NHN has announced a landmark second quarter, reporting its highest-ever quarterly revenue and operating profit, driven by robust growth across its technology, gaming, and payment sectors. The company’s consolidated revenue reached 757.9 billion won, marking a significant 25.3% increase compared to the same period last year. Operating profit soared to 57.9 billion won, an impressive 164.1% jump year-over-year, with both metrics setting new quarterly records for the company.
Technology Segment Drives Significant Growth
The technology division was a primary engine for this success, with revenue climbing 52.9% year-over-year to 159.8 billion won. This surge was notably boosted by the inclusion of revenue from NHN Cloud’s Seoul Yangpyeong Center. This facility, equipped with NVIDIA B200-based graphics processing units (GPUs), began contributing to sales following the commencement of its services. Additionally, NHN Techers, the company’s Japanese technology subsidiary, saw increased sales from its reselling activities with Amazon Web Services (AWS).
Gaming Sector Shows Strong Performance
NHN’s gaming division also demonstrated considerable strength, generating 139.6 billion won in revenue, a 21.5% increase from the second quarter of the previous year. Mobile game revenue experienced a substantial 26.3% rise, reaching 90.5 billion won. PC online game revenue also grew by 13.5% to 49.1 billion won. Factors contributing to this growth included regulatory changes affecting the webboard game environment and the success of HanGame Royal Holder’s offline events.
Payment Business Continues Upward Trajectory
The payment sector continued its strong performance, with revenue reaching 394 billion won, up 27.3% compared to the prior year’s second quarter. NHN KCP’s transaction volume in the second quarter alone reached 17 trillion won, a 34% increase year-over-year. The onboarding of new large-scale convenience store clients played a crucial role in this expansion of transaction volume.
Other Segments and Future Outlook
Revenue from other segments amounted to 88 billion won, a slight decrease of 8.8% compared to the same period last year. This segment’s performance was influenced by various factors, including the expansion of content production revenue by NHN Link, a decrease in sales from NHN Comico and external distribution, and the scaling back of operations for some subsidiaries of NHN Travel and NHN Edu.
Upcoming Game Releases and Initiatives
Looking ahead, NHN is preparing to launch new games, with a particular focus on the Japanese market. The joint development project between NHN Games and NHN PlayArt, titled ‘Fantasy World: Pouchyong,’ is slated for release in the winter of this year. NHN PlayArt is also set to showcase new titles and existing live services at the Tokyo Game Show in September.
Advancements in Payment and Cloud Services
NHN KCP is actively preparing to introduce stablecoin payment services. In July, the company, in collaboration with global blockchain firm Avalance and financial and technology partners, successfully demonstrated digital wallet and payment/settlement processes for its Payco app using a mainnet developed on the Avalance blockchain. This initiative aims to leverage blockchain technology for enhanced payment solutions.
In response to the escalating demand for GPUs, NHN Cloud is planning significant expansions. The company intends to acquire at least 30 megawatts (MW) of AI data center capacity by 2027. Furthermore, plans are in motion to integrate NVIDIA B300 or higher-grade GPUs into its existing data centers. Discussions are also underway for new long-term contracts concerning the surplus GPU inventory currently operated at the Seoul Yangpyeong Center.
CEO’s Perspective on Performance
Jeong Woo-jin, CEO of NHN, expressed optimism regarding the company’s performance. He stated, “The results of our operational efficiency and cost control efforts over the past few years have begun to materialize since the fourth quarter of last year, and this year marks a period where the results of these key businesses are becoming substantial.” He further elaborated, “The second-quarter results are the first quarter where these achievements have been confirmed as profits. We will use this as a launchpad for our growth trajectory and maintain this momentum in the second half of the year.”
This strong second-quarter performance sets a positive tone for NHN as it continues to invest in technological innovation, expand its gaming portfolio, and enhance its payment and cloud services, aiming for sustained growth in the latter half of the year.
