NHN (181710) Q1 2025 earnings summary

Executive summary

• Reorganized business segments to focus on games, payment, tech, and other businesses, streamlining less critical services for efficiency.

• Operating revenues for Q1 2025 were KRW 600.1 billion, down 0.7% YoY and 6.8% QoQ, with operating income at KRW 27.6 billion, up 1.3% YoY and 10.6% QoQ.

• Net loss attributable to owners was KRW 3.75 billion, compared to a net loss of KRW 3.34 billion in Q1 2024.

• Games segment showed solid growth in web board and PC poker, with new titles and collaborations driving user engagement.

• Payment business improved profitability, reducing losses and growing transaction volume, while tech segment expanded with new cloud offerings and collaboration tools.

Financial highlights

• Q1 consolidated revenue: KRW 600.1 billion, down 0.7% YoY and 6.8% QoQ.

• Q1 consolidated operating profit: KRW 27.6 billion, up 1.3% YoY and 10.6% QoQ.

• Q1 net loss: KRW 3.75 billion, compared to KRW 3.34 billion in Q1 2024.

• Payment segment revenue grew 4.2% YoY to KRW 290.3 billion; tech revenue rose 11% YoY to KRW 105.6 billion.

• Cash and cash equivalents at quarter-end: KRW 620.6 billion.

Outlook and guidance

• Expecting further growth in games with new launches and differentiated content, even in seasonally slow quarters.

• Anticipating increased government-led AI and high-performance computing projects, with estimated contract size of KRW 23.4 billion for the year.

• Projected at least KRW 15 billion improvement in bottom line from business streamlining, with potential upside to KRW 20 billion.

• Ongoing business structure reorganization in payment and commerce segments and continued focus on expanding technology services.

• No explicit forward-looking guidance provided; management notes ongoing review of accounting standards and market conditions.