NHN H1 2025 Earnings: Key Analysis
NHN’s H1 2025 revenue increased by 0.1% year-on-year to KRW 1.205 trillion, but operating profit fell short of market expectations at KRW 49.6 billion, down 11.1%. This is attributed to increased expenses from new business investments and a decline in the game segment, despite growth in payments and advertising.
1. Performance Analysis by Business Segment
- Payments and Advertising: This segment maintained robust growth, accounting for 51% of revenue, driven by PAYCO and PG/VAN services. However, intensifying competition in the simple payment market could pressure profitability.
- Games: Revenue decreased year-on-year, representing 19.66% of total revenue. While PC online games remain stable, increased competition in the mobile game market and delays in new releases negatively impacted performance.
- Cloud: Positive results were seen with public sector contracts and participation in AI computing resource projects. Expansion into the Japanese market and global partnerships are expected to drive long-term growth.
- Commerce: Stable profits were generated thanks to growth in the e-commerce market, and efforts to secure global competitiveness are ongoing.
- Content: Growth of the webtoon platform ‘Comico’ is positive, and IP diversification strategy is a key focus.
2. Financial Soundness and Shareholder Value
Debt reduction improved the debt-to-equity ratio to 71.57%, strengthening financial soundness. Shareholder-friendly policies, such as treasury stock acquisition/cancellation plans and maintaining dividend policies, are also positively evaluated.
NHN Investment Strategy: Opportunities and Risks
While NHN shows positive aspects such as balance between core and new businesses and improved financial structure, challenges remain, including strengthening competitiveness in the game segment, improving operating profit, and responding to changes in the macroeconomic environment. Investors should carefully monitor future quarterly earnings announcements and market conditions when making investment decisions.
NHN Investment FAQs
What are NHN’s main businesses?
NHN operates various businesses including payments and advertising, games, cloud, commerce, and content. Representative services include PAYCO, Hangame, and Comico.
How was NHN’s performance in the first half of 2025?
Revenue increased by 0.1% year-on-year to KRW 1.205 trillion, while operating profit decreased by 11.1% to KRW 49.6 billion.
What should investors be aware of when investing in NHN?
Investors should consider the intensifying competition in the game segment, increased costs due to new business investments, and intensifying competition in the simple payment market. Changes in the macroeconomic environment should also be monitored.
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