Nexon Announces $2 Billion Special Dividend for Shareholders
Nexon Co., Ltd., a noteworthy player in the online gaming industry based in Minato, Tokyo, has revealed its ambitious plan to distribute a special dividend amounting to approximately 3.24 billion yen (or around 20 billion dollars) per share. This significant payout amounts to ¥415 per share, aimed at shareholders who are registered by the end of September 2026, pending formal approval from their board of directors in September.
Nexon's President, Lee Jung-hon, expressed optimism about the company’s financial health, stating, "Our cash and cash equivalents amount to ¥842 billion. This, alongside our strong portfolio centered around major franchises, demonstrates our ability to create an operational cash flow of around ¥100 billion annually, which reinforces our solid financial standing. Given this foundation, returning a portion of our cash to shareholders is a prudent measure to enhance capital efficiency. We remain committed to prioritizing stable dividends and agile share buybacks in our shareholder return strategies and will consider additional returns as circumstances allow."
This announcement aligns with Nexon's long-standing policy to return over 33% of its previous year's operating profit to its shareholders, with an eye towards achieving a return on equity (ROE) of 10% or more, and a longer-term target of 15%.
In addition to the special dividend, Nexon intends to implement an interim dividend of ¥30 per share and an annual dividend of ¥60 per share for the fiscal year 2026. Furthermore, the company successfully completed a share buyback program worth ¥30 billion, which was approved by the board in May. With the combination of regular dividends, share buybacks, and this special dividend, Nexon's total return to shareholders since its public listing in 2011 is projected to surpass ¥900 billion by the end of fiscal 2026.
Founded in 1994 and listed on the Tokyo Stock Exchange's First Section in December 2011, Nexon specializes in the development, production, and distribution of online games. The company is a part of several major indices including the JPX Nikkei Index 400, Nikkei Stock Average 300, and Nikkei 225. Nexon currently operates over 40 games, including popular titles such as ‘MapleStory,' ‘Mabinogi,' and ‘Dungeon & Fighter,' available across more than 190 countries and regions on PC, console, and mobile platforms. As part of its IP growth strategy, Nexon aims to provide new experiences within its key franchises and establish new pillars in its existing portfolio, featuring both vertical and horizontal growth structures for the future.
Nexon's President, Lee Jung-hon, expressed optimism about the company’s financial health, stating, "Our cash and cash equivalents amount to ¥842 billion. This, alongside our strong portfolio centered around major franchises, demonstrates our ability to create an operational cash flow of around ¥100 billion annually, which reinforces our solid financial standing. Given this foundation, returning a portion of our cash to shareholders is a prudent measure to enhance capital efficiency. We remain committed to prioritizing stable dividends and agile share buybacks in our shareholder return strategies and will consider additional returns as circumstances allow."
This announcement aligns with Nexon's long-standing policy to return over 33% of its previous year's operating profit to its shareholders, with an eye towards achieving a return on equity (ROE) of 10% or more, and a longer-term target of 15%.
In addition to the special dividend, Nexon intends to implement an interim dividend of ¥30 per share and an annual dividend of ¥60 per share for the fiscal year 2026. Furthermore, the company successfully completed a share buyback program worth ¥30 billion, which was approved by the board in May. With the combination of regular dividends, share buybacks, and this special dividend, Nexon's total return to shareholders since its public listing in 2011 is projected to surpass ¥900 billion by the end of fiscal 2026.
Founded in 1994 and listed on the Tokyo Stock Exchange's First Section in December 2011, Nexon specializes in the development, production, and distribution of online games. The company is a part of several major indices including the JPX Nikkei Index 400, Nikkei Stock Average 300, and Nikkei 225. Nexon currently operates over 40 games, including popular titles such as ‘MapleStory,' ‘Mabinogi,' and ‘Dungeon & Fighter,' available across more than 190 countries and regions on PC, console, and mobile platforms. As part of its IP growth strategy, Nexon aims to provide new experiences within its key franchises and establish new pillars in its existing portfolio, featuring both vertical and horizontal growth structures for the future.
Topics Entertainment & Media）
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