NHN (181710) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 21.2% YoY to KRW 758.3bn and operating profit increased 112.6% to KRW 58.8bn, supported by growth in payments and technology.

• 9M revenue rose 19.5% YoY to KRW 2,187.6bn; operating income increased 85.1% to KRW 142.9bn.

• Strategy prioritizes Korean web board games, Japanese live-game operations, GPU services and removal of lower-profit operations.

Financial highlights

• Q3 net income was KRW 38.9bn, up 115.8% YoY and 33.6% QoQ; results included a debt-forgiveness gain at a subsidiary under liquidation.

• Operating expenses were KRW 699.5bn, up 17.0% YoY and down 0.1% QoQ; marketing rose 41.1% QoQ to KRW 24.7bn, partly for HPT and Tokyo Game Show.

• Pre-tax income reached KRW 55.1bn, up 41.0% YoY; income tax expense fell 23.0% to KRW 16.2bn.

• Operating margin was 7.8%, up 3.3 percentage points YoY; net margin was 5.1%, up 2.2 points YoY.

• 9M net income was KRW 99.0bn, versus KRW 29.0bn a year earlier; parent-attributable profit was KRW 72.7bn, versus KRW 17.4bn.

Outlook and guidance

• Targeting 100 MW of AI data center capacity by end-2027, including existing capacity; Gasan and Incheon Gajwa facilities are planned to operate from 1H27.

• Plans include a 20 MW Pohang lease, a 10 MW Gwangju facility targeted for completion by end-2027, a potential 26 MW Jangseong lease and other 2027 projects.

• More than 1,700 B300 GPUs are planned for new Seoul-area capacity, with service and revenue recognition staged from January 2027.

• GPU revenue guidance remains difficult amid market uncertainty; operating experience indicates ~30% profitability after direct costs, with broader expansion potentially adding revenue on a scale similar to current FactoryX revenue.

• Web board game growth may moderate as 2026 regulatory tailwinds fade; focus is on maintaining current revenue in 2027 and growing HPT into a major tournament. Puchipoyon is slated for 1H27.