NHN Posts Operating Profit of 26.5 Billion KRW in 2Q 'Solid Performance'... Payco Grows Threefold in One Year (Comprehensive)

[Asia Economy Reporter Bu Aeri] NHN announced on the 7th that it recorded sales of 405.1 billion KRW and an operating profit of 26.5 billion KRW in the second quarter. These figures represent increases of 10.6% and 4%, respectively, compared to the previous year. Despite the impact of the novel coronavirus disease (COVID-19), NHN showed balanced growth in payment, commerce, and gaming sectors.

◆Game Sales 'Hold Steady'= Game sales saw slight growth due to the easing of web board regulations. Including PC and mobile web board games, as well as increased sales from 'Yo-kai Watch Puni Puni,' 'Crusader Quest,' and 'Kingdom Story,' total sales amounted to 105.5 billion KRW. NHN CEO Jung Woo-jin stated during the earnings conference call, "Combined PC and mobile web board sales increased by 40% compared to the same period last year," adding, "In the second half, we are establishing various strategies to expand the influx of new users in the market."

NHN plans to release several new titles, including 'Yongbi Bulpae M,' which will begin pre-registration next week, 'Critical Ops: Reloaded,' 'Disney Tsum Tsum Stadium,' and a sports prediction game. CEO Jung explained, "'Yongbi Bulpae M' is an intellectual property (IP) famous for its martial arts novel background," and added, "Considering the retro sentiment of the target audience, we expect popularity among enthusiasts and are preparing to aim for the number one spot in the martial arts and action genre."

◆1.7 Trillion KRW... PAYCO's Growth= Sales in the payment and advertising business segment grew 19.3% year-on-year to 156.9 billion KRW, driven by increased online PG and overseas merchant payments through NHN Korea Cyber Payment. Commerce segment sales rose 36.1% year-on-year to 66.8 billion KRW, attributed to event effects on major brands of China's Acomate and continuous growth in NHN Godo's online transactions, according to the company.

The transaction volume of the simple payment service PAYCO increased by 26% year-on-year in the second quarter. Offline payment volume grew by 20% compared to the first quarter, which had been sluggish due to COVID-19, resulting in a threefold increase year-on-year. NHN Chief Financial Officer (CFO) Ahn Hyun-sik revealed that PAYCO's transaction amount in the second quarter was 1.7 trillion KRW, a 26% increase compared to the same period last year. PAYCO's monthly active users (MAU) number 4 million.

Meanwhile, the content segment recorded sales of 39.6 billion KRW, down 18.9% year-on-year, due to a decline in 'Bugs' sales and reduced online ticket sales amid the COVID-19 impact. The technology segment posted sales of 39.6 billion KRW, up 32.3% year-on-year, driven by cloud business expansion and increased sales in PNP Secure's core business. Other business sales amounted to 2.1 billion KRW.

CEO Jung stated, "Despite increasing uncertainty in the business environment due to the ongoing global pandemic, balanced growth in non-face-to-face sectors such as payment, commerce, gaming, and cloud stands out," adding, "In the remaining second half, PAYCO, celebrating its 5th anniversary, will continue evolving from a simple payment service to a lifestyle-oriented platform, while we will also make thorough preparations for the release of anticipated titles in the gaming sector."

This content was produced with the assistance of AI translation services.