NHN Corp. swung to an operating loss last year after writing down bad debt from its troubled e-commerce subsidiaries, despite achieving record revenue growth across its core businesses.
The South Korean gaming and technology company reported an operating loss of 32.6 billion won ($24.5 million) for 2023, compared with a profit a year earlier. Annual revenue rose 8.2% to 2.46 trillion won, the highest in the company’s history.
The loss stemmed primarily from provisions related to uncollectible receivables from Tmon-Wemake, the company’s e-commerce unit that faced financial difficulties in the third quarter. Excluding these one-time costs, NHN said its operating profit would have jumped 94% to 108.1 billion won.
Fourth-quarter revenue hit a record 643.9 billion won, up 7.6% from a year earlier, driven by strong performance in gaming and payment services. The company’s webboard games showed particular strength, with “Hangame Poker Classic” reaching peak quarterly sales.
NHN is shifting focus away from its struggling e-commerce operations toward higher-margin businesses. The company plans to release six new games this year and expects at least 25% revenue growth from new gaming titles, Chief Executive Officer Jeong told investors.
The technology division posted the strongest growth, with revenue surging 50.2% in the fourth quarter to 118.5 billion won. NHN’s cloud unit secured several government contracts, while its workplace collaboration tool Dooray gained traction among financial institutions, including Woori Financial Group and Shinhan Securities.
Looking ahead, NHN plans to expand its artificial intelligence offerings through its cloud platform and integrate AI capabilities into its collaboration tools.