Date: Tuesday, August 11, 2026
Attendees: CEO Chung Woo-jin, CFO Ahn Hyun-sik, NHN Cloud CEO Kim Dong-hoon
Agenda: NHN Q2 2026 Earnings and Future Strategy

■ Summary of NHN Q2 2026 Earnings and Status

▣ Q2 2026 Earnings Summary

- Q2 2026 Revenue: KRW 757.9 billion (+25.3% YoY, +12.9% QoQ)

- Q2 2026 Operating Profit: KRW 57.9 billion; Net Profit: KRW 29 billion

▣ Q2 2026 Earnings Summary by Business Segment

■ Game Revenue: KRW 139.6 billion (+21.5% YoY, +9.3% QoQ)

- PC Online game: KRW 49.1 billion (+13.5% YoY, +2.3% QoQ)

ㄴ Average Revenue Per Paying User (ARPPU) increased due to changes in the regulatory environment for online card and board games

- Mobile game: KRW 90.5 billion (+26.3% YoY, +13.5% QoQ)

ㄴ Hangame Royal Hold'em: Hosted HPT, the largest offline tournament in Korea

ㄴ #Compass: Strong revenue performance driven by the 'Chainsaw Man: Reze' collaboration

■ Payment Revenue: KRW 394 billion (+27.3% YoY, +11.1% QoQ)

- NHN Payco

ㄴGrowth in transaction volume for coupons and corporate welfare solutions

ㄴ Operating loss narrowed due to increased revenue contributing to profitability

- NHN KCP

ㄴ Q2 Total Transaction Volume: KRW 17 trillion (+34% YoY, +19% QoQ)

ㄴ Domestic PG market share at 30% as of end of Q2 (+2%p QoQ)

ㄴ Unveiled payment and settlement infrastructure at the Stablecoin Demo Day in July

■ Technology Revenue: KRW 159.8 billion (+52.9% YoY, +27.1% QoQ)

- NHN

ㄴ Revenue from B200 supply for AI GPU-related projects at the Seoul Yangpyeong Region reflected

ㄴ Increased visibility of GPU revenue following discussions for new long-term contracts at the Seoul Yangpyeong Region

ㄴ Reviewing additional data center infrastructure acquisition

- NHN Techorus

ㄴ Continued revenue growth in AWS resale business

▣ Q2 2026 Expense Summary

- Q2 2026 Operating Expenses: KRW 700 billion (+20.1% YoY, +8.5% QoQ)

- Payment Commissions: KRW 507.3 billion (+23.7% YoY, +11.2% QoQ)

ㄴ Increase in revenue-linked commissions due to NHN KCP revenue growth

- Labor Costs: KRW 116 billion (+7.3% YoY, +1.6% QoQ)

ㄴ Reflected bonuses in certain business units due to strong performance, despite a decrease in the number of consolidated employees

- Advertising Expenses: KRW 17.5 billion (-16.4% YoY, -25.5% QoQ)

ㄴ Decrease in marketing costs for online card and board games and new titles like ABYSSDIA launched in Q1

- Depreciation and Amortization: KRW 37 billion (+47.6% YoY, +13.3% QoQ)

ㄴ Additional right-of-use asset depreciation reflected due to new accounting treatment for NHN Cloud's AI GPU government projects

- Other Operating Expenses: KRW 18.8 billion (+29.2% YoY, +23.4% QoQ)

ㄴ Electricity costs related to NHN Cloud's AI GPU government projects reflected

▣ Game Business

- Plan to concentrate new game development capabilities primarily on the Japanese market

- New title: 'Fantasy World Puchi-Poyon' (tentative)

ㄴ New title currently under collaboration between NHN's game division and NHN PlayArt in Japan

ㄴ Targeting release this winter

ㄴ Major new titles, including 'Fantasy World Puchi-Poyon', and live games to be showcased at the Tokyo Game Show in September

■ Q&A

What are the differentiators and margin rates for the cloud business?

CEO Kim Dong-hoon = We have the most stable GPU operation experience in Korea. We provide not just simple operations, but the entire stack, including control platforms and AI agent environments. This differentiates us from providers who simply supply GPUs.

CFO Ahn Hyun-sik = Our differentiator is our ability to proceed quickly on a small scale without taking on significant short-term risk. We believe this impacts our margins. However, while government projects provide access to GPU usage rights, they also come with operational cost burdens. We expect higher margins from direct operations. It is difficult to provide an exact margin figure due to market volatility. We aim to balance maintaining high margins with risk management.

What is the guidance for cloud-related depreciation in the second half? Are there plans for a cloud subsidiary IPO regarding double-listing regulations? Is there a possibility of contracts with global clients?

CFO Ahn Hyun-sik = Depreciation was reflected as revenue from the Yangpyeong Region began in earnest in Q2. We expect to maintain a similar level in Q3. It remains fluid due to new investment plans. Revenue is expected to increase in line with depreciation.

Regarding double-listing regulations, discussions are ongoing. It is not a decision for the two companies alone; we must listen to and obtain consent from shareholders. It is difficult to say for sure. It is important to achieve the desired IPO, but the valuation must be there. We will be able to provide a concrete answer on the IPO once the GPU business is in full swing and we have secured sufficient operating profit.

CEO Kim Dong-hoon = We are preparing the GPU business with a focus on overseas markets. Global client demand is already increasing. We expect to sign contracts with some clients soon. We believe the key to this business is the ability to supply GPUs faster than anyone else, and we are preparing to expand services for global clients by securing a data center in Japan.

Could you provide a breakdown and guidance for the cloud business, separating the Yangpyeong Region from existing operations.

CFO Ahn Hyun-sik = It is difficult to answer. The contract for Yangpyeong is not finalized. There is still room to generate additional revenue. Operating profit may fluctuate depending on how quickly contracts are signed and whether they are long-term. What is clear is that the GPU market is very strong, and things are moving in a positive direction.

The company has turned to operating profit across all business segments on a quarterly basis; can we assume this will continue? You mentioned the potential to lease an additional 30MW; what is that scale relative to the total area.

CFO Ahn Hyun-sik = We expect this trend to continue through the end of this year. The 'others' segment is still realizing losses, but we are rapidly streamlining and significantly reducing cost losses.

CEO Kim Dong-hoon = For the 30MW-class data center, we are preparing 20MW through leasing and 10MW as a self-owned center, targeting the second half of next year. In terms of total capacity, it is similar in scale to our existing footprint, including Yangpyeong, Pangyo, and Gwangju.