NHN Q2 Revenue 599.4 Billion KRW Up 8.7%... "Core Business Continues to Grow" (Update)
by Kang Nahum
Published 06 Aug.2024 08:24(KST)
Sales of 599.4 billion KRW, Operating Profit of 28.5 billion KRW
Increased by 8.7% and 36.3% respectively compared to the same period last year
NHN announced on the 6th that it recorded consolidated sales of 599.4 billion KRW and an operating profit of 28.5 billion KRW in the second quarter of this year. Sales increased by 8.7% and operating profit grew by 36.3% compared to the same period last year.
Looking at sales by segment, the gaming division recorded 106.4 billion KRW, down 0.7% year-on-year and 12.7% quarter-on-quarter. Although overall game sales declined quarter-on-quarter due to the base effect following the strong performance of the 10th anniversary event for "LINE Disney Tsum Tsum" in the first quarter, web board games maintained steady traffic with sales growth even in the off-season second quarter compared to the previous quarter.
The payment and advertising division achieved 295.8 billion KRW, up 14.7% year-on-year, supported by the expansion of revenue-linked businesses of NHN Payco and NHN KCP’s record-high overseas transaction volume for the quarter. Payco’s transaction amount contributing to sales in the second quarter reached 1.5 trillion KRW, continuing growth compared to the same period last year. Sales of the strategic corporate welfare solution business also increased by 32% year-on-year.
The commerce division recorded 57.4 billion KRW, up 10.7% year-on-year, influenced by the acquisition of "Iconic" in the second half of last year.
The technology division achieved 98.0 billion KRW, up 4.7% year-on-year. In particular, NHN Cloud, which began to fully recognize revenue generated from the "Gwangju National AI Data Center," led the growth of the technology division with a 34% increase in sales compared to the same period last year.
The content division recorded 53.4 billion KRW, up 5.8% year-on-year. Especially, NHN Link saw a 48% increase in sales year-on-year due to increased revenue related to professional baseball, which attracted the highest-ever audience in the second quarter.
Jung Woo-jin, CEO of NHN, stated, "Despite the unstable internal and external business environment recently, we continued stable growth in the second quarter thanks to sustained growth focused on core businesses and the overall group’s management efficiency achievements. We will continue to strive to expand our fundamental business competitiveness, especially in the gaming division, in the second half of the year."
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