[Comprehensive] NHN, who took a break in the third quarter. Focus on enhancing core business profitability
[ Moon Byung-soo reporter] NHN accepted a report card below the market forecast due to an increase in operating costs in the third quarter of this year. The company plans to focus on expanding the game business and improving profitability of core businesses.
On the 8th, NHN (CEO Jung Yeo-jin) announced that it recorded sales of KRW 52.4 billion, operating profit of KRW 8.2 billion, and net profit of KRW 21.4 billion in 3Q. Revenue increased 10.6% YoY, but operating profit and net profit fell 70.3% and 51.9%, respectively. Revenue and operating profit increased 2.2% and 59.7% compared to the previous quarter, and net profit turned to black. Securities prices are expected to generate NHN’s third-quarter sales, operating profit of W18.1bn, and net profit of W10.2bn.
The game division rose by 21.4% YoY and 11.3% Qom, up 11.59 billion won. In particular, web board game sales have led the game sales by 38% YoY and 19% Qom, thanks to the revised game method implementation effect. Mobile web board game sales also rose 64% year-on-year to steadily increase their market share.
The payment and advertising sector accounted for 8.9% year-on-year, up 4.8% Qom, thanks to NHN’s large domestic and overseas large-scale merchants’ transactions and increased sales of coupon business.
The commerce division was influenced by the seasonal low season and consumer sentiment of the Chinese commerce business, but the US NHN Global’s commission sales increased by 13.8% year-on-year, down 18.8% from the previous quarter, to 66.3 billion won.
In the technology sector, both the CSP business and the MSP business have risen, with sales of 71.3 billion won, up 3.3% Qom and 3.3% Qom. The sales of the CSP business, including the NHN Cloud, rose 47.1% YoY thanks to the public sector’s order, and the MSP business led by NHN Records, Japan, also grew 14.3% YoY, while the 4th quarter of the technology sector has the characteristics of the public sector. It is expected to be more prominent in appearance.
The content division is a 16.4% increase compared to the previous year’s Sports Ticket sales of NHN Links, which has been able to achieve positive results in North America and Europe, and the Sports Ticket sales of NHN Links, which recovered the previous level of Corona, and increased by 2% compared to the previous quarter. It was reported to record sales of billion won.
NHN is a strategy to expand its position to a global game company that encompasses various genres beyond Korea’s No. 1 web board operators after the merger of the game business organization on October 1. To this end, the company has decided to expand the professional match of the Match Three Puzzle in Japan and Korea to the Western market. At the end of this year, it will showcase ‘Puzzle & Casino’ with casino-style in the puzzle genre and ‘Double A Poker’ based on Texas Hold’em.
Chung Yeo-jin, CEO of NHN, said in a conference call held on the day, We built a dedicated engine ‘M-Brick’ for the development of match 3 puzzle games to expand the matched 3 puzzle capabilities proved in Korea and Japan to Western. The time spent on the development of match 3 puzzle games will be shortened through the em brick engine.
The mid-core game lineup will also be built, starting with ‘Darkest Days’, which is preparing for the first half of the year. In addition, the company plans to challenge the global blockchain game market as a game specialized in web boards and social casino genres such as ‘Project We Mix Sports’ and ‘Marvel Slot’.
Chung said, We believe that the web board genre is a form that is quite in line with blockchain-based game P & E. So there are projects that have been prepared with interest since 2018. I decided that blockchain web board games are suitable. We are strategically working on the first half of next year and the second half of next year.
NHN Pasco is planning to grow its profitability with its own payment method ‘point payment’ and ‘coupon business’, which is the essence of the Pay business. As the daily recovery continued, Pasco’s third-quarter trading volume increased 29% year-on-year to 2.5 trillion won, and the offline payment amount also grew 45% year-on-year. In addition, the transaction amount of ‘Campus Zone’ and B2B service ‘Corporate Welfare Solution’ increased 242% and 111% YoY, respectively, and Pasco Point payment was 98% year-on-year, and coupon sales grew 55% year-on-year. It is solidifying the rise.
NHN Cloud recorded a 39%order rate in the public sector’s cloud conversion project in 2022, and has secured 4,350 customers in the private market. The strategy is to expand the experience of financial firms, leading to Shanahan Investment & Securities, which signed an YOU in the future, leading to growth that encompasses public and private sectors.
Chung Yeo-jin, CEO of NHN, said, In the third quarter of this year, despite economic uncertainty, it was a time when most of the projects showed growth year-on-year growth year-on-year growth. Based on the solid results of the company, we will focus our capabilities to improve profitability by leading the even growth of core businesses such as payment advertising, commerce, technology, and content.