward-looking statements. Info on a few of these dangers and uncertainties may be present in our earnings-related IR paperwork. We assume no obligation to replace or alter any forward-looking statements. Please observe web revenue refers to web revenue attributable to homeowners of the father or mother as said in NEXON’s consolidated monetary outcomes. Moreover, this convention name is meant to supply traders and analysts with monetary and operational details about NEXON, to not solicit or advocate any sale or buy of inventory or different securities of NEXON. A recording of this convention name might be out there on our Investor Relations web site following this name. Unauthorized recording of this convention name will not be permitted. Now, I will move the decision to Junghun.

Junghun Lee: Good afternoon to everybody becoming a member of our name. My first, since being appointed CEO of NEXON in March, earlier than we take your questions, I wish to supply some perspective on our outcomes and outlook, together with our pleasure concerning the launch of Dungeon&Fighter Cellular in China on Could twenty first. As you learn within the earnings letter, we posted earlier right this moment, NEXON’s efficiency within the first quarter was higher than anticipated. Income got here in at ¥108.4 billion, pushed by sturdy efficiency in FC ONLINE, FC MOBILE in Blue Archive. Additionally, we made progress in enhancing the participant engagement of MapleStory in Korea whereas we’ve been sharply centered on enhancing the in-game financial system and have developed a long-term roadmap for re-energizing development in Dungeon&Fighter in China. Our better-than-expected income mixed with cautious administration of promoting and HR prices resulted in working revenue of ¥29.1 billion, and web revenue of ¥35.9 billion, each of which exceeded our expectations. In China, Dungeon&Fighter income got here in on the excessive finish of our steering, following an imbalance within the in-game financial system, which arose late in This fall. We have now been sharply centered on enhancing the sport’s financial system, with recognition that it’s going to take time to fully restore the stability and recuperate each income momentum and the variety of energetic gamers. Within the meantime, we’re planning a content material replace in Q2 and onward, which we count on will additional enhance the in-game financial system. MapleStory in Korea, our ongoing deal with enhancing participant satisfaction and engagement over monetization resorted in Q1 income barely beneath our forecast, however enabled us to count on Q2 income to return near the extent of the earlier 12 months, and to develop sequentially regardless of the standard weak seasonality in Q2. The most important occasion in Q2 is the Could twenty first launch of Dungeon&Fighter Cellular in China. Given the big recognition of this franchise and the present shortage of high quality motion cell video games in China, getting this sport into the palms of gamers has been a precedence. The latest profitable beta take a look at and the sturdy advertising and marketing marketing campaign deliberate by Tencent give us confidence that Dungeon&Fighter Cellular has the potential to energise our massive base of current gamers in China and produce new gamers to the franchise. Additionally, our outlook for Q2 consists of contributions from promising new titles like HIT2 in Japan, THE FINALS, and the official launch of MapleStory Worlds in Korea. Nonetheless, these are anticipated to be upset by weak spot in PC Dungeon&Fighter in China, in addition to year-over-year decreases from Wars of Prasia and FC ONLINE resulting from prime comparatives and following sturdy performances in Q2 2023. Subsequent, I’ll hand the decision over to Uemura-san to debate our monetary analysis and outlook in additional element.

