NHN (181710) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached KRW 2,456.1 billion, up 8.2% YoY; Q4 revenue was KRW 643.9 billion, up 7.6% YoY and 5.8% QoQ.

• Q4 operating profit was KRW 25 billion, returning to profitability; full-year operating loss was KRW 32.6 billion, but excluding one-off TMON-WeMakePrice costs, operating profit hit a record KRW 108.1 billion, up 94% YoY.

• Net income for FY2024 was KRW 3.0 billion, but Q4 saw a net loss of KRW 74.8 billion due to significant impairment losses.

• 14 subsidiaries were eliminated in 2024 as part of business efficiency initiatives.

Financial highlights

• Game revenue in Q4 was KRW 119 billion, up 6.5% YoY and 5.7% QoQ; full-year games revenue was KRW 459.8 billion, up 3.0% YoY.

• Payment and advertisement revenue for FY2024 was KRW 1,183.7 billion, up 11.1% YoY; Q4 revenue was KRW 307 billion, up 4.8% YoY and 4.9% QoQ.

• Tech revenue (including cloud) for FY2024 was KRW 414.3 billion, up 12.6% YoY; Q4 revenue was KRW 118.5 billion, up 50.2% YoY and 15.4% QoQ.

• Commerce revenue for FY2024 was KRW 243.3 billion, up 2.9% YoY; Q4 revenue was KRW 61.2 billion.

• Operating expenses for FY2024 were KRW 2,488.7 billion, up 12.4% YoY; Q4 expenses were KRW 618.9 billion, up 2.1% YoY, down 14.2% QoQ.

Outlook and guidance

• New games in 2025 are targeted to contribute at least 25% revenue growth.

• Continued focus on cloud and AI business expansion, especially in the public sector.

• Cloud business expects higher profitability in 2025 despite potential top-line impact from notification service decline; Techorus (Japan) targets higher growth than 2024's 14% YoY increase.

• Plans to fold about 12 more subsidiaries in 2025, mainly in commerce.

• New game launches planned for 2025 and 2026, including next-gen social casino and RPG titles.