NHN Reports 27.4 Billion KRW Operating Profit in 3Q, Up 24.5% YoY (Update)

Jung Woo-jin, CEO of NHN

[Asia Economy Reporter Buaeri] NHN announced on the 13th that it recorded sales of 419.4 billion KRW and an operating profit of 27.4 billion KRW in the third quarter.

This represents an increase of 19.2% and 24.5% respectively compared to the previous year.

NHN's strong performance was driven by its payment and commerce businesses. The expansion of the non-face-to-face (untact) market due to the impact of the novel coronavirus disease (COVID-19) contributed to the growth of these businesses.

Payment and advertising sales rose 37.9% year-on-year to 168.9 billion KRW. The growth in NHN Payco sales, including Payco Order and Payco Coupon, along with increased online PG (Payment Gateway) services from NHN Korea Cyber Payment and overseas merchant payments, led to the sales increase. In particular, Payco's transaction volume in the third quarter increased by 20% compared to the same period last year. Offline payment volume more than doubled year-on-year, expanding its share to 14% of total payments.

The commerce sector recorded 73.9 billion KRW, a 41.5% increase year-on-year, supported by strong B2B sales from NHN Acommate, which operates China-based businesses, increased demand from NHN Global's online channels, and continuous growth in transaction volume from major NHN Godo merchants.

In the content sector, stable webtoon sales from NHN Comico and increased music distribution sales from Bugs resulted in 42.5 billion KRW. Game sales reached 100.4 billion KRW, a 1.7% increase year-on-year. In the technology sector, increased cloud demand from public institutions and a growing customer base for the collaboration platform 'NHN Dooray' led to sales of 39.2 billion KRW, up 22.9% from the previous year.

Jung Woo-jin, CEO of NHN, stated, "In the unprecedented situation of the ongoing COVID-19 pandemic, we focused on rapid response to external environments and seeking new opportunities, which resulted in remarkable achievements in the payment and commerce businesses." He added, "As a comprehensive IT company, we will actively review and implement necessary internal and external changes to ensure balanced growth across all business sectors."

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