Shiro Uemura: Thanks, Junghun. In Q1, we delivered stronger than anticipated outcomes pushed by FC ONLINE and FC MOBILE in addition to Blue Archive. Then again, income from THE FINALS was decrease than anticipated. Q1 working revenue was above our expectations. Along with the income of efficiency, HR prices, advertising and marketing bills, and cloud service prices had been decrease than anticipated. And Q1 community revenue was additionally above our outlook, primarily resulting from higher than anticipated working revenue and an FX acquire of ¥10.7 billion on money deposits. Trying forward, we count on group revenues in Q2 to be within the vary of ¥92.3 billion to ¥104.7 billion, representing a 2% lower to 11% improve on an as-reported foundation or a ten% lower to 2% improve on a continuing forex foundation year-over-year. We count on contributions from Dungeon&Fighter Cellular in China and different new video games to be offset by year-over-year decreases in PC Dungeon&Fighter in China, in addition to Wars of Prasia and FC ONLINE resulting from robust year-over-year comparisons in Q2 2023. For PC Dungeon&Fighter in China, though we’re sharply centered on enhancing the in-game financial system, additional changes are wanted and might be made within the months forward. Moreover, packaged merchandise gross sales of the Labor Day replace haven’t carried out properly in comparison with Q2 final 12 months. On-content updates in Q2 and onward are anticipated to additional enhance the in-game financial system. Then again, in Korea, our technique of prioritizing the advance of participant engagement and satisfaction in MapleStory delivers early good progress. Consequently, we now count on MapleStory’s Q2 income to extend quarter-over-quarter and return near year-ago ranges. We count on Q2 working revenue to be within the vary of ¥17.3 billion to ¥27.7 billion, representing a 37% lower to flat on an as-reported foundation, or 44% to 9% lower on a continuing forex foundation year-over-year. We anticipate larger HR prices primarily resulting from elevated headcount and annual wage hike. We additionally count on elevated cloud service prices and costs to creators in MapleStory Worlds in addition to a one-time loss that’s more likely to happen resulting from reorganization in Q2. Extra bills are anticipated to be partially offset by decrease royal — platform gateway charges and advertising and marketing prices. Accordingly, we count on Q2 web revenue to lower year-over-year. Lastly, I might like to supply an replace on our capital allocation. Right this moment, the Board of Administrators approved a ¥2.5 improve to the ¥5 semiannual dividend, which represents a per share dividend of JPY7.5 semi-annually or ¥15 yearly. Additionally, relating to our 3-year ¥100 billion share repurchase coverage, the Board of Administrators approved an execution of ¥30 billion share repurchase available in the market throughout the interval of Could 15 to July 19. Trying forward, we are going to proceed to worth alternatives to boost shareholder return. I’ll now return the decision over to Junghun.

Junghun Lee: Thanks, Uemura-san. I need to take a second to supply some perspective on the priorities I’ve set for my first months as NEXON’s CEO. A lot of the agenda for our first half of the 12 months was set in January with a well-defined set of challenges and alternatives. In latest weeks, a lot of my time has been sharply centered on two near-term initiatives, re-energizing Dungeon&Fighter in China and MapleStory in Korea, plus making ready for a profitable launch of Dungeon&Fighter Cellular in China. We have now additionally positioned a excessive precedence on the event of recent video games and IP, with the potential to develop into enduring pillars. This consists of an thrilling pipeline of recent video games, scheduled for launch within the coming quarters, together with the First Descendant, a dynamic loot shooter scheduled for launch this summer time. The First Berserker: Khazan, a hardcore motion RPG based mostly on Dungeon&Fighter IP, which goals to draw new gamers worldwide. MABINOGI MOBILE, a cell model of the beloved PC sport MABINOGI. And that is not all. Gamers and traders can count on way more new video games and content material in 2025. Long term, we’ve additionally prioritized the event of a franchise administration technique aimed toward driving higher effectivity, profitability, and enjoyable for gamers from our world blockbusters. We’re beginning with the MapleStory franchise, which just lately built-in groups and operations for higher alignment, effectivity, and create synergy. We’re additionally increasing the MapleStory franchise, with new expertise comparable to MapleStory M and MapleStory Worlds with distinctive content material creation options that seem to gamers. And demanding classes discovered in increasing the MapleStory franchise may be priceless in unlocking the big potential in our hottest IP. Lastly, we have established a long-term precedence to enhance NEXON’s revenue margins via timeline development, cautious price administration, and working effectivity as we sharpen our deal with franchise administration and enhance the pace of resolution making. Within the months forward, we are going to present a extra complete report on how new methods might be built-in into our plans for delivering extra participating video games for our gamers and robust outcomes for our traders. With that, we’re able to take your questions.

Takanori Kawai: Subsequent, we wish to open up the traces to dwell Q&A. Q&A session might be carried out with Japanese-English or English-Japanese constructive interpretation. Please be famous that interpretation will come between your questions and our solutions. Please maintain for interpretation earlier than you hear our solutions. All solutions can even be adopted by interpretation, so please maintain till the interpretation finishes earlier than transferring on to the following query. For these of you, who’ve a couple of query, we are going to take your questions one-by-one. Now, we might be comfortable to take your questions.

Operator: [Operator Instructions] [Foreign Language] The primary query is from Seyon Park-san from Morgan Stanley, please.

