NHN (181710) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 0.9% YoY to KRW 604.9bn; operating profit fell 23% to KRW 21.9bn, while net profit returned to positive territory at KRW 11.2bn.

• Japan games, payment and technology services grew; commerce contracted, and Comico shifted toward Japan and external content distribution.

Financial highlights

• Consolidated revenue was KRW 604.9bn, up 0.9% YoY and 0.8% QoQ; operating profit was KRW 21.9bn, down 23% YoY and 20.7% QoQ.

• Net profit was KRW 11.2bn, up 142.6% YoY and returning to quarterly profitability as FVPL valuation losses and corporate tax expenses declined QoQ.

• Operating expenses totaled KRW 582.9bn, up 2.1% YoY and 1.8% QoQ; commission expense was KRW 410.1bn and labor cost KRW 108.1bn.

Outlook and guidance

• Government GPU project is expected to generate KRW 300bn revenue over its project period; profitability remains unclear pending resolution of operational and usage matters.

• Three government AI projects beginning supply in H2 are expected to generate KRW 12bn revenue based on contract size.

• More than 7,000 B200 GPUs are planned for deployment by Q1 next year, including a single cluster of more than 4,000 GPUs.

• Abyss Dia launches in Japan in August, with global rollout including Korea planned six months later; DARKEST DAYS targets launch this year, while Project STAR moved to H1 next year.