NHN reported strong growth across its core businesses, including gaming and payment services, in the second quarter of this year, driven by its cloud operations and technology sector. The company has begun to see the benefits of management efficiency and cost control measures implemented since the fourth quarter of last year.
On August 11, NHN announced that its consolidated revenue for the second quarter of 2026 reached 757.9 billion won, with an operating profit of 57.9 billion won. This marks increases of 25.3% and 164.1%, respectively, compared to the same period last year, with both figures representing the highest quarterly results in the company's history.
In terms of revenue by segment, the gaming division reported 139.6 billion won, a 21.5% increase year-on-year and a 9.3% increase from the previous quarter. Overall revenue from web board games rose 15% year-on-year, influenced by changes in regulatory environments and the offline tournament 'HPT (HanGame Poker Tour)' for 'HanGame Royal Hold'em.'
Revenue from mobile games in Japan surged 47% year-on-year, with a remarkable 105% growth compared to the previous quarter, driven by collaborations such as '#Compass' with 'Chainsaw Man.'
The payment sector generated 394 billion won, reflecting a 27.3% increase year-on-year and an 11.1% increase from the previous quarter. NHN KCP reported a 34% growth in transaction volume year-on-year due to the influx of new large merchants, resulting in a 27.5% increase in revenue.
The technology sector recorded revenue of 159.8 billion won, boosted by the growth of its artificial intelligence (AI) graphics processing unit (GPU) business, which saw a 52.9% increase year-on-year and a 27.1% increase from the previous quarter.
NHN Cloud's revenue grew 85.3% year-on-year in the second quarter, as the company began stable revenue generation from its NVIDIA B200-based GPU services in the Yangpyeong region of Seoul. NHN Techorus, its Japanese subsidiary, also experienced a 27% increase in revenue year-on-year due to growth in its AWS resale business.
Other segments saw a slight decline of 8.8% year-on-year but a 3.8% increase from the previous quarter, totaling 88 billion won. NHN Link reported a 25% increase in revenue year-on-year, driven by expanded performance revenue.
Looking ahead, NHN plans to accelerate growth in its core businesses in the second half of the year to establish a more solid foundation for profit generation.
In the gaming sector, the company aims to enhance its new game development capabilities, particularly in the Japanese market. The new title 'Fantasy World’s Puchipoyong,' developed in collaboration with NHN PlayArt, is set to launch this winter. NHN PlayArt will showcase this and other major new titles at the Tokyo Game Show in September.
In the payment sector, NHN anticipates that its stablecoin initiative will serve as a new growth driver. NHN KCP held a demo day in July for financial institutions and technology partners, demonstrating the integration of a digital wallet into the Payco app based on a mainnet co-developed with global blockchain company Avalanche.
NHN KCP plans to continuously enhance its related infrastructure and payment models based on its existing merchant network and operational capabilities.
In the technology sector, NHN Cloud is expected to see increased revenue visibility. Discussions are underway for new long-term contracts for the remaining capacity currently operated in the Yangpyeong region, which is part of a government GPU construction project.
To proactively respond to the rapidly growing demand for GPUs, the company plans to secure at least 30 MW of additional AI data center capacity by next year. Simultaneously, it will expand its existing regions with the latest GPU assets of B300 or higher, aggressively advancing its AI infrastructure business.
NHN CEO Jung Woo-jin stated, “The results of management efficiency and cost control efforts over the past few years began to reflect in our performance starting in the fourth quarter of last year. This year marks a period where the results of our core businesses are becoming evident.”
He added, “This second quarter's performance is the first quarter where these results have been confirmed as profits, and we aim to use this as a starting point for continued growth in the second half of the year.”
NHN has been undertaking management efficiency initiatives until last year, restructuring and reorganizing non-core subsidiaries and services in areas such as commerce, travel, and NHN Bugs, which had accumulated losses. The company reduced its number of subsidiaries from over 90 to around 60, while also decreasing fixed costs through service terminations and workforce reallocations, thereby restructuring its business portfolio.
* This article has been translated by AI.
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