NHN Sees Strong Growth in Gaming and Payments; Expects 30% Revenue Increase in Cloud Segment (Comprehensive)

Revenue Reaches 671.4 Billion Won, Up 11.9% Year-on-Year
NHN Doorey to Expand Doorey Service to All Military Personnel

NHN achieved revenue growth in its core businesses of gaming and payments during the first quarter of this year. Although operating profit declined due to increased infrastructure investment, the company expects significant growth in its cloud segment this year.

NHN Pangyo Office Building. Provided by NHN

NHN announced on the 12th that its consolidated revenue for the first quarter of this year reached 671.4 billion won, an increase of 11.9% compared to the same period last year. Operating profit was 26.3 billion won, down 5% year-on-year. Net profit returned to the black, totaling 31.1 billion won.

By segment, revenue from the gaming division rose 6.8% year-on-year to 127.8 billion won. The easing of regulations on web board games, such as Go-Stop and Poker, in February contributed to this revenue growth. In addition, the mobile game 'LINE: Disney Tsum Tsum', which is serviced in Japan, saw its revenue increase by 47% thanks to its 12th anniversary event and a collaboration with the popular anime 'Detective Conan'. During a conference call, NHN CEO Jung Woojin stated, "We are pursuing contracts for intellectual property (IP) that have high recognition in Japan," adding, "We are also preparing a new project that currently only has a code name."

Revenue from the technology sector, including cloud and collaboration tools, increased by 19% to 125.7 billion won. NHN Cloud has begun full-scale operation of the water-cooled graphics processing unit (GPU) B200 at the Seoul Yangpyeong region since the end of March, as part of the 'GPU Procurement, Construction, and Operation Support Project' secured last year. Additionally, the company has installed the high-end GPU B300 at the Gwangju National AI Data Center and was selected as the supplier for the '2026 National AI Data Center Advancement Project'.

NHN Cloud has also decided to merge with Innogrid and its subsidiary NHN Injae Inc. CEO Jung said, "By combining Innogrid's cloud platform technology with NHN Cloud's operational capabilities, we are building a full-stack service system," adding, "Our competitiveness in the enterprise market and in public and financial markets with high security requirements will be further strengthened." NHN Chief Financial Officer (CFO) Ahn Hyunsik emphasized, "Revenue from the Yangpyeong region for cloud operations is expected to be quite significant," and added, "We are looking forward to more than 30% growth in revenue based on cloud service provider (CSP) sales."

In the artificial intelligence (AI) platform segment, NHN is expanding into the defense sector. Its subsidiary NHN Dooray plans to expand its collaboration tool 'Dooray', launched for the Ministry of National Defense in 2024 under the name 'Gukbang Ieum', to 300,000 military personnel nationwide in the second half of this year. CEO Jung stated, "We have strategically targeted the high-potential defense AI transformation (AX) market and will begin to actively pursue it," adding, "We are participating in the Joint Command and Control System Performance Improvement and System Development Project, which is being promoted by the Defense Acquisition Program Administration and led by Hanwha Systems."

Revenue from the payment segment increased by 22.1% year-on-year to 354.6 billion won. NHN KCP's first-quarter payment volume rose by 21% over the same period. The transaction amount for Payco's corporate welfare service grew by 33% year-on-year. NHN plans to use its merchant network and settlement expertise to gain an early lead in the payment market centered on stablecoins.

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