Seyon Park: Thanks for the chance. I’ve two questions. The primary is said to the Dungeon&Fighter on-line sport in China. It appears that you’ve got made it a precedence to re-energize this sport. I needed to get a bit of bit extra perspective as to the place we’re by way of fixing a number of the issues that you just had talked about within the prior quarter, by way of this imbalance of forex, whether or not that is now type of been fastened? After which in that case, perhaps some coloration on, how or the place we stand by way of energetic customers, by way of monetization, is it nonetheless meaningfully beneath the place it was previous to December or, ought to we type of take it to the purpose the place loads of it has normalized and that it is one thing that we are able to see resolved with time? That is my first query. My second query is regarding the steering for Dungeon&Fighter Cellular in China. And I do know it’s extremely tough to foretell how properly a sport will do. But when I type of take a look at your steering and take Dungeon&Fighter PC revenues, which you might be guiding down year-on-year, I type of get to a variety of ¥15 billion to ¥20 billion type of income for Dungeon&Fighter Cellular. And I used to be questioning if perhaps you might share a few of your assumptions in reaching this quantity? Thanks.

Junghun Lee: [Foreign Language] So, thanks in your query. That is Lee Junghun. I perceive the query is in two elements. You requested about Dungeon&Fighter, a PC sport in China, in addition to the Dungeon&Fighter Cellular sport in China. So I feel each, Uemura-san and I’ll reply your query. So, to begin with, with regard to Dungeon&Fighter PC model within the Chinese language market, first — within the final earnings name assembly, I talked about how we had been going to double the quantity of content material that we offer to the market in comparison with the earlier 12 months, and these plans are at present being executed. Nonetheless, balancing the in-game financial system of a sport is a really difficult course of and there are numerous features that we should contemplate. And I nonetheless consider that, this is a matter that we are able to resolve in the long term. So, as you might be properly conscious, Dungeon&Fighter PC is a vital main title for NEXON and likewise Tencent, and so we’re investing huge sources in addition to our greatest folks. So, I feel from our experiences, we all know that when the in-game financial system stability will not be proper, and also you proceed to drive up, attempt to — you proceed to implement initiatives to drive up the income, then that doesn’t assist the sport. It truly hurts the sport. And so, Tencent and NEXON share the identical ideas, however we consider that fairly than focusing our resolution on enhancing short-term earnings or monetization, it’s higher to truly promote the long-term regular development of the sport. And I wish to briefly discuss concerning the launch of Dungeon&Fighter Cellular within the Chinese language market. First, I wish to point out two issues. So I firmly consider that within the preliminary launch of Dungeon&Fighter Cellular, there might be explosive efficiency, however I am additionally assured that we can maintain efficiency for a really very long time. So, there are two explanation why I say this. And first briefly, please permit me to briefly contact upon the outcomes of the beta take a look at that we carried out in February and March. So, to begin with, the important thing metrics relating to gamers, together with retention charge, may be very, very constructive. And so they have given us rave evaluations concerning the stability of the sport in addition to the standard of the sport. So right here I can not disclose the precise variety of pre-registered customers, however a few of you already know this. However in WeChat, cell QQ, and in main software markets in China, at present our sport is primary by way of pre-bookings. So because the preliminary response, we’re seeing that after the beta take a look at, there was loads of curiosity on this sport, and for these causes, we’re very assured concerning the sport in addition to having loads of expectations for the sport. And naturally, a few of chances are you’ll already know this, however in Korea, we’ve over two years of expertise of servicing this sport to the Korean market. And so via our experiences of servicing this sport in Korea, we’ve been in a position to stably present cell providers and create such an setting. So we’ve already secured loads of content material that we can present for the customers. We can present a number of content material for the long term, and so we’re very assured about Dungeon&Fighter Cellular sport being launched within the Chinese language market. So, my experiences to now have proven me that once you launch a title on the cell platform and PC platform collectively, it creates loads of synergy results, and so I consider that Dungeon&Fighter cell launch within the Chinese language market will assist to broaden the IP franchise and create synergy impact with the PC platform on the similar time.

