NHN in best Q3 on strong e-pay, to release NFT-based game next year

[Source: NHN Corp.]

outh Korea’s leading game and online service provider NHN Corp. posted record quarterly earnings in the July-September period, on strong revenue from its electronic payment and cloud servicing and vowed to release NFT-based game next year to stimulate lackluster game business.

Kospi-listed NHN disclosed on Tuesday that its consolidated operating income came to 27.9 billion won ($23.68 million), up 40.5 percent from three months ago and 18.6 percent from a year prior. Sales grew 4.2 percent on quarter and 14.8 percent on year to 472.5 billion won.

Net profit totaled 44.5 billion won, soaring 193 percent from the previous quarter and 38.7 percent from a year ago.

The latest quarterly operating income, sales and net are the company’s best since establishment in 2013.

Shares of NHN finished Tuesday up 12.26 percent at 87,900 won in Seoul.

The strong top and bottom line largely owes to online payment boom.

Digital payment and advertisement business raked in an all-time quarterly high of 208.4 billion won in revenue, adding 6.2 percent on quarter and 23.4 percent on year.

NHN KCP Corp., its online payment business unit, saw growth in sales thanks to its addition of overseas franchises.

Payco Order. [Source: NHN Corp.]

Transactions at its digital ordering service Payco Order more than doubled compared to last year. The amount of pre-pay Payco points charged in the third quarter quadrupled against a year ago.

Revenue from technology service business totaled 57.2 billion won, jumping 11 percent on quarter and 82 percent on year on the back of increased contracts with public institutions.

Mainstay online game business earned 95.5 billion won in sales, up 10 percent on quarter but off 4.9 percent on year.

E-commerce business reported revenue of 76.9 billion won, adding 4.1 percent from a year ago.

Contents services raised 48.3 billion won in revenue in the July-September quarter, up 3.2 percent on year as its web comics platform NHN Comico posted better sales numbers to offset slower ticket sales at NHN Ticket Link.

To revitalize its game business, NHN CEO Jung Woo-jin said the company will join hands with local mid-tier game publisher Wemade Co. to launch a non-fungible token (NFT)-based game globally in the first half of next year.

The company signed a memorandum of understanding last month with Wemade Tree, the game label’s subsidiary operating blockchain platform WEMIX, to collaborate on blockchain-based gaming, contents and IT technologies.

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