The Korea ‘ s largest game company, Necon, recently issued a financial report for the second quarter of 2025, which showed mixed performance as a result of high base figures and exchange rate fluctuations during the same period last year. In the second quarter, there was a decline of 3 per cent to 11,8.9 billion yen (approximately $807 million) in the same year, and net profits fell from 57.9 per cent to 16.8 billion yen (approximately $114 million) in the same period.
Nexon received 1189 million yen (approximately $807 million) in the second quarter, a decrease of 3 per cent (at the reported rate), but an increase of 6 per cent at the fixed rate. This reflects a robust base of growth after adjusting for foreign exchange effects.
Net profits of 16.8 billion yen (approximately $114 million), a decrease of 57.9 per cent (approximately 58 per cent) over the same period. The decline was mainly due to exchange losses of 17.5 billion yen, compared to the exchange gain of 8.2 billion yen during the same period last year. The income from the mobile end of 34,370 million yen (approximately $234 million), a decrease of 47.6 per cent over the same period. The sector is more affected by the high base of the 2024 Q2 Underground Towns and Warriors’ hand-to-hand explosion.
Nexon highlighted a 13 per cent decline in total income over the year for its three core IPs, the underground cities and warriors, Adventure Island and the FC series, mainly as a result of Underground City and Warriors swimming into the expected natural downturn. The overall income of Underground City and Warriors fell by 40 per cent.
However, positive aspects include the 67 per cent increase in the PC version of Underground Cities and Warriors over the same period, which shows a strong recovery. Adventure Island grew by 60 per cent over the same period, thanks to the expansion of Korea and Adventure Island: The World. The FC series exceeded expectations and achieved year-to-year and ring-based growth, driven by the anniversary update.
The financial report went beyond the internal guidance provided by Necon, with the expected 8 per cent higher revenue and 21 per cent higher operating income. Despite this decline, the company highlighted the recovery of the existing game and the recovery of Underground City and Warriors ‘ PC strategy in China. The weak foreign exchange windfall of the yen was a key factor in the decline in net profits, but fixed exchange rate indicators showed a healthier organic growth.