NHN Q2 Operating Profit 26.5 Billion KRW... 4% Increase YoY (Update)

[Asia Economy Reporter Buaeri] NHN announced on the 7th that it recorded sales of 405.1 billion KRW and 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 slightly increased due to the easing of web board regulations. Sales totaled 105.5 billion KRW, driven by PC and mobile web board games as well as increased revenue from 'Yokai Watch Puni Puni', 'Crusader Quest', and 'Kingdom Story'.

Sales in the payment and advertising business segment reached 156.9 billion KRW, a 19.3% increase year-on-year, thanks to growth in NHN Korea Cyber Payment’s online PG and overseas merchant payments.

Commerce segment sales rose 36.1% year-on-year to 66.8 billion KRW, which the company attributed to event effects for major brands of China’s Acomate and continuous growth in NHN Godo’s online transactions.

The content segment recorded sales of 39.6 billion KRW, down 18.9% year-on-year, due to a decline in 'Bugs' revenue 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 expansion in the cloud business and increased sales in PNP Secure’s core business. Other business sales amounted to 2.1 billion KRW.

Payco, the simple payment service, saw its transaction volume in the second quarter increase by 26% year-on-year. Offline payment volume grew 20% compared to the first quarter, which had slowed due to COVID-19, resulting in a threefold increase year-on-year.

Jung Woo-jin, CEO of NHN, stated, "Despite growing 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 is remarkable. In the remaining half of the year, Payco, celebrating its 5th anniversary, will continue evolving from a simple payment service to a lifestyle-oriented platform. Meanwhile, in the gaming sector, we will focus on the successful launch of anticipated titles such as 'Yongbi Bulpae M', 'Critical Ops: Reloaded', and 'Disney Tsum Tsum Stadium'."