Korea Stock Market Insights

Tag: Games

  • NHN H1 2025 Earnings Analysis: Growth and Slowdown, What’s the Investment Strategy?

    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.

  • NHN Announces 3-Year Shareholder Return Policy: Investment Strategy and Outlook

    1. NHN’s Shareholder Return Policy: What’s Changing?

    From 2026 to 2028, NHN plans to return approximately 15% of its consolidated EBITDA to shareholders. The core components are annual dividend payments exceeding the previous year’s amount and the cancellation of at least 50% of newly acquired treasury shares.

    2. Why Announce the Shareholder Return Policy Now?

    NHN has recently faced challenges, including declining sales and a net loss. The announcement of the shareholder return policy can be interpreted as a strategy to improve investor sentiment and stabilize stock prices. It can also be seen as a stepping stone to attract investment for securing long-term growth engines.

    3. NHN’s Current Business and Future Outlook

    • Games: NHN is expected to secure growth momentum through the performance of its mobile games based on overseas IPs and the release of new titles.
    • Payments and Advertising: NHN is expected to strengthen its competitiveness in the online/offline payment market through the expansion of PAYCO users and the incorporation of NHN KCP.
    • Cloud: The cloud business has high growth potential through expansion in the public and private sectors and the pursuit of new businesses such as AI data centers.
    • Commerce and Webtoons: NHN is expected to seek further growth through business diversification in a growing market environment.

    4. Action Plan for Investors

    This shareholder return policy can act as a short-term momentum for stock price increases. However, from a long-term investment perspective, it is essential to continuously monitor the growth of NHN’s core businesses and its profitability improvement trend. In particular, attention should be paid to the performance of the games, payments, and cloud businesses, as well as changes in the market’s competitive landscape.

    When will NHN’s shareholder return policy be implemented?

    The three-year shareholder return policy will be implemented from 2026 to 2028.

    What are the key components of the shareholder return policy?

    NHN plans to use approximately 15% of its consolidated EBITDA to pay dividends that exceed the previous year’s amount annually and cancel at least 50% of newly acquired treasury shares.

    What is the outlook for NHN’s stock price?

    While the announcement of the shareholder return policy can have a positive impact on the stock price in the short term, the long-term outlook depends on NHN’s business performance and improvement in profitability.