Shiro Uemura: [Foreign Language] After which I wish to give some extra coloration to the state of affairs of China Dungeon&Fighter. As I’ve already talked about within the earlier incomes calls, there was extreme provide of gold in China’s Dungeon&Fighter, due to this fact the worth of gold declined. So to be able to improve the worth of gold, we’re offering content material at double pace as in comparison with earlier than, in order that we are able to solicit extra consumption of gold. We’re implementing this process in a really regular method, and we’re offering content material as scheduled and re-energizing the title itself, in order that, customers will spend extra gold within the sport. As a matter of truth, within the earlier quarter, ¥100 million gold was price RMB 100, however now it’s at RMB 140, and we consider that as we proceed with the normalization of the worth of the gold, the worth might be between RMB 170 to RMB 200, which might be enterprise as normal. And we’re heading towards that path, and we consider that we are going to attain that vary inside a number of months. We’re nonetheless within the midst of creating enhancements, and we consider that in Q2, there won’t be a lot of a momentum relating to the return of the sunshine customers. And we’ve factored that in, in developing with the steering of year-on-year decline. However having mentioned that, we are going to steadily implement such — the worth of gold might be normalized, and as soon as we attain that stage, we can return to the trajectory of additional development. Now, as to your second query about China Dungeon&Fighter Cellular, because it has been on, we don’t offer you any particulars of the income per title, however simply to provide you some trace as to the way it would possibly evolve in Q2, we are able to say nearly all of the year-on-year income development might be attributable to the contribution by this title.

Seyon Park: Thanks very a lot for the detailed response.

Operator: [Foreign Language] The subsequent query is from Ms. Mori of JPMorgan. Please begin your query.

Haruka Mori: [Foreign Language] Thanks for this chance. I’ve two questions. The primary query is concerning the Chinese language Dungeon&Fighter Cellular. As soon as once more, I need to verify what Uemura-san mentioned earlier. He mentioned that, nearly all of the year-on-year income development is coming from this cell title. However does that imply that the PC model of D&F, Dungeon&Fighter goes to be flat year-on-year? That is what I wish to verify. And in addition, if that’s the case, after which though previously you mentioned that the PC model is bigger than the cell model, nevertheless, given this distinction in take charge, is that going to be the case that cell goes to be bigger than PC someday sooner or later? As a result of now the PC will not be doing so properly. The efficiency will not be at its finest. However previously you mentioned that with the cell launch, there might be some synergy between PC model and cell model. Is it going to occur from now? What’s your expectation concerning the relative dimension of PC model and cell model going ahead? That is the primary query.

Shiro Uemura: [Foreign Language] Thanks in your query. As I mentioned earlier, the distinction on a year-on-year foundation, the expansion is generally coming from Dungeon&Fighter Cellular. I additionally mentioned that, we count on the PC model, Dungeon&Fighter, goes to say no. And for Dungeon&Fighter Cellular, there might be some compensation from MapleStory. That is what is compensating for the losses. And it might seem that Dungeon&Fighter Cellular, as a result of that’s rising, chances are you’ll assume that the PC model could also be flat year-on-year. Nonetheless, there’s a contribution from MapleStory. So that’s the case. When it comes to the relative sizes of PC and cell variations, as Junghun mentioned earlier, we’re specializing in the franchise technique. For the PC model, we have already got a stable core person base. And though, there was some softness within the final month, we consider that there might be a stable restoration of the PC model on a medium to long-term foundation. Then again, for the cell model, our intent is to amass model new and completely different customers going ahead. Subsequently, it might be perfect that we are able to develop each of the variations in the best way that I simply described going ahead.

Haruka Mori: [Foreign Language] Thanks very a lot. I’ve the second query. That is about THE FINALS. There was some draw back on THE FINALS outcomes. Trying on the steering for the long run, it appears that there’s some weak spot. Is it an evidence that retention was considerably weak? How about your outlook on this title going ahead? What sort of measures are you taking? What’s your outlook on the income? If not by way of the numbers, if you happen to may discuss concerning the fundamental development and the roadmap for this — that will be nice. You’ll have a launch of ARC Raiders as properly. In that sense, is there going to be any adjustment to the Embark Studios technique going ahead?

