NHN Achieves Record-High Q2 Results... Accelerates Expansion of AI Infrastructure Business (Comprehensive)

Sales Up 25.3%, Operating Profit Soars 164.1%

Technology Segment Grows 53% on AI GPU Services

Loosened Web Board Regulation Boosts Game Revenue

GPU Business Eyes Overseas Markets with Japan Data Center Expansion

NHN achieved its highest-ever quarterly results in the second quarter of this year, with strong and balanced growth across all of its business segments, including technology, gaming, and payments.

NHN Headquarters. Provided by NHN

On August 11, NHN announced that its consolidated provisional sales for the second quarter amounted to 757.9 billion won, with operating profit reaching 57.9 billion won—representing increases of 25.3% and 164.1%, respectively, compared to the same period last year. Both sales and operating profit were record highs for a single quarter.

The technology segment delivered 159.8 billion won in sales, up 52.9% year-on-year, driven by the accelerated growth of its artificial intelligence (AI) graphics processing unit (GPU) business. NHN Cloud posted an 85.3% increase in revenue for the second quarter of this year, backed by stable income from the Seoul Yangpyeong region, where GPU-as-a-Service powered by NVIDIA B200 has ramped up. Japanese technology subsidiary NHN Techorus also achieved a 27.0% year-on-year increase in sales, supported by the solid performance of its Amazon Web Services (AWS) resale business.

The payments segment generated 394 billion won in revenue, up 27.3% from the same period last year. NHN KCP saw its transaction volume rise by 34% thanks to the onboarding of major new merchants, which fueled a 27.5% increase in revenue and reinforced its position as the No. 1 payment gateway provider in Korea.

The gaming segment recorded 139.6 billion won in sales, marking a 21.5% year-on-year increase. Notably, the web board game business experienced a 15% revenue boost, buoyed by changes in the regulatory environment and the offline tournament "HPT" of 'Hangame Royal Hold'em', now established as Korea's largest event of its kind. During the same period, Japanese mobile game sales rose 47%, driven by the collaborative synergy of '#Compass' and 'Chainsaw Man'.

Other business segment sales declined by 8.8% year-on-year; however, NHN Link recorded a 25% increase in revenue, driven by stronger performance in live entertainment.

Woojin Jung, CEO of NHN. Provided by NHN.

NHN plans to aggressively expand its AI infrastructure business in the second half of the year. NHN Cloud is currently discussing new long-term contracts at its active Seoul Yangpyeong region, a government GPU infrastructure project. To proactively address surging demand for GPUs, the company intends to secure an additional AI data center of at least 30 MW by next year and bolster the existing region with the latest GPU assets above the B300 level.

Donghoon Kim, CEO of NHN Cloud, said during the earnings conference call that "for the upcoming facilities, about 20 MW will be leased and 10 MW will be built with our own infrastructure, with the aim of commencing operations in the second half of next year." He added, "The total capacity will be similar to that of Yangpyeong, Pangyo, and Gwangju." Kim also elaborated, "Our GPU business is targeting overseas markets rather than domestic, and we are seeing increasing demand from foreign companies. We plan to secure a data center in Japan to expand our global services."

There was also a question regarding the listing plans for NHN Cloud. In response, CFO Hyunsik Ahn stated, "We are currently in discussion with our financial investor (FI), IMM Investment, regarding recently announced dual-listing regulations, and other shareholder consents will also be necessary, so it is difficult to make a definite statement at this stage." He continued, "We will only provide concrete answers when the GPU business is further scaled up and sufficient operating profit is secured, as a proper valuation must also be achieved."

In the gaming business, the company will focus on developing new titles for the Japanese market moving forward. The new game "Fantasy World Puchipoyong," currently in collaboration with NHN PlayArt Japan, is set for release this winter and will be unveiled at the Tokyo Game Show next month. In addition, the payments business is fostering stablecoins as a new growth engine. Last month, NHN KCP held a demo day and introduced a payment and merchant settlement system based on the mainnet co-developed with global blockchain company Avalanche. Having verified the speed and stability of the system, NHN KCP plans to further upgrade the related infrastructure and models, leveraging its existing merchant network and operational expertise.

Woojin Jung, CEO of NHN, said, "The effects of business efficiency improvements and cost controls that we have pursued over the past few years started to be reflected in our performance from the fourth quarter of last year. This year marks the period in which the major businesses are beginning to show substantive results on that foundation," adding, "We will take the profitability achieved in the second quarter as the starting point for our next phase of growth and continue to build on this momentum."

This content was produced with the assistance of AI translation services.