Nexon’s 2023 net profit sharply down on higher operating cost

South Korea's online gaming giant Nexon Co. said Thursday its net profit sharply decreased in 2023 from a year earlier due to higher operating cost deriving from foreign exchange losses and investment in U.S. film studio AGBO, despite record high annual sales. Net profit came to 655.8 billion won (US$493.6 million) last year, down 30 percent from a year ago, the company said in a regulatory filing on the Tokyo Stock Exchange. The company reported a yearly operating profit of 1.25 trillion won, up 30 percent from the previous year, and record-setting sales of 3.93 trillion won, up 20 percent on-year. For the fourth quarter, the company posted a net loss of 373.3 billion won. Its quarterly operating profit dived 59 percent on-year to 40.5 billion won, while revenue rose 4 percent to 753.8 billion won. Nexon said its yearly net profit decreased due to operating income underperformance affected by foreign exchange loss on U.S. dollar-denominated cash deposits and its AGBO investment. But sales hit an all-tim e high in 2023 on the popularity of its steady sellers, including Maple Story, FC Online and Dungeon and Fighter, as well as its mobile games, such as FC Mobile and Blue Archive, the company added. In particular, Nexon's latest games -- Dave the Diver and The Finals -- gained worldwide popularity, with Dave the Diver recording a combined 3 million units of global sales last year, and The Finals reporting 10 million downloads in two weeks after its release. Nexon said it plans to release two new titles this year, third-person shooter The First Descendant and Mabinogi Mobile. Owen Mahoney, CEO of Nexon Japan, said the success of The Finals will likely become the company's next major franchise to play a pivotal role in the company's global expansion strategy, and season two of the title will be released in March. Lee Jung-hun, CEO of Nexon Korea, said the company is working to release Dungeon and Fighter Mobile in China as soon as possible and plans to update its other original titles to continue its gro wth. Lee is set to become the new CEO of Nexon Japan next month. Source: Yonhap News Agency