NHN Announces Third Quarter 2009 Financial Results 2009-11-16 NHN Announces Third Quarter 2009 Financial Results - Year-on-year increase of 13.7% in revenue, 19.3% in operating income - Steady growth of online advertisement due to the economic recovery - Maintained market leadership with intensified search and mobile convergence services SEONGNAM, South Korea, October. 29, 2009 – NHN Corporation., Korea’s leading internet company, announced that the company recorded KRW 333.2 billion in revenue, KRW 132.9 billion in operating income and KRW 106.8 billion in net income for the third quarter of 2009. Such figures are based on financial results before the demerger of NHN Business Platform. Sales revenue rose 13.7% and operation income 19.3% compared to last year, and also recorded slight increase on quarter-to-quarter basis (sales 0.8%, operation income 0.5%) The revenue breakdown for the third quarter is: search sales 52%, games sales 32%, display (banner) ads 15%, and others 1%. Growth was mainly led by search advertisement, of which sales grew 9.6% year-over-year and 4.6% compared to the previous quarter to reach KRW 173.6 billion, driven by client growth and higher PPC (payment per click) prices. The company’s display ad revenue also increased 9.9% year-on-year and 4.6% quarter-on-quarter to record KRW 50.4 billion, followed by the increase of the rich media and additional shopping advertisements. NHN’s games revenue recorded a year-on-year increase of 23.3%, or KRW 106.6 billion in revenue. Games sales fell slightly by 4% quarter on quarter, due to seasonal effects and the launch of the Green Game Campaign. Post-demerger revenue, operating income and net profit of NHN stood at KRW 290.8 billion, KRW128 billion and KRW 106.8 billion respectively. “Continuous growth is predictable, due to signs of economic recovery and growing seasonal demand in the fourth quarter., NHN will lead the market by strengthening search competency via intensified search technology and quality contents, establishing PWE (personalized web environment) and operating competitive services including mobile SNS and Me2day,” said CEO Sang Hun Kim. NHN’s third quarter revenue on a consolidated basis rose slightly by 0.3% quarter-over-quarter to reach KRW 375.7 billion. Operating income and net profit recorded KRW 141.2 billion and KRW 107.8 billion respectively. By region, NHN’s domestic and international revenue recorded KRW 335.3 billion and KRW 40.3 billion respectively. By business segment, online advertisement sales contributed KRW 224.1 billion while online game sales accounted for KRW 149 billion. Figures in NHN’s financial results are limited to the results of NHN Corporation, and do not include the financial results of NHN’s subsidiaries. ※ Please refer to the following financial results summary for more information.