South Korea’s leading online game and online service provider NHN Entertainment Corp. saw operating profit and revenue jump more than 60 percent on year in the fourth quarter in contrast to other local game publishers due to its strength in mobile labels and non-game services.

NHN Entertainment in a regulatory filing on Wednesday reported its operating profit for the fourth quarter ended December 2018 jumped 65.5 percent to 16.7 billion won ($14.9 million) from a year ago period on a consolidated basis. Its revenue soared 62.3 percent to 385.8 billion won and its net loss shrank to 4.4 billion won from 10.4 billion won over the same period.

For full 2018, operating profit nearly doubled to 68.7 billion won. Annual revenue expanded 41.0 percent on year to 1.3 trillion won, exceeding the 1 trillion won mark for the first time ever. Its net profit sharply improved to 110.5 billion won from 8.7 billion won last year.

NHN Entertainment shares closed Thursday 11.96 percent higher at 72,100 won.

The company performed well across the board in the fourth quarter.

Revenue from game business rose 6.9 percent to 115.1 billion from the third quarter. Mobile games were responsible for 67 percent of the revenue and PC online games the remaining 33 percent.

Non-game business delivered revenue of 270.7 billion won, up 17.1 percent quarter over quarter. Revenue from payment service and advertising through mobile payment services platforms including Payco grew 9.5 percent on quarter to 144.9 billion won.

Entertainment business also fared well. It delivered 46.8 billion won in revenue, up 27.2 percent from the previous quarter after incorporating company’s newly acquired units including integrated travel agency Tourbaksa and digital comic company Wisdom House into its financial statement. Bugs, music streaming service also improved performance.

Revenue from the tech service business rose 29.6 percent on quarter to 27.5 billion won.

By Lee Dong-in and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]