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| ▲ A photo of the corporate logo of NHN Corp. provided by the company (PHOTO NOT FOR SALE) (Yonhap) |
(LEAD) NHN-Q1 earnings
(LEAD) NHN shifts to loss in Q1 on financial asset losses
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SEOUL, May 10 (Yonhap) -- NHN Corp., a leading South Korean information technology company, said Tuesday it swung to a net loss in the first quarter from a year earlier on losses of its financial assets and discontinuation of some of its game products.
The company logged a net loss of 4.5 billion won (US$3.5 million) on a consolidated basis in the three months ending in March, shifting from a net profit of 23.8 billion won a year earlier.
NHN said its net loss is blamed on the losses of the company's financial assets and suspension of some of its game services.
Operating profit fell 38.2 percent on-year to 15.5 billion won. The operating profit was 37.1 percent lower than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Sales climbed 15.2 percent on-year to 520.5 billion won. Sales from the company's games services fell 2.5 percent to 108.8 billion won, but those of commerce, technology service and content products climbed 35.3 percent, 42.3 percent and 10.2 percent, respectively.
NHN said it has reorganized its games and cloud service units to strengthen the long-term competitiveness of its two key business pillars. It has also recently decided to build a cloud data center in Suncheon, 415 kilometers south of Seoul, and plans to increase related investment in the southwestern region.
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