- Title
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NHN Announces Fourth Quarter and Full Year 2006 Financial results.
2007.02.13
NHN Announces Fourth Quarter and Full Year 2006 Financial results.
- Fourth Quarter
Revenues KRW 175.9 billion, Operating Profit KRW 74.8 billion
- Full Year 2006
Revenues KRW 573.4 billion, Operating Profit KRW 229.6 billion
SEONGNAM, South Korea, February 13, 2007- NHN Corp.(035420,KQ), Korea’s leading Internet company, announced today that they had again achieved the record breaking quarter.
NHN reported revenues of KRW 175.9 billion for the fourth quarter of 2006, a 23.2% increase compared to the previous quarter. Operating income for the fourth quarter was KRW 74.8 billion or 42.5% of revenues. This was a 29.9% increase from the third quarter. NHN also posted an outstanding year-on-year increase of 58.8% in revenues and 72.1% increase in operating income.
Net profit for the fourth quarter of 2006 was KRW 48.7 billion, which is a remarkable 32.6% increase compared to the previous quarter. Net income turned around to black compared to the same period of the previous year. NHN recorded net loss in the fourth quarter of 2005 due to the goodwill depreciation of Chinese Business, Ourgame.
The sales breakdown for the fourth quarter is as follows; search ads sales accounted for KRW 92.8 billion or 53% of total sales, game sales KRW 39.5 billion or 22%, banner ads sales KRW 28.3 billion or 16%, e-commerce sales KRW 11.8 billion or 7% and others KRW 3.5 billion or 2%.
Naver solidified its leading position as search portal in the fourth quarter with Search ads sales of KRW 92.8 billion, a 17.3% increase from the previous quarter. NHN’s game business showed a 33% increase from the previous quarter with KRW 39.5 billion in sales. This is due to an increase of concurrent users from the new games, such as ‘R2’ and ‘Skid Rush’.
Leveraging increased performance in all its services, banner ads and e-commerce posted sales of KRW 28.3 billion and 11.8 billion, which are a 30.6% and a 16.3% increase from the previous quarter.
[Annual Revenues]
For the fiscal year 2006, NHN announced revenues of KRW 573.4 billion, which is a year-on-year increase of 60.4%. Operating income in 2006 was KRW 229.6 billion, a year-on-year increase of 74.7%.
The sales breakdown for the fiscal year 2006 is as follows; Search ads sales accounted for KRW 298.7 billion (52%), game sales KRW 128.8 billion (22%), banner ads sales KRW 95 billion (17%), e-commerce sales KRW 40.1 billion (7%) and others KRW 10.8 billion (2%).
NHN also announced earnings guidance of KRW 800 billion in revenues and KRW 300 billion respectively in operating income for this year 2007, which is based on its business plans, expected enhancement of quality in overall services, increased synergy effect between NHN’s global game portals (Korea, China, Japan and the U.S.), and expected successful launch of the Japanese search service.
[Overseas Business]
NHN Japan posted sales of JPY 2.18 billion in the fourth quarter of 2006, which is a 31.6% increase from the previous quarter. Operating profit stood at JPY 461 million, which is a turnaround compared to the third quarter of 2006. Ratio of operating profit was reported at 21.2%.
NHN Japan posted sales of JPY 7.09 billion and operating profit of JPY 660 million for the year ending December 31. 2006. NHN Japan announced that their sales target for 2007 stands at JPY 10 billion and that the company plans to roll out diverse publishing projects, expand game development with in-house technology and improve the quality of their on-line communities.
Ourgame, NHN’s Chinese joint venture, achieved RMB 50.55 million in sales during the fourth quarter of 2006, which is a 24.6% increase compared to the previous quarter, and a 101% year-on-year increase. Operating profit stood at RMB 4.72 million, which is a 177.8% increase compared to the previous quarter, and a turnaround compared to the previous year.
Ourgame posted a year-on-year growth of 111.9% in 2006 and recorded a turnaround, with sales of RMB 151.11 million and operating profit of RMB 10.96 million. Ourgame announced that they expected to double the growth in 2007, with RMB 300 million as their sales target for fiscal year 2007.
NHN USA is also expected to show noticeable performance of ‘ijji.com’ and revenues of 5 million USD in this year.
“The year 2007 will be the milestone year for NHN because we aim to reach combined sales of one trillion KRW across all NHN’s offices around the world and NHN’s major subsidiaries.” said Chae Hwi-young, CEO of NHN. “We will strive to grow into a global company by making successful inroads into the Japanese search market and creating synergy through our successful global game network across Korea, China, Japan and the U.S.”
