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NHN, 3Q Performance Announcement - Sales KRW 571.5 billion, Operating Profit KRW 23.4 billion

NHN announced on the 9th that it recorded sales of KRW 571.5 billion and operating profit of KRW 23.4 billion in the third quarter of this year. This represents a 9.4% and 181.5% increase, respectively, compared to the same period last year.

Looking at the different business sectors, the "Game" division recorded sales of KRW 110.2 billion, a 4.9% decrease compared to the same period last year. This is due to the negative impact of the reverse baseline caused by the relaxation of regulations on web board games implemented since July. However, the continuous effect of differentiated contents such as "Territory War" resulted in a 14% increase in mobile web board game sales compared to the previous year. Additionally, the mobile game "Yo-kai Watch: Puni Puni," which is being serviced in Japan, achieved its highest quarterly sales ever.

The "Payment and Advertising" division reported sales of KRW 265.1 billion, a 16.8% increase compared to the previous year, driven by the continued growth of NHN Paycos core business and the increased payment volume from domestic and international major franchise merchants of NHN KCP. In particular, the "transaction amount contributing to sales," consisting of point payments, coupons, and corporate welfare solutions, recorded KRW 1.4 trillion, a 29% increase compared to the previous year, out of the total transaction amount of KRW 2.6 trillion for Payco in the third quarter.

The "Commerce" division recorded sales of KRW 60.7 billion, an 8.4% decrease compared to the previous year. While the performance of "Iconic," an Italian luxury specialty distributor acquired in July, was fully reflected, it was affected by the continued uncertain external conditions and the discontinuation of certain services due to business restructuring.

The "Technology" division recorded sales of KRW 95.4 billion, a 33.8% increase compared to the previous year, driven by steady growth in the CSP (Cloud Service Provider) and MSP (Cloud Management Service Provider) businesses.

The "Content" division reported sales of KRW 50 billion, a 1.9% decrease compared to the previous year. However, the division showed potential for growth in the future.

In conclusion, NHNs overall performance in the third quarter showed strong growth in various sectors, including the Payment and Advertising division and the Technology division, despite some challenges faced in the Game and Commerce divisions.

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