Continued Growth in Core Business Revenue
Payment Segment Up 4.2% and Technology Segment Up 11.0% Year-on-Year
On May 13, NHN announced that its operating profit for the first quarter of this year reached 27.6 billion KRW, a 1.3% increase compared to the same period last year, while revenue declined by 0.7% year-on-year to 600.1 billion KRW.
Looking at revenue by segment for the first quarter, the game segment recorded 119.6 billion KRW, a 1.9% decrease compared to the same period last year. The payment segment increased by 4.2% year-on-year, driven by strong performance in NHN Payco's business-to-business operations and an increase in transaction volume at major domestic and international merchants for NHN KCP. However, compared to the previous quarter, the payment segment declined by 2.4%, reaching 290.3 billion KRW. Payco's corporate welfare solution business continued its solid growth, with transaction volume in the first quarter rising 24% year-on-year thanks to the ongoing acquisition of large new clients.
The technology segment maintained its growth, reaching 105.6 billion KRW, an 11.0% increase compared to the same period last year. However, due to a base effect from the concentration of NHN Cloud's public sector revenue in the fourth quarter of last year, the segment saw a 10.9% decline compared to the previous quarter. NHN Dooray achieved a 37% year-on-year increase in revenue, supported by the expansion of new clients in the public and financial sectors.
The other segment, which includes commerce, content, and advertising businesses, saw NHN Link's revenue increase by 63% year-on-year, driven by strong ticket sales for sports and performances. However, as the commerce business is undergoing structural optimization, its revenue decreased, resulting in total revenue for the segment declining by 19.8% year-on-year and 19.2% quarter-on-quarter to 104.5 billion KRW.
NHN plans to focus on the successful launch of major new titles in its game business this year, while further accelerating the restructuring of its business around core operations.
In the game business, "Darkest Days" reached a peak of 14,000 concurrent users on the first day of its global open beta service on April 24. Since its release, the average playtime among users has continued to increase, demonstrating high engagement and enjoyment. The company is actively incorporating various user feedback and plans to officially launch the game following a large-scale update in June.
NHN Payco made significant efforts to improve losses by decisively discontinuing low-profitability services, resulting in a reduction in losses by approximately 33% compared to the previous quarter in the first quarter.
Going forward, Payco plans to focus its capabilities on core businesses such as points, coupons, and corporate welfare solutions. At the same time, the company will pursue more proactive structural improvements and strengthen business synergies with NHN KCP to drive both revenue growth and profitability improvement.
Jung Woojin, CEO of NHN, stated, "NHN will continue to build a stronger business foundation through ongoing management efficiency centered on our core businesses in gaming, payments, and technology," adding, "We will prioritize visible improvements in profitability and enhancement of corporate value, concentrating all company resources on these goals."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