- Fourth Quarter
Revenues KRW 175.9 billion, Operating Profit KRW 74.8 billion
- Full Year 2006
Revenues KRW 573.4 billion, Operating Profit KRW 229.6 billion
SEONGNAM, South Korea, February 13, 2007- NHN Corp.(035420,KQ), Korea’s leading Internet company, announced today that they had again achieved the record breaking quarter.
NHN reported revenues of KRW 175.9 billion for the fourth quarter of 2006, a 23.2% increase compared to the previous quarter. Operating income for the fourth quarter was KRW 74.8 billion or 42.5% of revenues. This was a 29.9% increase from the third quarter. NHN also posted an outstanding year-on-year increase of 58.8% in revenues and 72.1% increase in operating income.
Net profit for the fourth quarter of 2006 was KRW 48.7 billion, which is a remarkable 32.6% increase compared to the previous quarter. Net income turned around to black compared to the same period of the previous year. NHN recorded net loss in the fourth quarter of 2005 due to the goodwill depreciation of Chinese Business, Ourgame.
The sales breakdown for the fourth quarter is as follows; search ads sales accounted for KRW 92.8 billion or 53% of total sales, game sales KRW 39.5 billion or 22%, banner ads sales KRW 28.3 billion or 16%, e-commerce sales KRW 11.8 billion or 7% and others KRW 3.5 billion or 2%.
Naver solidified its leading position as search portal in the fourth quarter with Search ads sales of KRW 92.8 billion, a 17.3% increase from the previous quarter. NHN’s game business showed a 33% increase from the previous quarter with KRW 39.5 billion in sales. This is due to an increase of concurrent users from the new games, such as ‘R2’ and ‘Skid Rush’.
Leveraging increased performance in all its services, banner ads and e-commerce posted sales of KRW 28.3 billion and 11.8 billion, which are a 30.6% and a 16.3% increase from the previous quarter.
[Annual Revenues]
For the fiscal year 2006, NHN announced revenues of KRW 573.4 billion, which is a year-on-year increase of 60.4%. Operating income in 2006 was KRW 229.6 billion, a year-on-year increase of 74.7%.
The sales breakdown for the fiscal year 2006 is as follows; Search ads sales accounted for KRW 298.7 billion (52%), game sales KRW 128.8 billion (22%), banner ads sales KRW 95 billion (17%), e-commerce sales KRW 40.1 billion (7%) and others KRW 10.8 billion (2%).
NHN also announced earnings guidance of KRW 800 billion in revenues and KRW 300 billion respectively in operating income for this year 2007, which is based on its business plans, expected enhancement of quality in overall services, increased synergy effect between NHN’s global game portals (Korea, China, Japan and the U.S.), and expected successful launch of the Japanese search service.
[Overseas Business]
NHN Japan posted sales of JPY 2.18 billion in the fourth quarter of 2006, which is a 31.6% increase from the previous quarter. Operating profit stood at JPY 461 million, which is a turnaround compared to the third quarter of 2006. Ratio of operating profit was reported at 21.2%.
NHN Japan posted sales of JPY 7.09 billion and operating profit of JPY 660 million for the year ending December 31. 2006. NHN Japan announced that their sales target for 2007 stands at JPY 10 billion and that the company plans to roll out diverse publishing projects, expand game development with in-house technology and improve the quality of their on-line communities.
Ourgame, NHN’s Chinese joint venture, achieved RMB 50.55 million in sales during the fourth quarter of 2006, which is a 24.6% increase compared to the previous quarter, and a 101% year-on-year increase. Operating profit stood at RMB 4.72 million, which is a 177.8% increase compared to the previous quarter, and a turnaround compared to the previous year.
Ourgame posted a year-on-year growth of 111.9% in 2006 and recorded a turnaround, with sales of RMB 151.11 million and operating profit of RMB 10.96 million. Ourgame announced that they expected to double the growth in 2007, with RMB 300 million as their sales target for fiscal year 2007.
NHN USA is also expected to show noticeable performance of ‘ijji.com’ and revenues of 5 million USD in this year.
“The year 2007 will be the milestone year for NHN because we aim to reach combined sales of one trillion KRW across all NHN’s offices around the world and NHN’s major subsidiaries.” said Chae Hwi-young, CEO of NHN. “We will strive to grow into a global company by making successful inroads into the Japanese search market and creating synergy through our successful global game network across Korea, China, Japan and the U.S.”
