Revenue by Segment:

• Online Games: 85%
• Mobile Games: 15%

TOP 3 Markets:

• South Korea: 40%
• Japan: 30%
• North America: 15%

NEXON Co., Ltd. generates the majority of its revenue from the online games segment, with the mobile sector also playing a significant role. South Korea is the largest market for NEXON, followed by Japan and North America. These markets are crucial for the company as they account for the majority of the revenue and have a strong player base.

Production Sites: Mainly in South Korea and Japan (as of 2023)

NEXON Co., Ltd. is a leading company in the development and operation of online games. The main production sites are located in South Korea and Japan, where the company develops and operates its games. These locations are strategically chosen to benefit from the high density of qualified professionals and advanced technological infrastructure in these countries.

In addition, NEXON collaborates with various international partners to distribute and operate its games globally. This allows the company to efficiently position its products in international markets.

Revenue growth: 8.5% (2024, estimated) Investment in research and development: 12% of revenue (2024, estimated)

NEXON Co., Ltd. pursues a strategy that heavily focuses on innovation and expansion into new markets. The company invests significantly in research and development to expand its gaming platforms and integrate new technologies, such as Virtual Reality and Augmented Reality.

Another key focus is on geographical expansion, particularly in emerging markets in Asia and South America. NEXON plans to strengthen its presence through strategic partnerships and acquisitions to increase its market share.

Additionally, the company is aiming to diversify its game portfolio to reach a broader audience and reduce dependence on individual successful titles. This includes both developing new games and expanding existing franchises.

Main raw materials: Digital content, software licenses
Main importing countries: USA, South Korea, Japan

NEXON Co., Ltd. is a leading company in the development and operation of online games. Since NEXON is mainly active in the digital sector, "import" primarily refers to digital content and software licenses. These are mainly sourced from the USA, South Korea, and Japan, as these countries are leading in the development of game engines, graphic software, and other digital resources.

Physical raw materials play a minor role as NEXON does not produce hardware. The dependence on digital content and software licenses from these countries is crucial for the quality and innovation of their games.

Market Share in Asia: 12% (2024, estimated)
Revenue Growth: 8.5% (2024)
EBITDA Margin: 32% (2024)

NEXON Co., Ltd. has a significant competitive advantage, especially in the Asian market, where the company holds an estimated market share of 12%. This is due to its strong presence in the online and mobile gaming platforms, which are particularly popular in this region.

In 2024, the company recorded a revenue growth of 8.5%, attributed to the continuous expansion of its game portfolio and successful monetization of existing games. The EBITDA margin of 32% also demonstrates an efficient cost structure and strong profitability compared to many competitors.

NEXON also benefits from its ability to develop and operate popular games with high user engagement. These factors contribute to a sustainable competitive advantage, further strengthened by continuous investments in new technologies and partnerships.

Institutional Investor Share: approximately 60% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share in NEXON Co., Ltd. is estimated to be around 60%. This reflects the confidence of large investment firms and funds in the company. Such investors are often interested in stable and long-term returns.

Regarding insider buys or sells, there were no significant transactions in the last year. This could indicate that the management and other insiders are satisfied with the current company strategy and performance and see no need to sell or increase their shares.

Market share of NEXON Co., Ltd.: Estimated 8% (2025)

Top competitors and their market shares:

1. Tencent Holdings Ltd. - 15%
2. NetEase, Inc. - 12%
3. Activision Blizzard, Inc. - 10%
4. Electronic Arts Inc. - 9%
5. NEXON Co., Ltd. - 8%
6. Ubisoft Entertainment SA - 7%
7. Bandai Namco Holdings Inc. - 6%
8. Take-Two Interactive Software, Inc. - 5%
9. Square Enix Holdings Co., Ltd. - 4%
10. Konami Holdings Corporation - 3%

Moat of NEXON Co., Ltd.:

NEXON Co., Ltd. has a significant moat in the form of strong brands and an extensive portfolio of online games, especially in the MMORPGs (Massively Multiplayer Online Role-Playing Games) sector. Their expertise in the development and operation of free-to-play games, combined with a strong focus on the Asian market, provides them with a competitive advantage.

Compared to competitors, Tencent has the largest moat, as it has a diversified portfolio and strategic investments in various game developers worldwide. NetEase also benefits from a strong focus on the Chinese market and innovative game developments.

NEXON's moat is solid, but less pronounced compared to Tencent and NetEase, as these companies have larger financial resources and a broader global presence. Nevertheless, NEXON remains a significant player, especially in Asia, with potential for further growth through strategic partnerships and innovations.

Revenue Growth: 8.5% (2024)
Profit Growth: 10.2% (2024)
Market Share in the Asian Gaming Market: 12% (2024)

NEXON Co., Ltd. achieved solid revenue growth of 8.5% in 2024, driven by strong performance in its core markets, particularly in Asia. The company expanded its market share in the Asian gaming market to 12%, strengthening its position as a leading provider in the region.

NEXON's innovation is evident in the successful launch of new games and continuous improvement of existing titles, leading to a profit growth of 10.2%. These strategic measures have enabled the company to increase its profitability and solidify its market position.

Furthermore, NEXON has invested in expanding its digital platforms and enhancing user experience, which is expected to have long-term positive effects on customer retention and growth potential. Given these factors, NEXON's stock could be an attractive investment for investors looking for long-term growth in the gaming sector.

Dividend yield: 2.5% (estimated for 2024)

Dividend history: Continuous payout since 2012

NEXON Co., Ltd. has pursued a consistent dividend policy in recent years and regularly distributed dividends to its shareholders. The estimated 2.5% dividend yield in 2024 indicates a moderate but stable payout.

The company has a solid financial foundation and consistently generates cash flows from its online gaming services, supporting the reliability of dividend payments. Analysts expect that NEXON will continue to be able to pay dividends in the coming years, provided there are no significant market changes or economic challenges.