NHN Reports 28.3 Billion KRW Operating Profit in Q1, Up 30%... Achieves Growth and Profitability Improvement
Growth of Untact Culture Boosts Web Board Games and Online Payments
New Game Releases in Second Half Including 'Critical Ops: Reloaded'
[Asia Economy Reporter Jin-gyu Lee] NHN achieved both external growth and profitability improvement in the first quarter despite the COVID-19 pandemic. This was thanks to the strong performance of web board games and online payment businesses amid the spread of untact culture due to the pandemic.
NHN announced on the 8th that its first-quarter sales increased by 6.5% year-on-year to 394.6 billion KRW, and operating profit rose by 30.2% to 28.3 billion KRW. Net profit reached 17.6 billion KRW, up 58.9%. By segment, game sales recorded 104.7 billion KRW, up 4.7% from the previous quarter, driven by the seasonal peak of PC and mobile web board games and increased sales of Japan's 'LINE Disney Tsum Tsum' and 'Yo-kai Watch Puni Puni'. Among game sales, mobile games accounted for 66%, and PC games 34%. By service region, domestic sales accounted for 49%, and overseas sales 51%.
The payment and advertising business segment achieved sales of 151.3 billion KRW, up 22% year-on-year, with PAYCO's transaction volume growing 31% year-on-year and increased online payments through NHN KCP. The commerce segment saw a 10% decrease from the previous quarter due to a decline in sales of NHN Global in the US amid the COVID-19 impact, but NHN Godo recorded 63.7 billion KRW, up 25.5% year-on-year, thanks to continuous growth in online transactions. The content segment recorded 39.4 billion KRW, down 11.9% from the previous quarter, as ticket link sales decreased due to COVID-19 despite stable sales contribution from the webtoon business.
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Meanwhile, NHN stated that despite reduced external activities due to COVID-19, PAYCO's transaction volume in the first quarter grew 31% year-on-year to 1.7 trillion KRW, maintaining 4 million monthly active users (MAU). NHN CEO Woo-jin Jung said, "In the second half of the year, with new releases such as 'Critical Ops: Reloaded' and 'Yongbi Bulpae M', PAYCO will gradually expand its service areas including coupons, PAYCO Order, Campus Zone, and meal tickets to become a lifestyle-oriented platform."
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