Junghun Lee: [Foreign Language] Thanks in your query. I’ll reply your query. So, with regard to The Finals, we predict on the PC and console platform in addition to within the Western and European markets, customers are holding agency and they’re constantly taking part in the sport. Nonetheless, within the Asian markets, together with China and Korea, the drop charge may be very excessive. So, as I discussed within the final press convention, Embark Studios and NEXON Korea are very carefully working collectively. And thru this collaboration or company, I feel one of many outcomes that we count on is that we can recuperate the drop charge that we see right here within the Asian market within the subsequent few quarters. So, once we launched — launched THE FINALS on the finish of final 12 months, there was loads of customers’ curiosity within the title. So I consider that, there’s nice potential to deliver this title again up. And with regard to THE FINALS, NEXON and Embark Studios are making loads of effort. They’re investing loads of sources. Inside this 12 months, we can have greater than two massive updates. After which in between these updates, in fact, we can have a steady stream of updates. We are going to do our greatest to comprehend rebounds. Subsequent, I wish to contact on Arc Raiders. The Arc Raiders is from Embark Studios. It’s a three-person shooter PVPVE Extraction Shooter sport. The title has been designed for the worldwide audiences. And it may be truly performed on each console and PC platforms. So, with Arc Raiders, I’m positive that within the very close to future, we can showcase the title to the market. Internally, I feel we’ve very excessive expectations for Arc Raiders. We’re making the required preparations along with Embark Studios and NEXON to make sure the success of this title.

Operator: [Foreign Language] The subsequent query is from Yijia Zhai-san of UBS Securities [ph].

Unidentified Analyst: [Foreign Language] Thanks very a lot for permitting me to ask you questions. The primary query is but once more about Dungeon&Fighter China. Within the remark, you talked about concerning the PC model and the way it’s continuing. And I received this impression that almost all in all probability it could be tough to repair the issue. And I feel that within the final earnings name, you talked about that you’d be capable of return the title to the earlier state of affairs inside this 12 months. Are you saying that the timeline of how you’re going to repair this downside has modified? If that’s the case, I would really like you to speak about what’s the distinction between what you’ve talked about in This fall and what you’ve talked about for this earnings name. In different phrases, after This fall, you’ve carried out completely different measures and upon implementing these measures, you had some assumptions. So, are you saying that there was some variations within the assumptions that you’ve got made and also you notice that after implementing the measures that you’ve got talked about within the earlier earnings name? Additionally, the following query is about Dungeon&Fighter. I’m wanting on the steering that you just gave again in 2020 and it appears that evidently the vary of the figures that you’re offering to us are just about the identical as those that you’ve got supplied us in 2020. I do know that you just can not touch upon the main points concerning the pre-registration quantity, however are you able to speak about what has been the response of the customers? Is the response the identical as again in 2020 or is there any distinction between the present response and the response that you just obtained again in 2020? If that’s the case, are you able to give some coloration to the similarities of the variations that you’ve got found?

Shiro Uemura: [Foreign Language] So, within the earlier earnings calls, we’ve talked about that we’re seeing some softness in our main titles, MapleStory Korea and Dungeon&Fighter China. Primarily based on that, we gave you the steering for Q1. Concerning MapleStory, comparatively talking, the revamp is fast and due to this fact on this time’s earnings name, I’ve talked about that in Q2, we can return to the year-on-year similar stage. Subsequent, about China Dungeon&Fighter, again within the earnings name of This fall, we did point out that it’s going to take a number of quarters to return the extent of China&Dungeon Fighter to the extent earlier than. So, having mentioned that, we’re within the midst of that journey. Concerning the worth of the gold, we’re getting nearer to the goal that we’re aiming at, so we might be very cautious and attempt to introduce new content material and see the development of the customers to re-energize the title and attempt to attain the gold worth goal that we’re aiming at. So, merely put, I don’t assume that we’ve modified the tone of how we converse to those titles, as a result of from the very starting, we talked about that it’s going to take a number of quarters to re-energize Dungeon&Fighter China. Now, subsequent about Dungeon&Fighter Cellular. We have now already talked about the launch date that was scheduled again in our earnings name for This fall, and in Q1’s earnings name, we’ve not made any adjustments. We have now been mentioning that Dungeon&Fighter is a very fashionable IP in China, and there are customers who’re extremely anticipating the launch of this very sport. As talked about by our CEO, Junghun, we’ve been conducting completely different assessments and obtained suggestions from the customers, and we factored in these leads to developing with steering for Q2, and we’re scheduled to launch this title on Could twenty first.

Unidentified Analyst: [Foreign Language] I did perceive it very properly. Thanks very a lot.

Operator: [Foreign Language] The subsequent query is from Mr. Bokyung Suh from Sanford C. Bernstein, please.

Bokyung Suh: Hello, that is from Bernstein. I am Suh Bokyung. It is a query to the CEO, Mr. Lee. I feel there is not any large concern on shorter-term performances this 12 months, however as a brand new group CEO for now, primary, what do you consider the hardest elements or key challenges in your thoughts for the three to four-year long-term development? And quantity two, merely, what’s your new NEXON’s future or blueprint in 2026 or 2027 within the long-term, completely different from right this moment? That is it. Thanks.

Junghun Lee: [Foreign Language] So, to begin with, thanks, Bokyung, in your query. It looks as if a very long time in the past that I turned CEO, however in actuality, it is solely truly been a month. With regard to your query, I feel I can reply the primary query and the second query collectively directly. So, this 12 months marks the thirtieth Anniversary of NEXON, and for me personally, I feel it has been 23 years at this firm. So truly, if you happen to look into the 30-year historical past of NEXON, you can find that NEXON has truly realized regular, nonlinear development. So, on this journey, previous journey, you can find that sure IPs truly mutually complemented one another to extend the scale of our portfolio. So Dungeon&Fighter would do properly, after which MapleStory did properly, after which KartRider did properly. And so general, these IPs work collectively to extend the general dimension of the pie or the portfolio. So, I consider that NEXON, that has a really numerous portfolio of a number of IPs, is a really steady and stable firm. So once I take into consideration NEXON in 2027, I envision what’s going to occur at NEXON. I see NEXON as an organization having a really sturdy and agency portfolio that has quite a few IPs which are very sturdy and enduring, together with, in fact, our greatest IPs which have a historical past of over 20 years. And to be able to attain this objective, I wish to now briefly contact upon a number of the motion plans that I have been executing for the previous month. So the very first thing I did was, to be able to broaden the MapleStory franchise, I truly built-in the organizations regarding MapleStory. So, in fact, the advantages of those initiatives will present up as we transfer ahead. However on the similar time, even proper now, I feel the MapleStory franchise is already exhibiting stable progress. So, I’d now prefer to kindly ask in your consideration on a number of the few main indicators. Within the first quarter, MapleStory PC generated 33% year-over-year development exterior of Korea. Within the cell model, MapleStory M worldwide delivered 65% year-over-year development. And utilizing the MapleStory IP, we created MapleStory Worlds, which is a sandbox sport. I feel a number of the considerations that some folks might need is that with an IP with a really lengthy historical past, typically the followers additionally develop previous along with the IP. However with MapleStory Worlds, we’ve seen an enormous inflow of younger players and customers to the platform. And I’d significantly recognize and pay curiosity in our technique to broaden the MapleStory IP franchise. And naturally, I consider that the MapleStory case can develop into a reference level as we proceed to broaden NEXON’s IP transferring ahead. We sit up for your curiosity. And within the development of the corporate, I hope that NEXON as an organization, in addition to the IP that it possesses, might be very a lot beloved by our society and our group of customers. And so transferring ahead as CEO, I wish to additionally make efforts not solely on the enterprise itself, but additionally on areas exterior of the enterprise as properly.

Bokyung Suh: Nice to listen to that. thanks.

Operator: [Foreign Language] [Operator Instructions] This concludes the question-and-answer session. Mr. Kawai, right now, I might like to show the convention again over to you for any further or closing remarks.

Takanori Kawai: Thanks. If there are not any additional questions, I wish to take this chance to thanks in your participation on this name. Please be at liberty to contact the Investor Relations at traders@nexon.co.jp ought to you’ve any additional questions. We recognize your curiosity in NEXON and sit up for assembly with you, whether or not it’s right here in Tokyo or in your nook of the world. Thanks. Since there isn’t a additional query, I wish to take this chance to thanks in your participation on this name. Please be at liberty to contact the Investor Relations at traders@nexon.co.jp ought to you’ve any additional questions. We recognize your curiosity in NEXON and sit up for assembly with you, whether or not it’s right here in Tokyo or in your nook of the world.

Operator: Thanks. That concludes right this moment’s convention. Thanks in your participation. You might now disconnect.

This text was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.